Here is the problem:

In the post-Enron environment, and with the enactment of the Sarbanes-Oxley legislation, many firms are proactively portraying themselves as being ethical. Ethical behavior is, for example, part of the Corporate Social Responsibility movement. This behavior includes many dimensions, from the ethical treatment of employees and the environment, to ethical financial reporting. Academic research has found a positive correlation between a firms reputation and its financial performance.

1. Do you feel that strong ethics makes good business sense?
2. Why do you think that there is a positive correlation between ethical behavior and successful corporate financial performance?