Of course, this free distribution of music couldn’t last long before it was attacked by the music industry. The first big attack on Napster came from thrash gods Metallica in 2000: after they discovered that their single “I Disappear” had been leaked to Napster before it was released, and had even made it to radio, they filed a lawsuit against the service under the Digital Media Copyright Act What Is the Digital Media Copyright Act? What Is the Digital Media Copyright Act? Read More . Dr. Dre quickly followed suit (no pun intended). The Recording Industry Association of America also filed a suit. As a result of these lawsuits, Napster shut down in 2001 and declared bankruptcy the following year.
Sustainability . Sustainability is a notion that proposes that socially responsible firms will somehow financially outperform other less responsible firms in the long run. This might result from customer loyalty, better employee morale, or public policy favoring ethical conduct. Empirical results testing this hypothesis are mixed, neither suggesting that more responsible firms, on the average, have a clear financial advantage nor a large burden. Thus, a useful approach may be to determine (1) specific circumstances under which a firm may actually find the more responsible approach to be more profitable, (2) under which circumstances responsible behavior can be pursued without an overall significant downside, and (3) the ethical responsibilities that a firm faces when a more responsible approach may be more costly.