Some of costs associated with unethical behavior in organizations are government fines and penalties, legal and investigative costs incurred by the company, customer defections, civil penalties arising from class-action lawsuits and other litigation, the costs of providing remedial education and ethics training to company personnel, lost of reputation, the cost to shareholders in the form of a lower stock price, cost of taking corrective actions, higher employee turnover, administration costs associated with ensuring future compliance, and higher recruiting cost and difficulty in attracting employees
