Why Businesses Can Be Both Ethical and Profitable Without Guilt
Ethics and sustainability are hot topics. And it's about time! For several years now, huge groups from H&M to Marks & Spencer have pushed ethical initiatives to the top of their priority list, using sustainable materials, encouraging fair-trade and reducing the use of harmful chemicals in production. This has created a trend around sustainability and given a voice to small ethical businesses fighting to be heard to change the world positively. But people still often ask us: can you be ethical and still turn a profit?
Our answer is: absolutely! Whether you run a large scale retail venture or a small ethical label or a mindful business, there is absolutely no shame is making your business profitable.
Here are 3 essential reasons why businesses can be both ethical and profitable, without reason to feel guilty about it.
1) Running a fair business costs money...
To run any business properly, you need financial resources. They will allow you to survive in this fast-paced world. Good ethics dictate that any work deserves to be paid accordingly. HR is one of the biggest costs along with accounting, rent, utility bills and more... If you want your ethical business to last, you can’t turn a blind eye to the financial aspect – as dull as it sounds. What separates ethical businesses from the rest of the crowd is that money is not the focal point and is used responsibly (often for greater good).
2) ... Which justifies higher prices
There’s no way around it. Ethical products cost more than the norm. But that is because the norm should never have been so cheap in the first place. The good news is, conscious customers understand these reasons and don't argue the prices.
It costs more to produce quality, local, handmade/homemade, fair-trade products and goods. But ethical businesses are always transparent about where the money goes. It's only fair that your ethical business should get a profit to keep doing the good work.
3) Ethical companies can both give back and keep some
Being profitable means your company is able to support communities, invest in green tech, or simply give back.
But ethical businesses must also keep some of the profit for their own costs and expansion, encouraging the new norm of mindful business in the near future. Profits allow them to invest in human resources, improve the welfare of employees and artisans, reach and educate more consumers through marketing and public relations - and set a new example of how profit should be used.
It is a fact that consumers are growing more conscious, and it's good news. A ‘less is more’ mindset is slowly settling in a world that has known over-consumption for so long. It is our hope that future generations will only know ethical, transparent and green businesses. And that these businesses will turn profits without this being to the detriment to their workers or the planet.
As a group humans must think of business in terms of long term sustainability. No matter the size of your company, good ethics mean good business. Ethical businesses must feel the confidence to combine being socially responsible with making a profit without shame or guilt.
Do you need help with your ethical business? At Dare PR, we only promote businesses doing good for our planet and its people. If you want to hear more about our services, give us a shout here.