BUSA 3000 Chapter Notes - Chapter 4: Corporate Social Responsibility, Financial Statement, Foreign Corrupt Practices Act

• School: GSU
• Department: Business Administration--Busa
• Course: BUSA 3000
• Professor: Maria Luiza Pinho

Document Summary

Ethics, corporate social responsibility, sustainability, and governance in. Violating laws and regulations has obvious legal consequences: customers, governments, and the news media demand ethical behavior. Exports of legitimate products must compete with trade in counterfeit goods: direct investment. Firms avoid investing in countries known for widespread intellectual property violations: company performance. Piracy and counterfeiting undermine the sales, profits, and strategies of firms that produce legitimate products. Business costs rise because the brand value of pirated goods can fall over time and companies must invest more to market their products and combat illicit competitors. Companies avoid doing research and development in countries beset by illegal copying of intellectual property: tax revenues. Pirates usually don"t pay taxes, which, together with reduced legitimate business activity, hurts government tax revenues: criminal activity. Piracy and counterfeiting often encourage or are supported by organized crime: the natural environment. Intellectual property violators disregard environmental standards when producing illicit goods: national prosperity and well-being.