Can corporations maximize profits by being ethical?
Corporations producing more ‘ethical’ products are not going to solve our problems of over-consumption. It is becoming more common to believe that corporations can maximize profits by doing good. Particularly in the U.S., there is a cult of technology where people remain faithful that innovative firms will solve all the worlds problems. Is it possible that ethical corporate behaviour can co-exist with the goal of profit maximization? In the HBR article Ethical Capital Is Capitalism’s New Cornerstone, Umair Haque writes; 20th century capital isn’t fit for 21st century prosperity. Today, long run productivity gains aren’t just a function of being able to utilize machines, cash, or skill — but being able to utilize all the above without damaging the natural world, abusing the powerless, and taking from the future. Understanding ethical capital is what lets companies, countries, and people get there. It is the cornerstone of authentic prosperity, achieved without hidden costs, invisible su
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