People's acceptance of inequality affects response to compan

People's acceptance of inequality affects response to company wrongdoings


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UNIVERSITY PARK, Pa. -- People who do not accept inequality are more likely to negatively evaluate companies that have committed wrongdoings than people who do accept inequality, and this response varies by culture, according to researchers at Penn State. The team also found that companies can improve their standing with consumers when they offer sincere apologies and remedies for the harm they caused to victims.
"Some prominent examples of company moral transgressions include Nike's and Apple's questionable labor practices in developing countries, BP's oil spill in the Gulf of Mexico and Volkswagen's emissions scandal," said Felix Xu, graduate student in marketing at Penn State.

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