How can companies benefit from business ethics? : A study of business ethics in the baby nutrition market

Abstract: Abstract Problem: Increased information flow and augmented knowledge have together with increased competitiveness created restrictions for companies aiming not to consider the environmental and social aspects in their goals. Stakeholders have started to consider these aspects to larger extent recently. However, many companies do not see the opportunities with using an ethical approach, and whether they will benefit from it. Purpose: The purpose of the thesis is to examine how companies can benefit from practicing business ethics within the organizations, by comparing theoretical studies and empirical findings. Method: Due to the purpose, a qualitative method approach was chosen. Data were collected through semi-structured telephone interviews with all respondents. The selection of interviews consist of the three largest actors on the Swedish baby nutrition market; HIPP, Nestlé, and Semper. Conclusion: Companies benefit from applying an ethical approach, in terms of environmental and social goals into the organization. Ethics is still a complex concept, with several definitions. Companies may use the TBL model for their implementation of the two additional aspects, to make it more concrete. The ethical approach includes work beyond what is regulated and legislated. The motivational factors for companies applying ethics vary, nevertheless the stakeholders’ interest for the company increase with environmental and social aspects included in the goals. To evaluate the ethical standpoint it is important for companies to verify whether their approach is correctly made and if it accurate received. Evaluating an ethical approach is however, difficult to make due to the complexity of the concept and its intangibleness.