Pros and Cons of Ethical Issues in Business

Ethical issues in business include promoting conduct based on integrity to win the trust of the customers. It also includes empathetic decision making, compliance, and government consistent with a company’s core values.

The ethical issues facing businesses are accounting, social media, health and safety, technology, harassment, and discrimination.

Pros and Cons of Ethical Issues in Business

Pros of Ethical Issues in Business

  1. Build customer loyalty

When a business has ethical issues then the customers will be loyal to the business in that they will be faithful and the owner of the business will not find a hard time collecting the debts from the debtors.

  1. Enhances the company’s reputation

The customers will be able to talk good about the business to other people which will make them want to know more about the company hence increasing the number of customers which will, in turn, increase the sales of the business.

  1. Retain good employees

Most employees will like to work in an environment that is conducive to them. This environment will be created by the owner of the company and this will enable the company to build trust in its employees hence attracting more customers to the business which in turn increases the sales of the business.

  1. Positive working environment

When there is ethics in business, the employees will be able to work diligently and will be committed to their work and they will be produced which will enhance the efficient working of the company.

  1. No legal problems

Ethics in business will ensure that there are no legal problems in the business as the employees will not be involved in mistakes that involve legal issues hence the smooth running of the business.

Cons of Ethical Issues in Business

  1. Higher overheads

This will come in as the company will be required to train its employees on matters related to communication that will make them relate with the customers well hence it will be a cost on the side of the company.

  1. There is a possibility of false expectation

When there is ethics in the business, all the employees who come there may really want to be as good as expected which may make the company think that they are good people hence building trust in them that will turn out not to be the case.

  1. Higher costs

When there is ethics in business, the company will struggle to get goods that are of high quality from the suppliers who have a good reputation and these goods may be expensive and it may also not be easy to look for the suppliers.

  1. Lack of management support

The owner may have a lot of workload as he or she will be the only person to tell whether the services offered are good and this may make it hard for the other works to assist hence there will be no support on the side of management.


Ethical issues in a business are very important as they are the key issue as to why many customers will trade with the business hence all businesses are required to have ethics in their operations.

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