1.
Do ethical practices affect a firm's s ability to develop brand as a source of competitive
advantage? If so, how does this happen? Can you think of brands that are a source of competitive
advantage at least in part because of the firm ethical practices?
Solution
Do ethical practices affect a firm's s ability to develop brand as a source of competitive
advantage?
Absolutely. Some firms conduct business ethically and while developing a brand have other
company overseas who act unethically and copy it for a much lower cost. This adversely impacts
their brand and competitive advantage.
If so, how does this happen? Can you think of brands that are a source of competitive
advantage at least in part because of the firm ethical practices?
Another example would be Nike who has it's brand affected as a result of using underage
children overseas in adverse labor conditions. This made some people protest their labor
practices and refuse to buy Nike products.
Ben & Jerry's Ice Cream - They are ethical by having a very environmental friendly company
and donating some profits to charity. This affect their brand and competitive advantage in a
positive way.