ACCT 001 Lecture Notes - Lecture 32: Internal Control, Business Ethics, Nepotism
Document Summary
The issue of drawing and keeping investors is a critical one for ceos, and gaining investors" trust is vital for sustaining financial stability. Customer satisfaction is one of the most important factors in successful business. Investors today are increasingly concerned about the ethics, social responsibility, and reputation of companies in which they invest. Investors recognize that an ethical climate provides a foundation for efficiency, productivity, and profits, while negative publicity, lawsuits, and fines can lower stock prices, diminish customer loyalty, and threaten a company"s long-term viability. Investors look not only at the bottom line for profits or the potential for increased stock prices or dividends, but also for any potential flaws in the company"s performance, conduct, and financial reports. Thus, many executives spend considerable time communicating with investors about their firms" reputation and financial performance and trying to attract them to the company"s stock. strategy.