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How Do Ethics Affect the Financial Results of a Company?


Companies with a strong ethical identity tend to maintain a higher degree of stakeholder satisfaction, positively influencing the financial results of the company, according to the Ethical Investment Research Service. Conversely, lack of personal and professional ethics can lead to negative financial results, as recently evidenced by the collapse of Wall Street firms. Risky loans and questionable business practices put many banking and insurance firms in a precarious position.

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