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
Source: Ghillyer_Business Ethics A Real World Approach 2e
