Recently, Silky Soft Inc., a clothing and soft goods company agreed to adopt higher ethical standards with respect to contract manufacturers producing their goods. Company leadership agreed this was a good approach to avoid the U.S. government's intervening and creating new laws to force the entire industry to work only with foreign manufacturers who operate with high ethical standards. This was sensible strategy on the part of the clothing and soft goods industry.

Question

Recently, Silky Soft Inc., a clothing and soft goods company agreed to adopt higher ethical standards with respect to contract manufacturers producing their goods. Company leadership agreed this was a good approach to avoid the U.S. government's intervening and creating new laws to force the entire industry to work only with foreign manufacturers who operate with high ethical standards. This was sensible strategy on the part of the clothing and soft goods industry.

Quizplus · Accepted Answer

A business should manage ethically for many reasons. Managers will often evaluate the cost of ignoring poor ethical behavior in light of the fact that government will often create laws that punish companies that misbehave.