Research Supports That There Are Many Potential Benefits of an Ethical

question 96

True/False

Research supports that there are many potential benefits of an ethical organization,including that there is a strong and consistent relationship between ethical performance and measures of financial performance.

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Definitions:

DuPont Formula

A method that breaks down the return on equity into three component parts—profit margin, asset turnover, and financial leverage—to analyze a company's financial performance.

Return on Investment

A financial metric used to evaluate the efficiency or profitability of an investment, calculated by dividing the profit from an investment by its cost.

Investment Centers

Divisions or departments within a company responsible for generating revenue and controlling costs.

Profit Centers

Parts of an organization that directly contribute to its profit through their operations and the successful management of their revenues and costs.