How Can an Ethical Culture Have a Direct Effect on the Bottom

question 28

Essay

How can an ethical culture have a direct effect on the bottom line of an organization?

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Definitions:

Book Value

Represents the net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Fixed Assets

Long-term tangible assets, such as buildings and machinery, used in operating a business and not expected to be consumed or converted into cash within a year.

Dividend Discount Model

A method used to estimate the value of a company's stock by discounting predicted dividends to present value.

Constant-Growth

A valuation model assuming a steady rate of dividend growth for a stock.