The ethical approach offers an opportunity for acceptable and sustainable resolution to a dispute as compared to legal interventions, which are mostly adversarial. Ethical approaches provide resolutions based on the moral obligations and responsibilities which consider fairness and equality. Our business responsibilities should not be limited to what is only prescribed by the law. This is because in some instances, the law may allow resolutions that are not entirely ethical.
Ethical considerations provide an opportunity to understand the nature of the dispute and handle it based on what is right. Thus ethics have a wider reach and capability to resolve issues that may not be covered by the law. Ethical consideration also provide basis for rational thinking.
For instance, consider a customer who has bought a bottle of nail polish but on reaching home and before opening the bottle, they realize that it was not the right color. The customer decides to bring back the bottle in exchange for the right color. In essence, the store owner is not bound by any legal basis to exchange the product however ethical considerations would oblige him to perform the exchange.