Updated: Feb 21
A business should be ethical for a number of reasons
Customers prefer buying from ethical businesses
Legal controls in certain countries enforces ethical practices
What are considered unethical practices
Low wages - below minimum wage
Health and safety working environment
Why are some business unethical
As business are have profit objectives, some businesses may overlook welfare of workers and consumer well-being in order to reduce cost to increase profits.
How does businesses behave unethically to consumers
Some businesses mislead consumers on price and quality of products, while some include hazardous materials in products or faulty components that may not be safe to use.
How does government prevent unethical business practices
They do so by imposing taxes and fines, suspending its business operation or closing the business. Most governments have legal controls in place for businesses to comply. However, in some countries, grants and subsidies are provided to help lower cost to encourage businesses to operate ethically.
Each country have different legal controls. As such, many large businesses may take advantage of certain lapse in policy in certain countries that may enable them to operate unethically.
How does pressure groups promote ethical practices