Will Your Ethics Hold Up Under Pressure By Ron Carucci

Since the dawn of time, ethical behavior has been a recurring thought that is a constant throughout the decision making process by many businesses. However, ignored more times than one care to admit. In addition, in recent years the ethical dilemmas continue to plague organizations and their leadership. Organizations and their leaders make decisions daily that can ultimately lead to embarrassing outcome. The subject of ethics is never meet easy, nor is it straightforward in any context. Ethics is a forever-evolving phenomenon that expands throughout organizations as well as your personal lives (Cheney & Frenette, 1993; Fielder, 1964; Jennings, 2012).

Ethical issues are a significant area for companies doing business deals on a daily basis. In today’s high tech and the ultra-competitive business world, unfortunately, ethical conduct is often ignored. Many huge companies like Enron, Arthur Anderson, AIG, Fannie Mae and Freddie Mac, as well as Bank of America, are crushed, or seriously damaged with the lack of ethics compass in place. Organization ethics is the guidelines and principles by which businesses operate; “the principles and values of each person in a business” will have “a direct influence on the company’s success” (Renshaw, Kubat & Angellotto, 2013, p. 11).

In light of the recent financial catastrophes, there appears to be an increasing desire for ethical dealings in business. Maxwell suggests that there is currently a trend in the marketplace that seems to be placing more value on integrity, taking a longer view of strategies, and setting more realistic or conservative goals, though the jury is still out regarding the effectiveness of implementation and execution in changing the corporate money-making climate. Despite the Sarbanes-Oxley Act of 2002, which sets the standard for corporate accountability and penalties for wrongdoing, some experts believe the responsibility for maintaining an ethical environment is up to management (Jackson, 2005).

In recent times there has been an emphasis on following business ethics, as it is believed to have an impact on the way business is run and how its prospects turn out. In the past, business ethics were often ignored, as entrepreneurs had other priorities that took the front seat to ethics, such as, profit-making and stakeholder interests. However, business ethics are a tool to improve the business image in the future if followed in the present. An adherence to business ethics can lead to returns in non-monetary terms such as increased customer loyalty, improved public relations and brand image, as well as high employee morale. The improved brand/business image can lead to a boost in the sales growth and can foster good public relations.

Discussion on ethics in business is necessary because business can become unethical, and there are plenty of evidences as in today on unethical corporate practices. Even Adam Smith opined that ‘People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices’[1]. Firms and corporations operate in the social and natural environment. By virtue of existing in the social and natural environment, business is duty bound to be accountable to the

Most people usually think business and ethics are two different concepts that are very hardly inter-related (Gavai, 2010). It may be explained by the fact that business is an activity which is governed, basically, by the principle of incomes and outcomes, while ethics, on the other hand, promotes good moral behaviours. That usually suggests you what one ought to do and what is “right” or “wrong”. This impression is not, however, what we can see in reality. Business activities integrate society and, as part of it, simple rules of human society, such as ethics and responsibilities are involved. Getting deeper on the concept, ethics can be seen as a manner to control people’s actions, to

Business ethics and corporate social responsibility are at the maximum ranks for companies and consumers. Big businesses are faced day-to-day with different questions from customers and shareholders concerning a company’s ethical and social responsibility. Business ethics can consist of everything from the way the company employs or how a company can make their assertions in public relations. Businesses rest on on their employees who exemplify the business in public and on their consumers to epitomize an honorable appearance that is linked together with the objectives and purposes within the company.

There is an ongoing debate over how important and necessary ethical behavior is in the business domain. It is arguable due to the advantages and disadvantages that come into to play with every decision. Some stand on the side of the dispute that ethical behavior may slow down one’s rate of success, but it ensures that success is accomplished morally and justly. On the other hand, some blatantly argue that ethical behavior is not necessary when one is on the thin line between success and failure. In other words, this side believes unethical behavior is not a problem when one is in desperate need of higher achievement. Businesses often display unethical behavior towards their customers through their advertising in the media, towards their employees through mistreatment, and towards their investors through bribery. In each topic, the importance of ethical behavior is evident.

Good business ethics is just one of many ingredients necessary for a successful business. You cannot have a successful business if you take advantage of stakeholders that support and have a vested interest in your business. History has shown time and again that, when the opportunity to grab quick profits presents itself, ethics can all too readily take a back seat to the entrepreneurial spirit. Incidents or abusive behavior, harassment, accounting fraud, conflicts of interest, defective products, and bribery and employee theft can happen at any business. Corporations have a social responsibility, an

Business ethics is a diverse field that cannot be defined with a single definition. This area addresses numerous issues, problems, and dilemmas within the management of businesses. Does this through numerous perspectives and methods. Of course, in order to present the complexities of business ethics, we must explore the types of issues that business professionals are continuously confronted with. To understand one must

Business ethics has developed since the 1960s in the United States. Ethical dilemmas have changed according to the economic environment. During the 2000s, financial failures happened more frequently because of unprecedented economic growth. Nowadays, ethical dilemmas such as financial mismanagement, international corruption, and companies’ promotional purpose are the main reasons that some high profile companies such as Enron and Lehman Brothers collapsed. Due to the allure of huge benefits, management is facing bigger ethical challenges than ever before when making business decisions. Over the last two decades, business ethics has been troubled by a lack of direction and has become entangled in its own logic (Donaldson, Dunfee, 1994, p.1). Business ethics as self-regulation helps us to distinguish between two things. What exactly we think firms’ ethical obligations are, above and beyond complying with laws, and what it would be favorable for them to choose to do when they are not obliged to do so (Norman, 2011, p.1). When fraud happens, companies collapse more rapidly than its growth. Collapse resulting from the fraud not only destroys the companies, but also may results the shareholders investments impossible to recover. Many stakeholders will also suffer from the loss due to the fraudulent

Ethics is an incredibly important aspect of domestic business. Companies and their employees need to be mindful of their decisions and actions, and how they affect others. But when business is taken to the international and global level, being conscious of ethics becomes absolutely vital. In order to be successful long-term, ethical practices must be followed, as well as having a level of social responsibility.

In the business world, ethics is a highly debatable and controversial topic. There is no standard measure to state if a particular perceived ethic is good or bad. This decision is highly subjective and each viewer has

The lost of confidence by investors have caused the regulatory repercussion in the global markets. The best way to evade future crises and build business is not about implementing regulation to avoid fraud, but to use smarter ethics as well in order to maximize the company’s integrity. However, ethical behavior must not be confused with following the law or achieve what communities suppose is acceptable or satisfactory.

In the modern world, two things are most sought after: goodness and prosperity. However, given the innate nature of mankind, and his compulsions towards greed and selfishness, complete morality is impossible. This idea has roots in the definitions and ideals found in utilitarianism, a term that will be defined later, and has led many to call business ethics an oxymoron. “In the US generally, the ethical road that is paved with good corporate intentions and constructive programs includes some bumps,” (McClenahen 60). Although bumps may exist, many companies are striving for excellence in this area as statistics show ethics are related to customer loyalty 's. These businesses have found that improvements can be found through understanding and action. Business leaders can increase morals by understand utilitarianism, leadership, correct forms of communication, and how these affect customers.