$3.$ How Does Being Good Pay Off?

How Does Being Good Pay Off?

Organizations are under increasing pressure to do the right thing and serve the public good, and there are a multitude of ways that organizations can be ethical and socially responsible. Although organizations should always consider ways to do this, these decisions often come at a financial cost and thus create dilemmas for organizational decision makers. This activity is important because it highlights the ways that being socially responsible is beneficial for organizations.

The goal of this exercise is to challenge your knowledge of research findings on how being ethical and socially responsible pays off for organizations.

Each statement represents how ethical and socially responsible behavior by a company affects various stakeholders. Read the statements and then match each term to the element of ethical or socially responsible behavior that it best represents.

Revenue Employees Profits Customers

Match each of the options above to the items below.

Consumers want to spend more money with companies that are socially responsible.

No answer

Socially responsible companies generate a significantly higher return$-$on equity than competitors.

No answer

Workers may be less likely to leave when their company is socially responsible.

No answer

Investors are increasingly seeking socially responsible companies to put their money into.