International Journal of Advances in Management and Economics (IJAME)

ISSN:2278-3369
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TitleBusiness Ethics-Does it Pay
AuthorUmesh Kumar
AbstractThis study investigates the UK and US companies who had codes of ethics/conduct/Principles and those who explicitly said they did not. This study relies on the data which was available from various secondary sources like Annual report of companies, Ratings given by different agencies to name a few. We divided companies into two cohorts – who had code of ethics and without it. We have done an extensive research and filtered companies from the list of 581 companies. We then tried to find relationship between financial and non financial parameters. We have tried to relate both and show its effect on the companies. The above figure clearly shows that the companies who are better able to manage its stakeholders i.e. Customers, employees and investors are better able to increase the financial impact in the form of increase of lower costs, premium price products etc. to name a few. The findings that we have got are also testimony to this fact. On the other hand, we have looked onto the
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