Does Ethical Behavior Maximize Profitability

question 30

Multiple Choice

Does ethical behavior maximize profitability?

• A) Yes, there is concrete evidence that ethical behavior maximizes profitability.
• B) No, there is concrete evidence that unethical companies outperform ethical companies.
• C) Although there is no guarantee that ethical behavior pays in the short or long run, there is evidence that the ethical company is more likely to win financially.
• D) There is strong evidence that ethical behavior pays financially in the long run, but not in the short run.

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Definitions:

Merit Pay Plans

Systems that attempt to link pay to performance on white-collar jobs.

Whole Foods

An American supermarket chain specializing in organic and natural foods.

Pay Secrecy

A policy or practice where the details of employees' salaries are not disclosed or discussed openly within an organization.

Profit Sharing

The return of some company profit to employees in the form of a cash bonus or a retirement supplement.