First Principles of Business Law

10.3. The advantages of ethical behaviour

Keeping in mind the facts of the case study, what are the advantages of behaving ethically in business?  One advantage would be maintaining good relationships with customers and not losing them to other stores when the supply situation normalises.  In other words, ethical considerations tend to underpin longer term and wider considerations than simply making a quick profit.

Also, businesspersons (and others) who wish to avoid unwanted regulation should behave ethically.  This is well illustrated by the historical behaviour of suppliers of goods and services to consumers. In the past suppliers routinely behaved in unethical ways with the result that consumer protection laws were enacted and now regulate major aspects of this industry. 

On balance, therefore, it is normally beneficial to conduct one’s affairs ethically as well as legally.