Why do firms behave illegally?

Firms may behave illegally to gain competitive advantages, such as increasing profits or market share, often believing the potential rewards outweigh the risks of getting caught. Pressure to meet financial targets, a culture that prioritizes results over ethics, or a lack of effective oversight can also drive unethical behavior. Additionally, some firms may exploit regulatory gaps or ambiguity, assuming they can navigate the legal system without consequence. Ultimately, a combination of greed, opportunity, and inadequate accountability can lead to illegal actions.