Corporate misconduct refers to unethical or illegal actions taken by a company or its employees. This can include activities such as fraud, insider trading, or violating environmental regulations. Such behavior can harm stakeholders, including employees, customers, and investors, and can lead to legal consequences for the company. Common examples of corporate misconduct involve misleading financial statements or deceptive marketing practices. When companies prioritize profit over ethical standards, they risk damaging their reputation and losing public trust. Regulatory bodies, like the Securities and Exchange Commission (SEC), often investigate and penalize companies involved in such misconduct to promote accountability and transparency.