Making it Stick | Why has the increased attention to corporate scandals proven to be something of a mixed blessing?

Why has the increased attention to corporate scandals proven to be something of a mixed blessing?

On the one hand, the average investor can be forgiven for thinking that the business world is full of crooks whose only purpose is to make as much money as possible. Problems with product quality, poor customer service, and fraudulent financial reports with no admission of guilt paint a very negative picture. The response to this negative picture has been the creation of new rules and tighter controls that now represent a greater risk for organizations who fail to comply with the expected standard of behavior. On the other hand, ethics has become an issue that also positively impacts the business world. This sense of value results in increased commitment and reduced turnover, which means greater profits for the company.



Source: Ghillyer_Business Ethics A Real World Approach 2e

CSR | Corporate Social Responsibility 5 | Would the CSR policies of an organization influence your decision to use their products or services? Why or why not?

Would the CSR policies of an organization influence your decision to use their products or services? Why or why not?

Student responses will vary. Many people are aware and respond to organizations decision to act in a socially responsible manner by patronizing them. The consumers who are conscience of a corporation’s charitable donations, or environmentally friendly practices are very likely to have a positive impression of the company and therefore purchase items from them. On the other hand, some consumers simply care about the lowest possible price.


Source: Ghillyer_Business Ethics A Real World Approach 2e