Link to original blog post: Can Ethical Practices Increase Profits?

I agree with the point that Raza is putting across, I believe there is much more to the link between ethics and economic return that what is exposed on that entry. The lack of ethics dealt with throughout such post have an immediate negative impact on the consumer, therefore, the customers move away from Product Y because of the health-related consequences it has on their skin: not because of the ethics.

Coming from a developing country, my experience tells me otherwise: unethical practices – most frequently than not – increase profits. Most products decide to turn eco-friendly by making their packages biodegradable or out of recycled materials, which is more expensive than normal plastic. Unluckily, most Salvadoreans cannot afford a more expensive package whose only benefit is a reduction on their footprint on the ecosystem, regardless of their good intentions.

Therefore, in most cases, as long as they do not have an immediate negative impact on the consumer, being ethical does not actually increase profits. The article itself somewhat supports my point since Company  X (the ethical one) does not actually make more profit by abiding by social expectations, instead, Company Y decreases theirs by not doing so.