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).