What is/are Ethics ? In layman’s language, Ethics are the morals on which we base our decisions and actions.
if we make “Ethical” decisions we are making moral decisions..What is right rather than what is beneficial.
So how does this apply to businesses and why is it vital?
In today’s day and age , Consumer awareness is peaking . Consumers have sufficient knowledge on production processes, materials used , and the impacts of these on the environment, public etc. Thus an unethical decision can actually lead to 1)A fall in Sales ,2)A tarnished reputation. This is why corporate social responsibility is of great importance.This means that business’s consider societies interests, by taking responsibility for the impact(s) of it’s decisions and activities on stakeholders and the environment.
As I researched on companies that encompass all this, I came across Patagonia, (an outdoor clothing and gear company) . This company created “environmentally conscious” gear so to say, and reaped the benefits . Major concerns that would come up would be “what about the costs?” and “why DO businesses have to develop products with such conscious methods or materials?”. The answer is that not only does this help society in all aspects, but also the future and growth of the company, as can be read in the article:
“the beloved outdoor outfitter has doubled its scale of operations and tripled its profits, with about $600 million in revenues in 2013”
Patagonia is a classic example of why ethics are important and beneficial to a business.
Stimpson, Peter, and Alastair Farquharson. “Ethics.” Cambridge International as and A Level Business Studies Coursebook. Cambridge: Cambridge UP, 2010. N. pag.
