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. Listed in the diagram are statements showing how ethical and socially responsible behavior by a company affects various stakeholders. Read the statements and then drag each term to the element of ethical or socially responsible behavior that it best represents Interpersonal Relationships Employees Profits Stock Price Revenue Customers Consumers want to Socially responsible spend more money companies generate An ethical scandal can cause a with companies that significantly higher 5- year returns on are socially company's valuation invested capital responsible to plummet Workers may be happier and less likely to leave when their company is socially responsible Companies with Investors are effective ethics and increasingly seeking compliance cultures socially responsible find their employees companies to put are less likely to their money into retaliate against one another