Business ethics and morality are the future global trend. Consumers are more skeptical in nowadays society due to the higher education level. In the check-out line, they are aware of a product not only on their price and promotion but the concrete actions the firms contribute to the society. In one survey, it is stated that 53% of consumers would like to reward companies with corporate social responsibility (CARS) with a 10% premium for their products.
On the other hand, their stock values are extended too as they get more favorable rating from securities analysts. Moreover, it helps reducing promotion costs. By shifting the promoting budget to build up CARS, it generates a reputation image of the firm. Lastly, less wasteful use of resources saves money and the environment, while greater concern for employee welfare can reduce employee turnover costs. All of these are benefits brought by business ethics and morality. It well illustrates doing well by doing good.
