The Cost of Illegal Business Practices
研究发现,企业因非法行为被定罪后,资产回报率和销售回报率显著下降,且多次定罪比单次定罪损害更大;经济后果在定罪数年后才显现,可能导致管理层低估风险而继续违规。
The article focuses on the consequences of illegal business practices. It states that the price paid for illegal corporate activities often is heavier than just court-imposed fines. It mentions that firms convicted for wrongdoing suffered significantly reduced return on assets and return on sales, possibly as a result of customer rejection of those firms, or increased cost of business as a result. It comments that multiple convictions would be more harmful for an organization's finances than a single conviction.It states that economic downturns as a result of violations would manifest several years after the conviction, which may result in future violations as management does not see an immediate negative impact as a result of their actions.