Item$10$

$4\mathrm{.}76$

points

Time Remaining $2$ hours $16$ minutes $32$ seconds$02$:$16$:$32$

eBookItem $10$

Time Remaining $2$ hours $16$ minutes $32$ seconds$02$:$16$:$32$

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 activity 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.

Profits Stock Price Revenue Employees Customers Interpersonal Relationships

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

An ethical scandal can cause a company's valuation to plummet.

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.

No answer

Companies with effective ethics and compliance cultures find their employees are less likely to retaliate against one another.