The existence of an ethical
residual is precisely what makes it possible
for products that have a clear and persuasive ethically based brand to be priced at a
premium. Recognizing this, explicitly ethically based companies—for example, the
Body Shop and various fair trade ventures—
expend considerable resources to communicate to consumers their nonfi nancial corporate goals. Ethical residuals can also be
tangible assets: Charitable institutions such
as the American Red Cross and Greenpeace
USA have built sustainable business models
based entirely upon the creation, and reinvestment, of the ethical residuals that motivate charitable giving, and that over time are
capitalized in strong and enduring brands.