The Attitudes and Values on the Part of Business That Leads to Unethical Behaviours
(1) Affective: emotions or feelings;
(2) Cognitive: belief or opinions held consciously;
(3) …show more content…
In general, social pressure tends to boost corporate social performance while hurting financial performance. "Social pressure from government, NGOs, and activists has two kinds of effects," says Baron. "It leads firms to increase social performance. And social pressure tends to be penalized in financial markets." Among industrial companies, financial performance is negatively associated with social performance. That's because responsible behavior can be expensive, and there are no consumers to directly reward an industrial company. Owing to these mindsets of industrialist, they would prefer to reduce cost of productions like using cheap materials causing pollutions rather than investing hugely on new technologies that can reduce pollution and decrease their profitability at the same time.
One answer to the question of why business knowingly commits unethical actions is based on the idea that organizations often reward behaviors that violate ethical standards. Consider, for example, how many business executives are expected to deal in bribes and payoffs, despite the negative publicity and ambiguity of some laws, and how good corporate citizens who blow the whistle on organizational wrongdoing may fear being punished for their actions. Jansen and Von Glinow (1985) explain that organizations tend to develop counter norms, accepted organizational practices that are contrary to prevailing ethical standards. Indeed, governmental