Managers are understanding good things happen to organizations that do the right thing and consequences come with cutting corners and doing the wrong thing.
Customers prefer dealing with organizations they trust. Having credibility provides a huge competitive advantage in generating a good will and customer loyalty. Additionally, ethical companies are also able to recruit and retain employees better because of higher morale related to having an ethical corporate culture.
Since 2007 Ethisphere has published an annual list of the Worlds Most Ethical Companies within each industry. They have also tracked the performance of the public companies that have made their list against the performance of the S&P 500. Ethisphere has found that companies that take ethics seriously enough to make their list, outperform the S&P 500 with better returns.
