Likewise, bad ethics can lead to bad business results. For example, many employees
can develop negative attitudes if they perceive a difference between their own values and the
values stated or implied by an organization’s actions. In such environments, employees
often act to defend themselves against anticipated punishment or retaliate against poor
treatment. A bad ethical environment destroys employee commitment to organizational goals and objectives, creates low morale, fosters poor performance, erodes employee
involvement in corporate improvement initiatives, and builds indifference to the organization’s needs.