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UI Professors Co-Authored Ethics Study

To sway numbers-minded colleagues from disciplines such as finance and economics, business ethicists have strived to show that good ethics makes sense economically as well as morally. It isn't an easy thing to prove -- despite the obvious recent evidence that the marketplace can impose huge penalties for poor ethics. One of the latest attempts at establishing statistical validity comes from Marc Orlitsky, a lecturer at the Australian Graduate School of Management in Sydney. His forthcoming study, co-authored with two University of Iowa professors, analyzes 30 years' worth of corporate data and affirms a link between social performance -- which includes broader measures than ethics alone -- and solid financial performance. Using empirical data from other studies, the paper finds that companies' social responsibility affected their financial performances up to 83 percent of the time. The study was co-authored by FRANK SCHMIDT and SARA RYNES, professors of Management and Organizations at the UI. MARC ORLITZKY is a PhD graduate from the UI.


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