What is the long-term impact of unethical business practices on product and service quality?

Question

What will be an ideal response?

Answer 1

Firms that produce better quality services or products can expect to earn a premium for that higher quality. They can also expect to grow and prosper over time because of their ability to create true value for customers. Firms that engage in deception, however, undermine the ability and competence of their employees and demean their relationship with external customers. The unfortunate message these firms send to their employees, who are also their internal customers, is that management views them as being less capable of producing quality services or products than their counterparts in ethical firms. Under these conditions employees are also less likely to be motivated to put forth their best effort. The message unethical firms send to their external customers is that their product or service cannot effectively compete with that of others and so they must engage in deception in order to be profitable. Employees of firms that attempt to profit by deceiving customers are less likely to create true value for customers through product or service improvements that can enhance the customers' experience. That erodes a firm's ability to compete now and in the future.