Ethics in important domain of organisational practices. Companies that engage in unethical conducts have a high likelihood of losing customers. Studies have linked unethical practices with reduced reputation. A positive reputation is essential for enhanced organisational performance and damaged reputation can have negative impacts on various aspects of a firm. The present study intended to assess the possible impacts of unethical conducts on a company’s reputation and sales with specific reference to Apple. The objectives were to: (i) critically evaluate Apple’ ethical conduct, (ii) establish whether Apple’s alleged unethical behaviour has affected the customer’s opinions about the brand, and (iii) critically analyse the extent to which the changes in opinions have affected consumer purchasing patterns.
The investigation used both primary and secondary data. Primary data was collected through interviews of 5 marketing and human resource management experts as well as questionnaires administered to 30 Apple’s loyal customers. Despite the alleged malpractices, Apple’s sales have been increasing consistently except in 2015, which was a bad year for most companies. Even though there have been some declines in Apple’s reputation, their impacts on the company’s overall image and sales are not obvious.
The report has six sections organised as follows:
§ An introduction of the research background as well as the definition and significance of the problem.
§ A review of the relevant literature including a summary of ethical principles and approaches.
§ A description of the research design, methods, limitations, and ethical implications.
§ A summary of the main findings.
§ A discussion of the findings.
§ Conclusion and recommendations for future research.
Table of Contents
Executive Summary. 2
List of Tables. 5
Index of Figures. 5
1. Introduction. 6
1.1 Background to the Research Problem.. 6
1.1.1 The case of Apple. 7
1.2 Statement of the Problem.. 8
1.3 Significance of the Problem.. 8
1.4 Research Aims. 8
1.5 Research Questions and Objectives. 8
1.6 Report Overview.. 9
2. Literature Review.. 10
2.1 Relationships between Organisational Ethics, Reputation, and Sales. 10
Ethical Principles. 11
2.1 Two approaches to ethics. 13
Research Methodology. 15
2.1 Research Design and Strategy. 15
2.2 Data Collection. 15
Data collection tools. 16
Data Analysis and Presentation. 17
2.4 Limitations of the Research Methodology. 17
2.4 Ethical Considerations. 17
4. Major Findings. 18
4.1 Comparing Apple against Its Competitors. 18
4.1.1 Changes in apple’s sales. 18
4.1.2 Consumer approval rates. 19
4.2 Views on Apple’s Alleged Unethical Practices. 20
5. Discussion. 22
6. Conclusions and Recommendations for Further Works. 23
6.1 Conclusions. 23
6.2 Recommendations for Further Research. 23
Reference List 24
List of Appendices. 27
Appendix I: Questions for Interviews. 27
Appendix II: Sample Questionnaire. 28
List of Tables
Table 1. Annual changes in company revenues. 19
Index of Figures
Figure 1. Components of brand image. 11
Figure 2. A comparison of Apple’s sales against competitors, 2010-2017. 18
Figure 3. Consumer ratings of the analysed companies. 19
Figure 4. ACSI scores for Apple and Samsung. 20
Figure 5. Key driving factors of consumer preferences. 20
Figure 6. Respondents' views on the importance of ethical practices. 21
Figure 7. Respondents' views on various alleged malpractices. 21
1. Introduction
1.1 Background to the Research Problem
Evaluating the performance of an organisation is one of the most critical aspects of management. Performance appraisal entails measuring the various indicators against a firm’s intended goals (Tapamoy, 2008). Measuring performance provides managers with the ability to have an insight into the health status of their organisation. The outcome of such assessments also provides a basis for developing strategies for improvement. Several indicators can be used to measure performance depending on the intended goals. A commonly used metric is a firm’s sales, that is, the total revenues generated from a company’s business transactions (Tapamoy, 2008). An organisation’s revenues are a direct reflection of its profitability, which is also an important performance metric. The volume of sales that a company can make, is in turn, is dependent on various dynamics including the industry of operation, economic, political, and social environments.
A positive image is one of the most crucial requirements for differentiating a brand from its competitors and increasing its popularity, and therefore, is an important determinant of a company’s sales. Consumers usually develop different relationships with a company and its products and create a perception of the firm based on the associations (Berk & Burç, 2003). A reputable brand is useful in building the buyer’s confidence on a firm and its products (Dumičić, Klopotan, & Vig, 2017). Therefore, organisations usually invest much resources in developing a reputation that resonates with the expectations of their buyers. Factors that contribute to a positive reputation include product performance, appeal to users, ease of use, popularity, and the associated value addition (Berk & Burç, 2003).
Even though creating an excellent reputation is not always easy, it can easily be ruined by many factors most of which are associated with either the nature of its products and its treatment of the key stakeholders such as employees, customers, and the environment. A destroyed image can have drastic effects on sales and other aspects of performance (Adil, 2012). Accordingly, firms must strive, not only to build a strong image, but also to maintain their good reputation.
1.1.1 The case of Apple
Apple Inc. is a California-based mega technology firm that specialises in consumer electronics. Founded in the late 1900s, Apple has grown to achieve a global reputation for excellent product performance and consumer pride. In 2018, it was ranked by Forbes as the world number one brand, beating other top performers such Google, Microsoft, and Facebook (Forbes, 2018). Despite the prevailing economic uncertainties and intense competition, Apple has managed to record notable growths in its revenues and market share in recent years (U.S. Security Exchange Commission [SEC], 2018). Apple’s strength relies on the quality of its products, which are usually designed to meet high quality and performance standards.
Despite its strong brand, Apple’s reputation risks being damaged by a stream of allegations of unethical commercial practices that have emerged in the recent years. For example, in 2016, Amnesty International sued Apple along with two other companies for failing to perform important checks for restricting child labour in Democratic Republic of Congo. In October 2018, the Italian Competition Authority fined the firm for deliberately slowing down phones using software updates. Currently, Apple is facing several lawsuits of dishonest practices in the Northern District of California (Gibbs, 2018; Wakefield, 2016).
Perhaps the most serious allegations against the company involves Chinese workers. The poor conditions in which Apple’s employees in China work was first highlighted in 2010 following a series of 18 suicides and suicide attempts at Foxconn, Apple’s contract manufacturer. In the same year, 137 of the firm’s employees in eastern China suffered severe injuries when cleaning iPhone screens using a poisonous chemical. Two explosions in two separate iPhone factories in 2011 caused four deaths and 11 injuries. Apple has also been accused of extremely low pays, extended working hours, and employee exposure to hazardous chemicals (Wakefield, 2016; Weir 2012). Whether these allegations have resulted in reduced reputation and revenues was the subject of this study.
1.2 Statement of the Problem
Apple has come under intense criticism for its alleged unethical business practices. In specific, the technology giant has been accused of exploiting its Chinese employees. Even though workplace conditions have improved after the 2010 incidences, employee complaints have persisted. The poor working conditions and worker mistreatment have been cited for increased incidences of suicide and suicidal attempts (Wakefield, 2016; Weir 2012).
1.3 Significance of the Problem
In addition to endangering the lives of its employees, Apple’s alleged unethical practices could have some serious implications on its reputation, which, in turn may result into reduced sales. If unmanaged, the accusations can serious implications on other aspects of Apple’s performance. The company needs to implement strategies aimed ensuring increased ethical compliance.
1.4 Research Aims
The study intends to establish the possible impacts that unethical behaviour can have on an organisation’s reputation. It also seeks to assess whether such conducts can give significant impacts on a firm’s sales.
1.5 Research Questions and Objectives
The following research questions guided the study:
(i) Does unethical behaviour damage the reputation of a business?
(ii) Does unethical behaviour have an impact on a company’s sales?
Based on the research questions, the following objectives were developed:
(i) To critically evaluate Apple’ ethical conduct.
(ii) To establish whether Apple’s alleged unethical behaviour has affected the customer’s opinions about the brand.
(iii) To critically analyse the extent to which the changes in opinions have affected consumer purchasing patterns.
1.6 Report Overview
The report has six sections. Following this introduction is a discussion of the research methodology including the design and methods used. The chapter is followed by a review of the literature that supports the study objectives including the relevant frameworks. In the fourth section, the main findings based on primary data is summarized followed by an analysis and discussion of the results. A summary of the report and recommendations for future investigations are presented the final chapter.
2. Literature Review
2.1 Relationships between Organisational Ethics, Reputation, and Sales
Ethics and morals have been the centre of many discussions and debates in nearly all domains of professional practice. As a branch of philosophy, ethics attempts to address issues related to morality (Jennings, 2011). Currently, there are varied definitions of ethics in the literature (Plaisance, 2009; Johnstone, 2009). Despite the variations in the definitions, the basic idea behind ethics is to provide guidelines that can be used as a basis for judging actions as either morally right or wrong (Jennings, 2011). Actions are judged as ethical based on a set of principles that provide guidelines on the activities in which moral agents should or should not engage.
Ethics remains a central issue in organisational management since it affects nearly all corporate domains including its interactions with employees, customers, shareholders, and the community. Therefore, a firm’s ethical policies have significant effects on various aspects of performance such as employee retention (Roman, 2003). Researchers concur that unethical behaviour by an organisation its representatives have drastic impacts on sales through the loss of trust and customer loyalty (Berk, A & Burç, 2003; Chen & Mau, 2009; Roman, 2003). Such conducts may also lead to declined revenues by damaging a company’s reputation.
It is important at this point to make a distinction between a company’s reputation and its brand image. A brand image refers to the current impression or a set of beliefs that consumers hold regarding a particular brand (Adil, M. 2012). A brand image covey an emotional value attached to an organisation and its products. A brand image is usually formed from the combination of many factors among them, reputation. Reputation denotes the feelings and opinions that consumers have regarding the behaviour and performance of an organisation (Dumičić, Klopotan, & Vig, 2017). According to Ike and Zhenzhen (2009), a brand image is the product of four elements: perceived product quality, customer loyalty, satisfaction, and commitment (see Figure 1). Besides, each of the four elements can be affected by a firm’s ethical practices.
Figure 1. Components of brand image
Source: Ike & Zhenzhen, 2009
Ethical Principles
Ethical principles provide moral agents with valuable guidelines for establishing the rightness or wrongness of their actions. An ethical principle is a fundamental proposition that forms the foundation of beliefs and behaviours that are related to ethics and morals (Jennings, 2011). The number and definitions of ethical principles are subject to various factors most of which are related to the approach used and field of application. For example, Avasthi et al. (2013) identify about fourteen principles including, informed consent, privacy, voluntariness, non-exploitation, community agreement, confidentiality, and risk minimization. Baines, Taylor, and Vanclay (2013)’s analysis of different ethical guidelines in research isolated over 20 principles. Generally, the various guidelines can be grouped into four main principles: respect for autonomy, beneficence, non-maleficence, and justice.
Autonomy.
Autonomy implies the right of a moral agent to make personal decisions free of undue influences. Basically, autonomy dictates that all individuals have the right to decide whether or not they can engage in particular actions (Beauchamp & Childress, 2009). Respect of autonomy requires employers to recognise and promoted the right of every employee to make personal choices, hold their views, and act based on their beliefs. In the organisational context, autonomy can be assessed from the perspective of either an individual, department, or organisation. The focus for this discussion is on individual (employee) autonomy.
An essential requirement for employee autonomy is informed consent. The concept of informed concept implies that a worker should engage in a particular activity knowingly, intelligently, and voluntarily (Beauchamp & Childress, 2009). They should be informed of all the aspects of a job including both foreseen and unforeseen risks. A person should perform a job only after knowing all the requirements, making reasoned judgments on the possible consequences, manifesting their consent in clear manner. The extent to which employees should exercise their autonomy has been subject to much debates in management literature (Amy, Sara, & Tian, 2018). A worker’s independence is limited by the obligations they have toward their organisation and the fact that they are answerable to their seniors. Still, it is possible for employees to fulfil their duties while maintaining a measure of autonomy.
Beneficence and non-maleficence. Beneficence and non-maleficence are among the core principles of ethics and the foundations of morality. Non-maleficence provides organisation with guidelines regarding the risks that may be associated the workplace environment. The principle requires companies to refrain from engaging in any practices that causes any harm (physical, economic, or emotional) to their employees (Beauchamp & Childress, 2009). An organisation needs to be highly cognisant of any situation that may jeopardise the wellbeing of its staff. Non-maleficence, therefore, forms the foundation for organisational safety practices.
In the context of organisational management, beneficence stresses the obligation that firms toward the maximisation of the benefits entitled to their employees (Johnson, 2016). The principle requires organisations to not only avoid harmful activities, but also engage in those that promote the welfare of their workers. Some practices that may be considered as acts of beneficence include counselling programs, scholarships for further studies, and other different forms of support programs.
Justice.
Justice in ethics conveys different meanings that are associated with equitable and fair practices. Justice requires organisations to engage in activities that promote equality, fairness, and equitable treatment (Beauchamp and Childress, 2009). Corporate justice can be procedural (involving organisational processes), interactional (treatment of humans), or distributive (associated with decisions and distribution of a firm’s resources) (Johnson, 2016).
2.1 Two approaches to ethics
Discussions of ethics in the modern context is usually based on three approaches: consequentialism, deontology, and virtue ethics. Most ethical theories can be classified across the three broad categories. Deontology and consequentialism representing contrasting school of thoughts. The basic component of consequentialism is the idea that actions should be judged as ethical or unethical based on its outcomes rather than the action itself. The primary justification of this view is that a rational being should always acts in such a manner that they produce the greatest good (Peterson, 2013). One of the dominant consequentialist theories is utilitarianism. Utilitarianism is a utility-based philosophy that actions should be judged based on the extent to which they produce the greatest good or utility (Peterson, 2013). Proponents of utilitarianism contend that morally permissible actions are those that have good ends irrespective of the means for realising the outcomes.
In contrast to consequentialism, deontological ethics focus on the nature of an action instead of the end results. Deontology is a duty-oriented school of thought and maintains that consequences are less important than the actions in themselves and that actions are either intrinsically right or wrong (Timmerman, 2015). Therefore, the morality of an action should be judged based on the nature and intention of the action and not the outcomes.
Both utilitarianism and consequentialism are highly influential ethical theories that can be applied to a broad range of instances. For example, in the case of Apple and Chinese workers, the company has been accused of indecent pays, extended working hours, and hazardous work environments. From the perspective of utilitarianism, a morally right action maximises the benefits out of a situation. Indecent wages and long working hours have the potential of reducing the firm’s operation costs and, thus, increasing its margins. However, they have negative impacts on the health of employees (Dessler, 2017). Whether, they should be deemed as morally right or wrong from the consequentialist standpoint depends on which the two outcomes, profitability and negative health impacts, is viewed as more advantageous. Of course, the assigned advantage is contingent on whether the results are viewed from the perspective of the company or the workers.
From the worker’s viewpoint, low pays and extended hours violate the principle of beneficence, which is considered by proponents of utilitarianism as the ultimate standard for all moral practices, and, therefore, are considered unethical (Mill, 2006). Additionally, the two practices have been associated with reduced staff motivation. Low motivation levels may attract negative consequences including reduced productivity, high turnover rates, and high costs of human resource management. Therefore, if viewed from the long-term’s lens, even though the two actions may result high profits, they may be disastrous. Deontology evaluates actions based on their adherence to particular obligations. For example, companies have the obligation to respect the lives of their employees. They have the duty of not doing harm to their workers. Reduced pays, extended work hours, and hazardous work environments violate the two obligations and, therefore, are unethical. Based on the above analysis, it can be concluded that even though deontology and utilitarianism have view actions from contrasting perspectives, they both consider Apple’s alleged malpractices as unethical.
Research Methodology
2.1 Research Design and Strategy
The study followed a mixed descriptive-explanatory design. Descriptive techniques were used to provide a summary of the major trends in the findings. Even though they provide good summaries of notable patterns, they often fail to provide the reasons for the observed trends (Creswell 2014). The current study intended to assess whether or not Apple’s alleged malpractices have had impacts on its sales and the possible explanations for the outcomes. Therefore, the descriptive approach was supplemented by explanatory techniques. The study followed a survey-based strategy due to its usefulness in identifying important trends. Surveys also tend to be authoritative, easily understandable, and cost-effective (Creswell 2014).
2.2 Data Collection
The study used both primary and secondary data. The latter was obtained from authoritative internet sites and was used to assess the trends in Apple’s sales and its performance against top competitors since 2010 (2010 was used as a baseline since the first notable revelation of the company’s possible malpractices occurred in that year (Weir 2012). Secondary data was also used to evaluate changes in customer satisfaction levels over the same period. Owler’s website was searched for Apple’s top competitors. Three firms were selected for comparison: Samsung, Microsoft, and Dell (Owler, 2018). Sales data was obtained from the U.S. Security Exchange (SEC) as well as the individual companies’ websites. Data on consumer satisfaction was based on the American Customer Satisfaction Index [ACSI], 2018), an economic metric that measures the U.S. consumer’s level of approval of various organisations.
Primary data was collected using interviews and hand-delivered questionnaires. A description of each of the tools in the next sub-section. The target population for the surveys comprised Apple’s customers and experts in the relevant subjects. For questionnaires, a non-probabilistic sample based on the snowballing technique was used. Since it was not possible to isolate Apple’s customers, the questionnaire was designed for the general consumer. However, some questions prompted the respondents to identify their company preferences and were used to isolate the target respondents. One hundred questionnaires were deployed across (indicate a location) out of which 30 individuals were selected and included for the final analysis. For inclusion in the final sample, the respondent must have been an Apple loyalist as of 2010.
Data collection tools
Questionnaire design. The effectiveness of questionnaires used for surveys depend on the choice and structure of the questions (Creswell 2014). A sample of the questionnaire used for the study is in Appendix II. The questionnaire had 20 questions that were formulated based on the research objectives and grouped into three sections. For maximum participation, the study endeavoured to minimise the use of open-ended questions as has been suggested in the literature (Creswell 2014). The first part had five questions designed to assess the respondent’s views on organisational ethical practices. The second section evaluated Apple’s performance against its competitors while the final part was meant to examine the changes in the attitudes of Apple’s consumers following the allegations.
Interviews. Face-to-face interviews were conducted with five respondents: three marketing consultants, a marketing manager, and a human resource manager. The choice of the respondents was justified by the measure of authority that they command over the issues in question. The questions for the interviews were designed to help obtain expert views on organisation ethics, Apple’s alleged practices, and their possible impacts on the firm’s sales (see Appendix I for the questions).
Data Analysis and Presentation
The collected data was analysed using standard procedures for evaluating qualitative and quantitative data as presented in the literature. Descriptive statistics including frequencies, means, percentages, and percentages were used for analysing quantitate data. Qualitative analysis was based on grounded theory, which endeavours to assign meanings to research phenomena (Creswell 2014). Ms Excel was used as the primary software for analysis and presentation.
2.4 Limitations of the Research Methodology
The study used snowballing technique to recruit the participants. Snowball samples are often subject to biases that may limit the quality of the findings. Additionally, the sample used was relatively small and could limit the generalisability of the findings.
2.4 Ethical Considerations
The study endeavored to adhere to ethical guidelines as outlined in the literature (Creswell, 2014). It avoided practices that could cause intentional or unintentional harm to the participants. Participation was voluntary, and none of the respondents was unduly coerced into participating. The identities of the respondents were concealed from either the researcher or other individuals who had access to the information. Authorisation was obtained from the university’s (name university) approval board.
4. Major Findings
The study aimed at evaluating the impact of unethical practices on a company’s reputation and sales, with specific reference to Apple Inc. Both secondary data from different websites and primary data collected through interviews of 5 experts and questionnaires administered to the company’s consumers. The main findings are presented in this section.
4.1 Comparing Apple against Its Competitors
4.1.1 Changes in apple’s sales
Data on Apple’s sales 2010 to 2017 was compared against and those of its competitors. The results are summarised in Figure 2. All the firms registered increases in revenues between 2010 and 2017. However, Apple recorded the highest rise of 307 percent representing an annual average growth of 44 percent, which was more than five times that of its closest competitor, Samsung. Apple’s revenues have been growing consistently since 2010, except in 2015 when the firm experienced a 7 percent decline.
Figure 2. A comparison of Apple’s sales against competitors, 2010-2017
Sources: The U.S. Security Exchange Commission; Samsung Electronics, 2011, 2014, 2018
The analysis proceeded to establish the annual yearly growths in revenues for each of the companies. The results are in Table 1. According to the findings, the four companies have recorded nearly similar trends in their sales. However, Apple seems to have enjoyed better annual revenue growths than its competitors. Even the firm’s sales slumped in 2015, a similar pattern was observed among all the competitors except Microsoft. Therefore, it is appearing that the recent claims of unethical practices have had little or no impact on Apple’s sales.
Table 1. Annual changes in company revenues
2011
2012
2013
2014
2015
2016
2017
Apple
65.96
44.58
9.20
36.75
-7.73
6.30
15.86
Samsung
6.71
21.93
13.72
-9.84
-2.69
0.60
18.68
Microsoft
11.94
5.40
5.60
11.54
7.77
-8.83
5.43
Dell
16.24
0.94
-8.27
3.42
-8.06
-5.97
21.08
Source: Author Compilation
4.1.2 Consumer approval rates
As noted above, 100 questioners were questionnaires were administered across (indicate location). The response rate was 100 percent. The 100 respondents were asked to rate their liking for Apple and its main competitors on a scale of 1 to 5 with 5 being the highest rating. The results are summarised in Figure 3. According to the figure, Apple still enjoys a higher liking among consumers than do its competitors.
Figure 3. Consumer ratings of the analysed companies
Source: Author, 2019
Apple’s ACSI indices were analysed to establish whether there were notable changes especially after 2010. The values were compared against those of the firm’s closest rival, Samsung, to determine if there have been exceptional trends. As shown in Figure 4, Apple’s ACSI scores have been declining since 2013. However, the falls are not highly pronounced. Samsung recorded some improvements between 2011 and 2016. However, as in the case of Apple, Samsung has experienced slight drops in its ACSI scores. The investigation sought to establish the key driving factor for consumer preference. For all the four companies, product quality and performance are the factor that consumers consider the most (see Figure 5). The outcomes are in agreement with those of the interviews that identified Apple’s focus on quality as primary driver.
Figure 4. ACSI scores for Apple and Samsung
Source: ACSI, 2018
Figure 5. Key driving factors of consumer preferences
Source: Author, 2019
4.2 Views on Apple’s Alleged Unethical Practices
The findings presented in this section are based on the responses of the interviews and the thirty Apple loyalists who were selected from the 100 participants. The respondents were asked their views on the need for companies to engage in ethical practices. The majority of them felt the ethical practices were either important or very important (see Figure 6). Still, it was evident that firms have many motivations to involve themselves in dubious behaviours. According to the findings of the interviews, the main reason why companies engage in unethical practices is to maximise their profitability. Forty three percent of the respondents were aware of Apple’s alleged unethical conducts. The most mentioned allegation was that involving the Chinese workers. Exposing workers to hazardous conditions and child labour were considered the most immoral organisational practice (see Figure 7). All the respondents considered the allegations against Apple as wrong and could have some negative impacts on Apple’s reputations, while 70 percent felt some sense of betrayal. The accusation that was considered by the majority to have the greatest impact on its reputation was the introduction of applications that slowed down product performance.
Figure 6. Respondents' views on the importance of ethical practices
Source: Author, 2018
Figure 7. Respondents' views on various alleged malpractices
Source: Author, 2019
Despite the effects on the attitudes toward the company, only 8% stated that they would switch their preference if they realised that it engaged in unethical conducts. The main reasons cited for the failure to migrate were product quality and Apple’s reputable brand (see Figure 8). The findings were confirmed by those from the interviews. All but one of the interviewees felt that even though the emerging accusations could have some impacts on Apple’s reputation, they would have little or no consequences on the company’s sales.
5. Discussion
Ethics and ethical conducts are important domains of organisational practice. A firm’s ethical behaviour can have significant impacts on various aspects of its performance, specifically reputation and sales. The relationships between unethical practices, reputation, and sales is well established in the literature. Unethical conducts often damage the reputation of a firm and, in turn, affects its revenues (Dumičić, Klopotan, & Vig, 2017). The previous section has presented some of the main findings on the possible effects of Apple’s alleged malpractices on its reputation and sales. The company seems to manifest some exceptions regarding its image and sales. Based on the results, it is apparent that the allegations against Apple have had some damaging effects on its reputation as is evident by the feelings of betrayals among some of its loyal clients. Still, whether the damaged reputation has had negative impacts on the overall image of the company is not obvious. Even though Apple’s customer satisfaction index has been decreasing since 2013 (see Figure 2), the declines are marginal and it is not apparent whether they have been caused by the allegations.
Despite the mounting accusations, the company continues to enjoy strong sales and high levels of customer loyalty. Apple’s ACSI remains the highest among its competitors (see Figure 2). Several factors can explain this exception. A possible explanation is the fact that Apple’s key rival, Samsung, has also been accused of several malpractices, and therefore, customers finds no basis for quitting (Wakefield, 2016). Another reason is highlighted by one of the ex
