With the need to maximize profits, companies are under constant pressure to maximize profits any way that they can. Take the automaker Volkswagen for instance. Volkswagen gamed the software in nearly 600,000 diesel vehicles to pass emission tests. The emissions from the cars were almost 40 times the permitted levels of nitrogen oxides. Dishonest accounting factors led to the downfall of Enron and WorldCom. In fact, since 1980 more than half of the 10 largest corporate bankruptcies were the result of unethical business practices.
The question now is do businesses that resort to unethical business practices gain an advantage over their competition? A recent study showed that the stock price growth of 100 firms with the most ethical cultures outperformed the stock market and their competition by almost 300%. They had a lower turnover of employees and higher employee job satisfaction. All in all good ethics lead to good business as we see in the infographic below. What are you doing to breed good ethics in your business to help it succeed? Reply in the comments below.