To What Extent Does Co-Op Benefit from Being Ethical?

463 Words2 Pages
If a business is being ethical, then it is following moral guidelines which govern good behaviour. Co-op can benefit from being ethical to some extent. It would be good for co-op to be ethical as it gives them a very good image, and can improve their reputation. They are likely to get more customers from this because many people choose to buy products and services from businesses who are ethical. If they get more customers, then sales will increase and their overall profit may increase because of this. The co-op may also benefit from being ethical, as it makes the business different from their rivals and competition. It gives the business a unique selling point, and the co-op can use this to their advantage. They have an opportunity to increase their prices as the customers may be willing to pay more for products if the business has good morals. Co-op, however, can experience disadvantages from being ethical. A main disadvantage is that prices of products and services may have to rise. This is because some ethics have a cost, for example the co-operative bank have had to turn away business worth £1.4bn since they introduced their ethical policy, this means average unit costs will be high as they are receiving less profit. Something else that may cost more for co-op is if they try and reduce green house emissions when they are producing products or delivering services. This can be very expensive and they will have to compensate by increasing the prices of the products. Another disadvantage is that if they promise too much, they could disappoint customers if they don't manage to accomplish them. This could bring very bad reputation onto the business, and co-op could see a drop in sales due to customers not wanting to purchase anything from co-op as they aren’t reliable. Overall I think co-op benefits from being ethical to a large extent. However it depends

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