Question

Why real estate investors believe that ethical behavior is essential to the profitability and sustainability of their investments?

Answer 1

Ethics plays a very important role in today's world. Being ethical help you to create a good public image. This image helps you to create brand value and goodwill.

A real estate investors believes that ethical behavior is essential for the profitability and sustainability of their investment. This is because there is a direct relationship between profit and ethics in the long run and investment in real estate is also long term. Having ethics behavior helps you to create good public image and gain confidence of the investor. This in turn leads to increase in investment and also increase in profit.

Ethics is also directly related to sustainability. A company making a loss and being involved in illegal activities, will be neglected by the investors. But a company which gives importance to ethics, even if it makes losses, investor will still invest in it because of its ethical image. They are confident about the company , as even they make loss ,they will not run away with the money. This provides sustainability investment and profitability to the company.