从文献上看，大多数研究都热衷于理解良好的道德规范与良好的企业绩效之间的关系。事实证明，家得宝(Home Depot)、李维斯(Levi Strauss)、美体小铺(Body Shop)和巴塔哥尼亚(Patagonia)等公司一直在盈利，它们也有良好的道德操守的悠久历史(Handy, 2012)。然而，其他研究也清楚地表明，即使是在股市上，企业也表现出了社会责任，这是它们盈利的原因。到目前为止，还没有研究表明这两个变量之间存在负相关关系。
There is a saying that business ethics is actually a contradiction. This contradiction is observed in terms of morality and the profit pursuit involved. Eventually, when a company is encouraged to choose between the two, they would automatically go for profit than morality. The point here is – Is it possible to do a good business while still playing an ethical role?
The answer to this question is simple – businesses have the abilities to do and also act ethically (Handy, 2012). Majority of the businesses regard ethical behaviour as a long term strategic point for the company. Though this ethical behaviour does not pay them monetarily or punish them for not following so, it still gives them the chance to prove that their business is valuable. On a long term basis, it is always essential to display ethical behaviour as it adds competitive advantage to the business and presents the uniqueness of the ethical business over the other.
Taking the literature, most of the studies have become keen to understand the relationship between good ethics and also good corporate performance. Companies such as Home Depot, Levi Strauss, Body Shop, Patagonia have proved to be consistently profitable and they also have produce longstanding history of good ethical conduct (Handy, 2012). However, other studies have also clearly showed that businesses have displayed social responsibility even on the stock market and that is the reason for them to turn profitable. So far, no study has given a negative correlation between the two variables.
In addition to literary sources, there are other ways by which advantages of ethical conduct on business strategy can prove to be beneficial. Business is regarded as a cooperative activity where it calls for trust, fulfilment of promises, adherence to ethical standards and self interest among members. When any of these fail, the business will automatically collapse. A clear example is the long term breakdown of business specifically in war torn areas such as Lebanon and Afghanistan and also the business fluctuation in Buenos Aires or Los Angeles. This fluctuation mainly occurred because of distrust, riot, political uncertainty (Handy, 2012).
Whenever a business attempts to seek profit, it has to act rationally. This rational interest will automatically influence and instruct a person in every activity. Despite of the nature of term, rational activities consume excess costs but in turn, help the business achieve high profits. Business is all about healthy relationships and reputation where unethical business is completely prohibited. If a business decides to gain advantage of its own employees or any of the stakeholders (customers or suppliers), it will automatically lead to negative consequences and closure of company as stakeholders would show no interests. This clearly implies that good relationships can be established by a business only when ethical interests and behavior are displayed. All the stakeholders are focused on the firm’s ethical knowledge and adherence. It is also evident from this example that a business’s reputation lies in its behaviour. Internet sources have been good examples to explain the differences in good and bad corporate conduct (Handy, 2012). Majority of the people prefer to go with businesses that support justice and fairness and hence, these companies have the chances to make good profits and also earn competitive advantage in the market.