Which statement best aligns with research on ethics and corporate performance?

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Acting ethically tends to support better corporate performance over time. When a company behaves with integrity, it builds trust with customers, employees, investors, and regulators. That trust translates into stronger customer loyalty, easier access to capital, lower turnover, and fewer legal or compliance costs. Ethical practices also reduce the risk of scandals and fines, which can protect profits and create a more stable business environment. In short, the long-run financial benefits come from reputational advantages, improved risk management, and a more engaged workforce, all of which help the bottom line. While there can be some short-term costs or trade-offs in adopting ethical practices, the body of research generally finds a positive relationship between ethics and performance, making the statement about the bottom line improving the best fit.