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MGT 602 – Legal and Ethical Aspects of Management
Exercise No. 1
Read and analyze “Paying the Piper: An Empirical Examination of Longer-Term Financial Consequences of Illegal Corporate Behavior,”by Baucus, Melissa S.; & Baucus, David A.Academy of Management Journal, Feb1997, Vol. 40 Issue 1, p129-151. 23p.
Required:
· One-page summary of the above article
· Answers to the following questions which must be addressed adequately:
a) What financial impact does illegal corporate behavior have on a company?
b) How long does a company feel the impact of illegal behavior?
c) How does the market react to corporate illegal behavior?
What are the financial costs of violating the behavior?
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