when a company acts in an ethically questionable manner, what types of problems are caused by...

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Question

when a company acts in an ethically questionable manner, what types of problems are caused by the organization and its customers?

Answer 1

Answer #1

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Organization may cause following problems if a company acts in an ethically questionable manner:

Downfall in earnings due to negative publicity.
Spoilt name and reputation of the company.
Investors will back down from the company which will affect the liquidity of the company.
Prosecution and conviction of employees and management engaged in unethical practices.

Customers:

Customers will be dissatisfied by the product. The organizations revenue will go down.
In case of untested or defective products customers may become sick and ill.
Customers will lose faith in the organization. This will impact brand loyalty.
Customers may become sceptic and will do more research and analyze other options rather than buying the products in good faith.

Answer 2

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