Chip's CPUs, a computer chip manufacturer, knowingly sold flawed chips and decided not to tell its customers of the possible problems. When it became public knowledge, however, the firm's stock price fell dramatically. This demonstrates the value that investors place on the ethical behavior of businesses.

Question

Quizplus · Accepted Answer

The perception of unethical business practices will cause profit-seeking, socially conscious investors to react to ethically unfavorable circumstances.

Chip's CPUs, a Computer Chip Manufacturer, Knowingly Sold Flawed Chips