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MAKING RIGHT VS.

WRONG DECISIONS
Everyone benefits
When everyone in an organization manages right-versus-wrong situations correctly— obeying the law and the
company's published code of conduct—all stakeholders benefit.

GOOD REPUTATION
The company builds a reputation for
fair employment practices, social and
environmental responsibility, and
fiscal integrity. MORE CUSTOMERS BUY
Customers (whether individual
consumers or other businesses)
want to buy more from companies
with good reputations.

ECONOMY THRIVES
Economies thrive on trust.
They sputter when trust
evaporates, as has happened
during recessions triggered in
part by unethical practices by
business or government.
SOCIETY BENEFITS

SUPPLIERS WANT
TO DO BUSINESS
Suppliers want to do business
with companies that have a
good reputation.

HAPPY EMPLOYEES
Employees take pride in
working for a reputable
company. They also trust one
another to "do the right
thing," so they share more
information and ideas—which GOOD FISCAL
drives innovation. PERFORMANCE
Investors benefit because the more
customers buy from the company, the
better its financial performance—thus
the greater the return on the investment.

© 2014 Harvard Business School Publishing. All rights reserved. Harvard Business School Publishing is an affiliate of Harvard Business School.

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