Ethical Considerations and ROI

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Ethical Considerations and ROI
1. Conducting market research is known to be costly, but why is it so difficult to calculate the cost of an investment?
In a competitive market, any investment can only be successful if it is efficient and it utilizes its assets in the wisest way possible. As a result of this simple economic fact, every decision and activity an organization comes up with hinges on the cost of investment. However, conducting market research and more so calculating the cost of an investment is quite difficult. The main reason why it is challenging is because it is quite difficult to quantify the values or information provided my market research. Other reasons that render calculating the cost of an investment difficult are; controversy on the dependence of cost of investment on the level and method of financing, problem of computing the cost of equity, problem of computing the cost of retained earnings and depreciation funds, problem of future costs compared with those in history, and the problem of weights (Sparkes, 200).
If it is difficult to substantially calculate the true cost of conducting market research, resulting in no objective evidence to support the contributions of that investment, then what are some reasons to still conduct the research?
Here are some of the reasons why it is still important to conduct market research regardless of how difficult it is to substantially calculate the true cost of conducting this research.

To begin with, MR allows one to identify the problem areas in the choice of investment. It also allows one to understand the needs and preferences of the existing clients and why they opt to use a certain good or service over others (Insights Association, 1). Finally, market research allows one to make well-informed decisions and come up with effective strategies.
2. Proverbs 14:15 states, “The simple believe anything, but the prudent give thought to their steps.” How does this relate to the concepts of data-driven decision making?
This verse relates to data driven decision making. When making a decision on investment, a wise investor will weigh with the utmost care and attention, all the available information regarding the choice of investment. However, a simpleton investor will believe everything that he/she hears or for that matter will not consider any information on his/her choice of investment. Therefore, before venturing into any investment, one should carefully consider any available information relating to the investment since this information will play a significant role in making the final decisions on the investment.
Works Cited
Association, Insights. “Calculating Return-on-Investment (ROI) for Research.” Insights Association, 15 Apr. 2015, www.insightsassociation.org/issues-policies/best-practice/calculating-return-investment-roi-research. Accessed 16 Aug. 2018.
Sparkes, Russell. “Ethical investment: whose ethics, which investment?.” Business Ethics: A European Review 10.3 (2001): 194-205.