Abstract
The article focuses on the consequences of illegal business practices. It states that the price paid for illegal corporate activities often is heavier than just court-imposed fines. It mentions that firms convicted for wrongdoing suffered significantly reduced return on assets and return on sales, possibly as a result of customer rejection of those firms, or increased cost of business as a result. It comments that multiple convictions would be more harmful for an organization's finances than a single conviction.It states that economic downturns as a result of violations would manifest several years after the conviction, which may result in future violations as management does not see an immediate negative impact as a result of their actions.
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