The following sources were cited in SAP Digital Futures Issue 36: Let’s Be Clear: Transparency as a Strategic Issue.
In 2017, 28% of customers punished companies for bad behavior, a 9% increase since 2013.
1Raphael Bemporad, Liz Courtney, Grant Griglak, Naomi Heckroth, Chris Coulter, Christine De Groot, et al., Brand Purpose in Divided Times: Four Strategies for Brand Leadership (BBMG and Globescan), 2017, http://bbmg.com/wp-content/uploads/2017/10/BBMG_GlobeScan_BrandPurposeReport_2017.pdf.
Public reports of misconduct slash a company’s market value by an average of 41%.
2Jonathan M. Karpoff, D. Scott Lee, and Gerald S. Martin, “The Cost to Firms of Cooking the Books,” Journal of Financial and Quantitative Analysis, 43, September 2008, p. 581–612, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=652121.
A good reputation lowers the cost of doing business, attracts investors, and can justify higher prices.
3Azish Filabi and Jonathan Haidt, “Ethical Systems Design: What Smart Leaders Are Using to Improve Their Organizations (and the World),” World Economic Forum, January 3, 2017, https://www.weforum.org/agenda/2017/01/ethical-systems-design-what-smart-leaders-are-using-to-improve-their-organizations-and-the-world/.
Ethical leadership correlates with a nearly fivefold increase in return on assets.
1“Measuring the Return on Character,” Harvard Business Review, April 2015, https://hbr.org/2015/04/measuring-the-return-on-character.