Paper 2 · Business Ethics
Operating ethically can give an enterprise a competitive advantage because
Aethical firms pay no tax on their profits
Bethical trading lowers wage costs immediately
Cregulators exempt ethical firms from inspection
Dconsumers increasingly favour firms they trust
Explanation: Where two products are similar, buyers increasingly choose on how the seller behaves, so a reputation for fair dealing wins custom that price alone would not. It also attracts staff who want to work for such a firm, which lowers recruitment and turnover costs.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Specimen Paper, Q3