Ethical behaviour and corporate social responsibility can bring significant benefits to a business. For example, they may:
-attract customers to the firm’s products, thereby boosting sales and profits
-make employees want to stay with the business, reduce labour turnover and therefore increase productivity
-attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees
-attract investors and keep the company’s share price high, thereby protecting the business from takeover.
Unethical behaviour or a lack of corporate social responsibility, by comparison, may damage a firm’s reputation and make it less appealing to stakeholders. Profits could fall as a result.