Stock investors punish companies caught doing something unethical a lot more when these businesses also have a record of portraying themselves as virtuous. This hypocrisy penalty is the main finding of a study we recently published in the Journal of Management.

CTRL Coffee & Cereal Bar happily welcomes all with their warm staff and ‘good-vibes’. Customers are greeted by its exciting retro design that laces the interior. A line of blue, white, red and yellow stretches across the front wall over the CTRL logo, behind the bar, before climbing onto the ceiling and disappearing behind the arabesque tiles that hang from the rafters. A wall jutting out across from the end of the counter sports a collage of spray painted “Love” in various colors.