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The economy

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(1) What is the author's argument about the relationship between integrity and economic performance?
First, integrity refers to honesty, character, soundness of ethics, and wholeness. If we consider wholeness in some detail then, integrity refers to perceptions by others of values, principles, expectations and consistency of action. Anna Bernasek refers to these perceptions of integrity when she says that companies can do well by doing 'good'. This argument is further amplified in her book "The economics of integrity" where she feels that firms that are committed to integrity will become more profitable. She explains the relationship between integrity and the ability of companies to be profitable in several different ways. For instance, she points out the increasing need for trust in business relationships. She illustrates the issue of trust with the help of examples like how the ATM system depends on trust among several parties. She also shows how the trust between several parties is essential for the milk industry to run successfully.
(2) What examples does she present to support her argument?
Anna Bernasek uses the example of Toyota to explain how the company rose to frame because of its integrity and how it sacrificed integrity in its urge to become more profitable. The result was disastrous and the firm hit the pothole of loss.
The example of Toyota was appropriate because it made its reputation and built a successful car business by continuously concentrating on quality for more than ten years. Systematically, Toyota built the cars that were appreciated by ...

Solution Summary

This answer provides you an excellent discussion on the economy