Ethics and Environmental Responsibility
Modern businesses can't just focus on profits - they must consider their impact on people and the planet too.
Ethical considerations involve moral principles of right and wrong, especially regarding international workers and suppliers. UK firms might exploit cheap labour in developing countries, but many now adopt codes of conduct limiting work hours and ensuring fair treatment. Fair trade sourcing helps developing country producers receive fair compensation.
Acting ethically creates trade-offs: customers often prefer ethical businesses, leading to increased profits and positive shareholder effects. However, ethical suppliers can be harder to find and more expensive, potentially raising prices.
Environmental influences push businesses to become more 'green'. Companies reduce packaging, recycle more, dispose of waste carefully, and use efficient machinery. Being environmentally friendly can provide competitive advantages by attracting eco-conscious customers and reducing long-term costs.
The challenge lies in balancing sustainability with profit. Environmental improvements often require upfront investment, but they can lead to cost savings and better brand reputation over time.
Think About It: Companies like Patagonia have built their entire brand around environmental responsibility - proving that ethics and profits can work together!