Final answer:
Ignoring ethical issues in business can lead to harming stakeholders, ruining the company's reputation, and could ultimately result in the business failing. Ethical behavior is key to sustainability and competitiveness in the marketplace.
Step-by-step explanation:
When a company ignores ethical issues or does not follow a clear ethical code, it runs the long-term risk of several negative outcomes. These can include hurting its customers and employees, putting itself out of business due to lost trust and dwindling patronage, ruining its reputation as word of unethical practices spreads, and tarnishing its brand, which can lead to a decrease in market value and stakeholder support. Unethical behavior in business can prompt a range of consequences from cultural sanctions, like being labeled negatively, to legal sanctions that may include fines or imprisonment.
Additionally, competition from ethical firms that offer better or cheaper products can drive the unethical business to a disadvantage in the marketplace. Companies often operate under codes of ethics to avoid such risks and to ensure they maintain professional standards that align with societal values and expectations.