Does it Pay for Business to Be Ethical?

According to a recent study reported by the Wall Street Journal, moving your company to embrace more environmentally and socially responsible practices-that are third party certified would be a good investment. Consumers may be willing to purchase unethically produced products, but a steep discount.

The return on investment and profits of companies in the 21^st Century are clearly rooted in social responsibility as noted in these results:

REWARD AND PUNISHMENT 

What consumers were willing to pay for a pound of coffee based on what they were told about the company's production standards?

Ethical standards . . . . . . . . $9.71

Unethical standards . . . . . . . . 5.89

Control (no information) . . . . . 8.31

Source: “WSJ-Does Being Ethical Pay”

A recent survey by BBMG indicated that 35% of all Americans have avoided a product because of a company’s practices. “People may not pay more for green products, but they may punish products and companies perceived as not socially or environmentally responsible.” Andrew Winston.