Companies who fail to follow high ethical standards often see their stock prices drop.

Question

Quizplus · Accepted Answer

There is evidence to suggest that companies who engage in unethical behavior, such as fraud or corruption, may see a decline in their stock prices due to loss of investor trust and confidence. Additionally, companies with a strong reputation for ethical business practices may attract more socially responsible investors, which could positively impact their stock prices.

Companies Who Fail to Follow High Ethical Standards Often See