THE EFFECTS OF ETHICAL MISCONDUCT Service organizations should stress the importance of ethical conduct by employees for several reasons. Personal Effects 1. In terms of social responsibility, service organizations should be required to act in a manner that is in the best interest of society. 2. Employees forced to deal with ethical issues on a continuing basis frequently suffer from job related tension, frustration, anxiety, ineffective performance, turnover intentions, and lower job satisfaction. Organizational Effects 1. Customer dissatisfaction (loss of sales) 2. Unfavorable word-of-mouth publicity for the organization 3. A negative public image for the entire industry

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