When ethical lapses such as the 2015 incident with Volkswagen happen, what is lost?
A)trust of society.
B)conﬁdence of shareholders, employees, suppliers, and customers.
C)market valuation.
D)reputation of the ethically challenged company.
E)All of these choices are correct.

Question

Quizplus · Accepted Answer

When ethical lapses such as the 2015 incident with Volkswagen happen, all of the choices listed are lost. Trust of society is lost as the public becomes wary of the company and their practices. The confidence of shareholders, employees, suppliers, and customers is lost as they question the company's values and leadership. Market valuation can be negatively impacted as customers and investors may choose to avoid the company's products and stock. The reputation of the ethically challenged company is damaged, which can have long-term effects on the company's standing in the industry and its ability to attract and retain talent.

When Ethical Lapses Such as the 2015 Incident with Volkswagen