Question

What conclusion can managers make about the perceived tradeoff of doing well and doing good?

Answer 1

There is a very thin line between doing well and doing good. Doing good may be the company is doing just good enough to generate profits for itself. It may not be doing well when compared to its peers. For example a company and be generating a $2/share earnings and consider itself doing good. However, its peers in the industry may be delivering a $3/share earnings . Therefore, when compared to its peers the company is "not doing well", but in isolation its able to generate profits and can be considered as "doing good".