Refuge Nursing Homes, Inc., (RNH) has been highly profitable in the past 10 years, providing its investors with large financial returns. RNH has a reputation for providing high-paying managerial and hourly-employee jobs. However, recent investigations have revealed that the nursing home residents have been provided substandard care, including non-nutritious and unappetizing meals, non-functional medical equipment, and inadequate patient-care staffing. Which statement best describes the situation?