PHIL 430 Exam 3 Business Ethics

What are the components of Deloitte's ethics program?

A chief ethics compliance officer to lead the program; policy and procedures, including code of ethics and professional conduct; extensive training program; integrity hotline.

Freeman Vs. Friedman

Freeman and Friedman have two very contrasting opinions on the goals and responsibilities of a business. Freeman supports the Stakeholder Theory in saying that anyone who has a stake/claim in the firm has the right to be treated as a participating determining factor in the direction of a firm. They are not just a means to the end. Friedman pretty much says the opposite. He believes that businesses have no responsibility outside of those who have ownership in the company. Freeman = Stakeholders Friedman = Shareholders

Why does a good philosophical argument look at and develop objections to the view it means to defend?

Because you can look at it from the opposite view so you can answer the questions that the people opposing you will ask.

How does creating shared values relate to capitalist goals?

Both have a end goal of generating revenue within a firm

How did a few industry outsiders get wind of the underlying frailty of mortgage bonds and the housing market prior to the 2008 crash?

Burry was the first investor and he began to realize that the futures of several companies he was investing in turned on a weird lending market, the subprime mortgage bond market. So he started reading the prospectuses of subprime mortgage bond offerings

What is a CDO?

Collateralized Debt Obligation- There are investors who can give cash up front so when the person who takes out a loan pays it back, the investors get a portion of it back.

What is the difference between creating shared value and corporate social responsibility?

Corporate social responsibility is usually a calculated move by a firm to follow political correctness and benefit a company's PR and Image. Shared value is naturally created through ethical business.

What legislation emerged in the aftermath of the housing crisis? What was its intent?

Dodd-Frank Act. Because the Great Recession of the late 2000s was due in part to low regulation and high reliance on large banks, one of the main goals of the Dodd-Frank Act was to subject banks to more stringent regulation.

Corporate Social Responsibility

Doing good deeds benefitting stakeholders in places where a company does business

In class we watched a video clip that included a visit to India by Mikael Ohlsson, CEO of IKEA. The clip addressed how IKEA's activities working with UNICEF and Save the Children in India (child labor, schools) opened the door for additional business opportunities in India. Please explain how...

1) launching an initiative to vaccinate mothers and children 2) launching an initiative to bring village women together to pool their savings and provide loans to members. 3) creating alternative learning centers for children unable or not permitted to attend government schools.

Why do millennials prefer TOMS to Nike?

1) mainstream allegiance to the Nike brand is more tied to elite athletes and individual success while allegiance to the TOMS brand is more tied to the idea of customer participation in the success of its mission. 2) people under 35 consider the creation of 'world-value' more important than creating exclusively shareholder value. 3) TOM's focus on creating shared global value in addition to shareholder value makes TOM's mission more attractive to millennials.

According to Freeman, what are the 3 main problems with the 'shareholder view'?

1) resistant to change, 2) Inconsistent with the law, 3) Inconsistent with overall ethics

Describe what happened in the Wells Fargo Fake Accounts Scandal. How did this happen?

5300 employees across the company were fired for secretly creating new bank and credit card accounts for customers without their knowledge. This happened because: 1) employees take a Friedman-style attitude to the issue of the social responsibilities of people in business. 2) people consider their work role to be distinct from their 'real' identities as parents, community members, etc. and, by doing so, avoid personal responsibility for what they do at work. 3) pressure to perform and aggressive performance goals cause employees to cheat out of concern for their position or job.

When were mortgage bonds available to trade?

1968

In the Wells Fargo scandal described by Kouchaki: A.) 5300 employees across the company were fired for secretly creating new bank and credit card accounts for customers without their knowledge. B.) Employees were demoted or fired for the widespread practice of opening off-shore accounts to allow clients to avoid paying federal income taxes. C.) Both answers are correct.

*A.) 5300 employees across the company were fired for secretly creating new bank and credit card accounts for customers without their knowledge.*

For Deloitte, trust is the cornerstone of it competitive advantage. Because of this, the company has put an ethics compliance program in place to safeguard that trust. According to Allen's essay, which of the following represent components of their ethics compliance program? A.) A chief ethics compliance officer to lead the program; policy and procedures, including code of ethics and professional conduct; extensive training program; integrity hotline. B.) A legal and ethics officer to ensure compliance with all relevant government regulations; a zero tolerance policy for unethical actions; highly visible demotion or employment termination of any offenders. C.) Annual corporate ethics review by an external oversight agency; integrity hotline with external monitoring by the oversight agency. D.) All of these answers are correct.

*A.) A chief ethics compliance officer to lead the program; policy and procedures, including code of ethics and professional conduct; extensive training program; integrity hotline.*

What unethical practice(s) was Standard and Poor's engaging in? A.) All of the above. B.) They were rating their own clients bonds. C.) They would give their clients AAA ratings for fear of losing their business D.) Their ratings were artificially propping up the price of mortgage bonds despite the dropping value of the underlying mortgage loans.

*A.) All of the above.* B.) They were rating their own clients bonds. C.) They would give their clients AAA ratings for fear of losing their business D.) Their ratings were artificially propping up the price of mortgage bonds despite the dropping value of the underlying mortgage loans.

What increased the riskiness of mortgage bonds that included subprime mortgages? A.) All of these answers are correct B.) Mortgage lenders did not thoroughly vet borrowers' income. C.) Borrowers with poor credit were granted mortgages. D.) After an initial sweetheart rate, subprime adjustable rate mortgage payments later increased substantially (as much as 200-300%).

*A.) All of these answers are correct* B.) Mortgage lenders did not thoroughly vet borrowers' income. C.) Borrowers with poor credit were granted mortgages. D.) After an initial sweetheart rate, subprime adjustable rate mortgage payments later increased substantially (as much as 200-300%).

Which of these, according to MacGregor, are among the recent factors that make "...it less possible for CEOs to skate through unscrupulous company behavior unscathed..."? A.) All of these answers are correct. B.) Activist investors have forced lead board members to pay more attention to ethics. C.) The public has grown more skeptical and less forgiving of unethical behavior. D.) Regulation and governance requirements have increased. D.) Modern media detects and publicizes unethical behavior more quickly and widely than past media. E.) Electronic internal communications often leave undeniable evidence of unethical corporate behavior.

*A.) All of these answers are correct.* B.) Activist investors have forced lead board members to pay more attention to ethics. C.) The public has grown more skeptical and less forgiving of unethical behavior. D.) Regulation and governance requirements have increased. D.) Modern media detects and publicizes unethical behavior more quickly and widely than past media. E.) Electronic internal communications often leave undeniable evidence of unethical corporate behavior.

According to Friedman, businesses cannot have social responsibilities because... A.) All of these answers are correct. B.) Corporate managers are merely the agents of the corporations or charitable institutions that employ them. C.) A corporate executive has responsibilities only to their employers. D.) Only people can have responsibilities and businesses aren't people.

*A.) All of these answers are correct.* B.) Corporate managers are merely the agents of the corporations or charitable institutions that employ them. C.) A corporate executive has responsibilities only to their employers. D.) Only people can have responsibilities and businesses aren't people.

According to Allen, the ROE (Return On Ethics) is high for business because... A.) All of these answers are correct. B.) Customers are increasingly requiring good business ethics from companies they are willing to become involved with. C.) Trust is increasingly vital to good business relationships. D.) The best workforce is attracted by companies with reputations for practicing good corporate social responsibility and good business ethics.

*A.) All of these answers are correct.* B.) Customers are increasingly requiring good business ethics from companies they are willing to become involved with. C.) Trust is increasingly vital to good business relationships. D.) The best workforce is attracted by companies with reputations for practicing good corporate social responsibility and good business ethics.

According to Kouchaki, one reason employees set aside their own ethical compass at work is... A.) All of these answers are correct. B.) Employees take a Friedman-style attitude to the issue of the social responsibilities of people in business. C.) People consider their work role to be distinct from their 'real' identities as parents, community members, etc. and, by doing so, avoid personal responsibility for what they do at work. D.) Pressure to perform and aggressive performance goals cause employees to cheat out of concern for their position or job.

*A.) All of these answers are correct.* B.) Employees take a Friedman-style attitude to the issue of the social responsibilities of people in business. C.) People consider their work role to be distinct from their 'real' identities as parents, community members, etc. and, by doing so, avoid personal responsibility for what they do at work. D.) Pressure to perform and aggressive performance goals cause employees to cheat out of concern for their position or job.

Together with UNICEF, IKEA helped address the problem of indentured servitude by... A.) Launching an initiative to bring village women together to pool their savings and provide loans to members. B.) Launching an initiative to vaccinate mothers and children. C.) All of these answers are correct. D.) Creating alternative learning centers for children unable or not permitted to attend government schools.

*C.) All of these answers are correct. * A.) Launching an initiative to bring village women together to pool their savings and provide loans to members. B.) Launching an initiative to vaccinate mothers and children. D.) Creating alternative learning centers for children unable or not permitted to attend government schools.

UNICEF ultimately accepted IKEA's offer to help fund UNICEF's program to get children in the carpet district into schools because... A.) All of these answers are correct. B.) IKEA shared UNICEF's holistic view that the root cause of the prevalence of child labor in the carpet belt was the underlying poverty, lack of education, and embedded social norms. C.) UNICEF believed IKEA was genuinely committed to the former's program of tackling poverty in the carpet belt by getting children into schools. D.) UNICEF believed the clout and credibility of a major regional carpet buyer would be a significant help in gaining local cooperation.

*A.) All of these answers are correct.* B.) IKEA shared UNICEF's holistic view that the root cause of the prevalence of child labor in the carpet belt was the underlying poverty, lack of education, and embedded social norms. C.) UNICEF believed IKEA was genuinely committed to the former's program of tackling poverty in the carpet belt by getting children into schools. D.) UNICEF believed the clout and credibility of a major regional carpet buyer would be a significant help in gaining local cooperation.

What does CDO stand for? A.) Collateralized Debt Obligation B.) Collaborative Devaluation Opportunity C.) Consolidated Derivative Option

*A.) Collateralized Debt Obligation *

How did Dr. Michael Burry become convinced of the risks associated with mortgage bonds? A.) He identified and researched every mortgage loan included within the bonds. B.) His connections at the SEC identified the risk and relayed this information to him. C.) He overheard a conversation in the men's room at an annual financial conference. D.) None of these answers are correct.

*A.) He identified and researched every mortgage loan included within the bonds.*

What personal issue plagued Mark Baum throughout the movie and caused him to feel guilty about his work on Wall Street? A.) His brother's suicide B.) His wife left him for the Chairman of Goldman Sachs C.) His sister lost her house in the housing market crash D.) All of the above

*A.) His brother's suicide*

IKEA believed the best approach to eliminating child labor among suppliers was... A.) None of these answers are correct. B.) Lobbying for Congress passing the Child Labor Deterrent Act, which would block the US import of goods made with forced or indentured child labor. C.) Corporations building schools in the carpet belt. D.) Customer boycotts of retail products produced by suppliers using child labor

*A.) None of these answers are correct.* *--probably should find out what is right and put it here*

Friedman describes a corporate executive acting in a way not in the interest of their employers (i.e., socially responsibly) as... A.) Taxation without representation. B.) Impossible, given corporate oversight. C.) Treason. D.) All of these answers are correct.

*A.) Taxation without representation.*

Which of these, according to Porter & Kramer, are signs that creating shared value is possible? A.) The blurring of the boundary between successful for-profits and non-profits. B.) All of these answers are correct. C.) The impressive success of social media companies.

*A.) The blurring of the boundary between successful for-profits and non-profits.*

IKEA decided not to join the Rugmark Consortium, which labeled rugs as 'made without child labor' to assure customers of that fact because... A.) They believed there was no possible monitoring process that could insure these rugs were made with absolutely no child labor. B.) None of these answers are correct. C.) They believed Rugmark to be a corrupt organization. D.) They believed it impossible to eliminate child labor among suppliers.

*A.) They believed there was no possible monitoring process that could insure these rugs were made with absolutely no child labor.*

The Separation Fallacy is... A.) The mistaken claim that ethics is irrelevant to business decision making. B.) All of these answers are correct. C.) The mistaken claim that knowing what is the morally right thing to do implies anything about what business decisions are correct. D.) The mistaken claim that business decisions have neither ethical content nor any implicit ethical point of view.

*B.) All of these answers are correct.* A.) The mistaken claim that ethics is irrelevant to business decision making. C.) The mistaken claim that knowing what is the morally right thing to do implies anything about what business decisions are correct. D.) The mistaken claim that business decisions have neither ethical content nor any implicit ethical point of view.

The authors use the example of Nespresso (Nestle) to demonstrate that... A.) Outsourcing is an inefficient business model. B.) Commoditizing suppliers discourages product quality and supplier productivity, instead of maximizing profits. C.) Globalization ultimately prevents the development of shared value. D.) All of these answers are correct.

*B.) Commoditizing suppliers discourages product quality and supplier productivity, instead of maximizing profits.*

According to Porter & Kramer, company success and social progress are inherently in conflict in a capitalist economy. A.) True B.) False

*B.) False*

Friedman believes taxation to advance public goods is never justified. A.) True B.) False

*B.) False*

Friedman calls on corporate executives to refrain from cloaking their self-interested actions in a justification of 'social responsibility' because, according to Friedman, such hypocrisy harms the foundation of a free society. A.) True B.) False

*B.) False*

IKEA's coordination with UNICEF as a means of dealing with the problem of child labor in the carpet belt was immediately appreciated by its customers, its store associates, and the western press. A.) True B.) False

*B.) False*

Unilever's Sustainable Living Plan consists in a rejection of capitalism in order to address the interests of its non-shareholder stakeholders. A.) True B.) False

*B.) False*

Patagonia's 'Don't Buy This Jacket' campaign was... A.) A consequence of Patagonia's mission of using business to help save the planet. B.) Part of Patagonia's initiative to get customers to join the company in consuming more responsibly. C.) All of these answers are correct. D.) An expression of founder Yvon Chouinard's view that capitalism is on an unsustainable path.

*C.) All of these answers are correct. * A.) A consequence of Patagonia's mission of using business to help save the planet. B.) Part of Patagonia's initiative to get customers to join the company in consuming more responsibly. D.) An expression of founder Yvon Chouinard's view that capitalism is on an unsustainable path.

Sebastian Buck suggests that TOMS is more popular among millennials than Nike because... A.) Mainstream allegiance to the Nike brand is more tied to elite athletes and individual success while allegiance to the TOMS brand is more tied to the idea of customer participation in the success of its mission. B.) TOM's focus on creating shared global value in addition to shareholder value makes TOM's mission more attractive to millennials. C.) All of these answers are correct. D.) People under 35 consider the creation of 'world-value' more important than creating exclusively shareholder value.

*C.) All of these answers are correct. * A.) Mainstream allegiance to the Nike brand is more tied to elite athletes and individual success while allegiance to the TOMS brand is more tied to the idea of customer participation in the success of its mission. B.) TOM's focus on creating shared global value in addition to shareholder value makes TOM's mission more attractive to millennials. D.) People under 35 consider the creation of 'world-value' more important than creating exclusively shareholder value.

Porter & Kramer claim that close ties between businesses and communities that used to exist between better businesses and their communities have been weakened by... A.) An increase in unethical business managers. B.) A decrease in investor oversight. C.) An increase in businesses' reliance on outside vendors, outsourcing and offshoring. D.) All of these answers are correct.

*C.) An increase in businesses' reliance on outside vendors, outsourcing and offshoring.*

According to Porter & Kramer, business is especially suited to advancing social progress because... A.) Business people are more intelligent than politicians. B.) Governments are inherently inefficient. C.) Business is often more effective than governments and non-profits at marketing that motivates customers to embrace products and services that create societal benefits. D.) None of these answers are correct.

*C.) Business is often more effective than governments and non-profits at marketing that motivates customers to embrace products and services that create societal benefits.*

Blake Mycoskie founded TOMS because... A.) None of these answers are correct. B.) He had had a string of unsuccessful strictly for-profit business start-ups. C.) He believed a company could do good by doing well ($). D.) Seeing children too poor to own shoes made him believe that there are times we must sacrifice doing well ($) to do good.

*C.) He believed a company could do good by doing well ($). *

The Integration Thesis says that... A.) Every business decision has some ethical content or implicit ethical view. B.) All of these answers are correct. C.) Not only do most business decisions have relevant ethical considerations but that most ethical decisions have some business considerations. D.) While most business decisions have some ethical content, or implicit ethical view, business considerations are irrelevant to most ethical decisions.

*C.) Not only do most business decisions have relevant ethical considerations but that most ethical decisions have some business considerations.*

According to Freeman, The Open Question Argument proves that... A.) Most questions about business can be answered without considering ethical principles. B.) Ethics is only rarely relevant to business decisions. C.) There is some ethical content to almost every business decision. D.) None of these answers are correct.

*C.) There is some ethical content to almost every business decision.*

Freeman's view of corporate responsibility holds that managers have a fiduciary responsibility to stakeholders other than shareholders because... A.) ...communities' interests are always more important than shareholders'. B.) ...shareholders may not know what decisions will maximize profits. C.) All of these answers are correct. D.) ... no one stakeholder stands alone in the process of value creation.

*D.) ... no one stakeholder stands alone in the process of value creation.*

When Freeman says that the shareholder theory of corporate responsibility is not consistent with the law, he means that... A.) Managers who follow the shareholder theory of corporate responsibility are more likely to break the law in an effort to maximize profits. B.) All of these answers are correct. C.) The shareholder view of corporate responsibility is illegal. D.) Shareholder theory doesn't take into account corporate executives' responsibilities to non-shareholder stakeholders as that responsibility is enshrined in law.

*D.) Shareholder theory doesn't take into account corporate executives' responsibilities to non-shareholder stakeholders as that responsibility is enshrined in law.*

Friedman believes calling upon stockholders to require corporations to exercise social responsibility is... A.) Preferable to corporate executives exercising social responsibility. B.) Ineffective. C.) None of these answers are correct. D.) Undemocratic, because it amounts to some shareholders trying to force their will on other shareholders.

*D.) Undemocratic, because it amounts to some shareholders trying to force their will on other shareholders.*

Which of the following are issues Nike believes must be addressed if its business is to be sustainable and profitable? A.) Water conservation B.) Climate change C.) The needs of athletes D.) Contract factory workforce conditions E.) All of these answers are correct.

*E.) All of these answers are correct.* A.) Water conservation B.) Climate change C.) The needs of athletes D.) Contract factory workforce conditions

Stakeholders

A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.

What is a subprime mortgage?

A subprime mortgage is a type of loan granted to individuals with poor credit scores. They have higher interest rates because of the individuals credit score.

Shareholders

Any person, company or other institution that owns at least one share of a company's stock. Because shareholders are a company's owners, they reap the benefits of the company's successes in the form of increased stock valuation. If the company does poorly, however, shareholders can lose money if the price of its stock declines.

What is Freemans account of the nature and origin of managerial capitalism?

Freeman believes it is outdated and does not benefit society

What are the only constraints on Management's duties to shareholders?

Governmental Bureaucratic fist (The Law) sometimes prohibits firms from maximizing profits

What was the nature and origin of Ikea's child labor scandal? Why was Ikea's business model set up for scandals like the formaldehyde scandal? How did Ikea solve this problem

Ikea used a 3rd party supplier for their products overseas. In these places laws did not prohibit child labor, but in the places they sold the furniture there were calls for change. The same thing can be said about formaldehyde, not illegal production methods but unethical. The company solved these issues by considering the interests of stakeholders and not just shareholders by changing means of production

What's a NINJA loan?

It stands for No Income No Job No Assets. Most lenders require the borrower to show a stable stream of income or sufficient collateral, a NINJA loan ignores the verification process.

In class we watched two short videos that captured remarks by Jonathan Atwood, VP of Communications and Sustainable Living, and Paul Polman, CEO of Unilever. They discussed benefits of paying attention to stakeholders' interests and needs, especially consumers, employees, and communities. What are they?

Jon Atwood: The cost of inaction is greater than the cost of action. Brands with a purpose grow faster and lead to sustainable growth. Paul Polman: Making internal changes that help the purposes of your companies will lead to great growth.

Laissez Faire Capitalism

Laissez Faire Capitalism is an economic system in which transactions between private parties are free from government intervention such as regulation, privileges, tariffs and subsidies.

Fiduciary Responsibility

Maximizing profitability for investing shareholders - Friedman thinks that the only duties that a company should have are to maximize its profits... so Friedman believes business management has fiduciary duties only to shareholders and no one else

How does Patagonia address stakeholders' interests and needs? Nike?

Patagonia creates products that are environmentally friendly and reuse worn out gear which was bought by customers to be sustainable. And they cater to the customers needs because they create functional products for rock climbing, biking etc. Nike was known for sweatshops and bad working conditions but publically made a statement saying they'd change. And since that they have been changing and release corporate social responsibility reports. They initially struggled and showed that to the public but now they're killing it.

Shared Value

Policies and practices that both advance the competitiveness and well being of a firm while also promoting positive change in the economic and societal cultures of community The central premise behind creating shared value is that the competitiveness of a company and the health of the communities around it are mutually dependent. Recognizing and capitalizing on these connections between societal and economic progress has the power to unleash the next wave of global growth and to redefine capitalism.

What are the pro's and con's of banking regulations?

Pros: Less likelihood of financial collapse, Cons: Rise of Global finance imbalances

What are Three ways to create shared value?

Reconceiving products and markets, redefining productivity in the value chain, building clusters and framework conditions

What are the responsibility principle, the separation fallacy, and the open question argument?

Responsibility Principle: Most people want to, and actually do and should do: accept responsibility for their effect of their actions onto others Separation Fallacy: Ethics is relevant to business. Open question arguments: 1) if this decision is made, for whom is value added and for whom is value destroyed 2) Who is harmed and who is benefited 3) Whose rights are enabled and whose values are considered 4)What kind of person will I become if I make this decision

What was the point of the EpiPen and DaraPrim examples

Shows how self interest in the medicine industry led to CEOs jacking up prices which left many unable to afford their medications necessary to live a good life.

The Prisoner's Dilemma

Shows people act self interestedly when faced with a dilemma and would rather help themselves than show mercy on others. Challenges capitalism by saying firms do not consider others well being when making business decisions The prisoner's dilemma is a standard example of a game analyzed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interests to do so. Two members of a criminal gang are arrested and imprisoned. Each prisoner is in solitary confinement with no means of communicating with the other. The prosecutors lack sufficient evidence to convict the pair on the principal charge. They hope to get both sentenced to a year in prison on a lesser charge. Simultaneously, the prosecutors offer each prisoner a bargain. Each prisoner is given the opportunity either to: betray the other by testifying that the other committed the crime, or to cooperate with the other by remaining silent. The offer is: If A and B each betray the other, each of them serves 2 years in prison If A betrays B but B remains silent, A will be set free and B will serve 3 years in prison (and vice versa) If A and B both remain silent, both of them will only serve 1 year in prison (on the lesser charge)

What is the purpose of a stakeholder analysis grid? What is a key shareholder?

The purpose of this is to identify different levels of shareholders and their needs and importance. A key stakeholder is someone with high interest and high power

How do Tesla, Walmart, Unilever, and Danone create shared value

They create shared value by maximizing profits while still striving towards sustainable inventions and practices to help conserve and save our environment.

The Tragedy of the Commons

Unregulated business leads to excessive displays of self interest and resource exploitation which is bad for everyone in the long run. Challenges capitalism by saying without economic regulation bad things will happen The tragedy of the commons is a term used in social science to describe a situation in a shared-resource system where individual users acting independently according to their own self-interest behave contrary to the common good of all users by depleting or spoiling that resource through their collective action.

What is a stakeholder analysis?

https://www.google.com/imgres?imgurl=https://upload.wikimedia.org/wikipedia/commons/thumb/7/77/Stakeholders_matrix.svg/250px-Stakeholders_matrix.svg.png&imgrefurl=https://en.wikipedia.org/wiki/Stakeholder_analysis&h=248&w=250&tbnid=cX5PC08uaxAbSM:&tbnh=160&tbnw=160&usg=__imMMRBapq4ScqmTDRc4iAsmNjYE%3D&vet=10ahUKEwiQ94C46rPaAhXr6oMKHR6iA6cQ9QEILTAA..i&docid=4GKTk2-R1O7JjM&sa=X&ved=0ahUKEwiQ94C46rPaAhXr6oMKHR6iA6cQ9QEILTAA

How did mortgage bonds become riskier?

lower-priority, higher-interest tranches—of an MBS are/were often further repackaged and resold as collateralized debt obligations.

What is "Return on Ethics (ROE)?"

the premise that ethical decision-making can lead to strong performance and competitive advantage, while unethical decision-making leads to very different outcomes