![]() Firms with strong reputations are known to outperform those with weaker reputations (e.g., Dunbar and Schwalbach 2000 Rose and Thomsen 2004). While a sense of fairness in the transaction or relationship can foster customer satisfaction and ultimately positive corporate reputation, disappointed customers either exit a relationship or, if switching costs are high, they may have to passively put up with poor service (Walsh et al. Interestingly, customers of service firms are reported to perceive a firm’s greed “as the most influential cognition that leads to a customer’s desire for revenge” (Gregoire et al. For shareholders seeking ever better returns, it may be seen as positive for employees who may potentially be facing redundancy, it is undoubtedly negative. The perception of corporate greed influences corporate reputation among different stakeholders, in different ways. Arguments and controversy will not fade away, especially during periods of strained economic growth. In contrast, there are those who argue that “greed is good” and that “Workers Should Be Very Thankful That Corporations Are So Greedy” (Dorfman 2013). Perhaps the depiction of greed in Martin Scorsese’s film “The Wolf of Wall Street” has done more to perpetuate the perception of greed in the financial sector than any particular news item. Experimental research has shown that bankers were indeed more dishonest when primed on their professional role (Cohn et al. It has been suggested that the business culture in the banking industry is such that it favors or at least tolerates fraudulent or unethical behavior. The financial sector has often been accused of greed, and there is evidence to show cases of such greed (e.g., Abrantes-Metz et al. These sentiments are reflected in the earlier 2011 “Occupy Wall Street” protest, which started in Canada and spread to the USA, fostering a similar situation among the “Indignant” movement in Spain and the Greek anti-cuts demonstrations, eventually spreading to many countries across the world. Whitehead Legislative Conference and Presidential Forum, 2015) and that if elected, he would end corporate greed (Indianapolis, IN 29 April 2016). For example, Bernie Sanders, the 2016 presidential hopeful who ran against Hilary Clinton on the Democrats ticket, has been a noteworthy campaigner in this respect, accusing Disney of greed, charging that the religion of the billionaire class is greed (Alfred K. Such actions raise the indignation of both customers and citizens alike and are increasingly being condemned by politicians and movements, in various countries. A survey conducted in 36 countries on behalf of Ernst & Young, reported by Norris ( 2013) in the New York Times, noted that, “Overall, 20 percent of the respondents said they knew of incidents at their own companies within the previous year that could be construed as cooking the books.” No industry or country has been immune. ![]() Corporate greed is reflected in various management stratagems that include cover-ups, large-scale bankruptcy, corporate repatriation to avoid taxes, indulging in fraudulent accounting, senior management paying themselves huge salaries and pensions while limiting health benefits and pension schemes pertaining to employees, and much more. 2016) sweatshops (e.g., Carty 2002) and pricing practices in the pharmaceutical industry (e.g., Check 2014), to mention just a few. These have included companies taking low-interest loans to undertake buybacks (Girouard 2018) automobile manufacturers who cheated to beat emissions tests (Holland et al. Corporate greed has received increasing attention in recent years with various stories hitting the headlines.
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