What is the essence of the consumers’ willingness to punish unethical behavior?
The findings also suggested that participants felt that companies that they perceived to be unethical should be punished by earning less than normal profits. Which aligns with the findings of Creyer and Ross’ study. However, only 1 participant would stick by their belief if an unethical firm were to lower their price, whereas all the other participants would be willing to purchase from an unethical firm if they lowered price. This does, however, suggest by paying a lowering price, firms are being punished financially, as otherwise, they would see a decline in demand.
Participant 3: “I would most likely do so because it is already bad at the moment and to regress even further would be devastating to see. Therefore, I would feel like it is sort of my fault because I am not doing anything to change things.”
These outcomes are important as they attract attention to the fact that businesses need not only to evaluate stakeholder desires, but they also foresee the potential effects of not complying to stakeholder pressures. This means that for organizations, such as Nike stakeholder perspectives are integral to customer perception. This finding also echoes Porter and Kramer’s belief that managers increasingly see themselves in a perplexing situation, finding themselves situated between individuals demanding higher levels of ethical actions and shareholders are putting pressure to maximize profits.