Corporate Performance Is Closely Linked to a Strong Ethical Commitment

In line with the international trend, Americans are holding the management of large public corporations to greater ethical accountability. The scrutiny covers a broad spectrum of stakeholders so that a company’s effect on its employees, customers, vendors, franchisees, the environment and the communities in which it operates is emerging as an important benchmark of corporate performance. At the same time, corporate directors and senior managers are paying greater attention to the importance of intangible corporate assets like a highly motivated workforce, trustworthy suppliers, a loyal customer base and, most important, a reputation for fair dealing. A number of researchers have investigated whether any connection exists between the social or environmental and the financial performance of a corporation.