Modern Businesses are becoming increasingly powerful. In fact, some businesses have so much influence, that they believe they can act above the law and become over-controlling of certain aspects of people’s lives, such as healthcare (Boylan 289), and computer and military technology, with influences even extending into politics (Brenkert 1). Many Businesses boast to be run by the best moral and ethical standards, yet these businesses are still being faced with legal suits against them. The argument that is made by these companies is that they did whatever it was that they did, in order to bring about some other ‘good’. I believe that these types of businesses should be better policed on upholding their own ethical policies that …show more content…
How does this affect the consumer? Poor working conditions could be the cause of a poorly crafted product or a defective product. If these products are sold in the market, the consumer may be at risk, health or otherwise. This is also intolerable conduct. When consumers buy a product, they trust that the company’s product was created or manufactured in a safe and fair manner. In modern society, there are more and more calls for corporate responsibility; “… [Companies] are being exhorted to provide their employees with safe working conditions, to produce safe products, and to market their goods in a responsible manner” (Brenkert 2). Business organizations and other associations are trying to develop some universal standards for a code of business ethics.
There are also instances of internal illegal and unethical activity within corporations. These types of activities might include executives squandering corporate assets for personal use, failure to report significant factors to shareholders, or ‘beefing-up’ reports to the public so the company doesn’t look quite as bad as it is. This does not affect consumers in the same direct way as stated before. When numbers are being tampered with and insider trading occurs, these executives are gaining unfair knowledge of the marketplace, and have an unfair advantage to make profit. This leaves all the shareholders, employees and consumers with stock ‘high and dry’. For example, say ‘Company A’ is on the
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the
Freeman believes that business decisions cannot be fundamentally separated from ethical decisions. His argument is compelling; in his “Open Question Argument” he identifies several ways in which business decisions inherently have an ethical dimension, including “Who is harmed and/or benefitted by this decision?” (Freeman, 59). If business is only concerned with profits, they will undoubtedly harm other stakeholders along the way- most directly other businesspeople who are outcompeted! Freeman also contends that businesspeople will in fact accept responsibility for their actions outcomes. A directive from bosses to solely pursue profits regardless of outcomes will not be tolerated by employees or executives, thus in practice profit focused business cannot work if employees see the ethical implications of their actions as wrong (Freeman,
The author Robert Solomon argues that ethics has to an integral part with regard to business management. He does not believe that business management must include unethical or illegal methods to be able to succeed. Solomon preaches that business management is not as simple as obtaining revenue. “Businesses need to abide by fair policies and their owners have to be ethical in dealing with their customers” (Shaw p. 37). The author acknowledges that while illegal practices in business management could bring positive results at first, eventually the business is bound to fail. This is why Solomon recommended eight important policies that can help businesses in integrating ethics into their operations.
Greg Whalley, (former Enron President and Chief Operation Officer) had six to eight conversations last fall with the Treasury’s Department Peter Fisher, including one in which he asked Fisher to call Enron’s lenders as they decided whether to extend credit to the company.
Ethics in business addresses the ‘right’ and ‘wrong’ behaviours of business practises, and how these practices impact the employees, shareholders, the general public and the environment.
As said in every economics class, the reason every business goes into business is to make money. The same can be said in criminal cases involving businesses. In the majority of cases, executives and people highly ranked in the company tend to bend the numbers in the financial/accounting areas of the business or corporation. They do not do this for fun, but rather to make money. Something needs to be done before corporations really get out of hand.
Corporations can be large or small but they all have some sort of ethical impact on their employees, shareholders, customers, community, and surrounding environments. Richard DeGeorge writes, “We can speak of corporations having moral responsibilities to act in certain ways, and they are morally responsible for the consequences of their actions on people.” (p. 200). Large corporations are comprised of the board of directors, management, and their workers. They also deal with suppliers, customers, and have competitors. This essay will examine the moral responsibilities within a corporation.
Business ethics since the beginning of this decade has been slowly eroding; if we are to believe what we see and hear in the media. Several times a day, one can view some derogatory piece of information concerning a business. However, it must also be considered that these companies are contributing to that stigma. There have been a variety of companies and individuals who have figured prominently in the media concerning their unethical behavior.
Acting morally in the business field is not easy, especially today in corporation models where capitals and profits are the priorities of mostly any business.
Between April 20th 2010 and July 15th 2010, BP's drilling rig explosion in the Gulf of Mexico was the biggest oil spill in the history of the petroleum industry. Eleven people died. # of days later and $ in fines, BP stopped the spilling of oil into the ocean. According to the U.S. Fish and Wildlife Service (USFWS) reported on September 17th, “in terms of land animals, at least 3000 have died, tens of thousands of others have been affected [including] millions of sea organisms [although] there is no accurate count”. Conversely, it is unlikely that other than those that have been directly affected can recall the amphetamine weight loss drug scandals between the 1960’s to 1990. For that matter, likely few are motivated enough to look up the
In today’s society crime occurs everyday across all aspects of life. One particular crime is that of white collar and corporate level crime. It is important that we as a society study this type of crime in depth because many individuals believe that white collar and corporate level crimes are victimless crimes when in reality they have the potential to destroy major corporations and economies all with one single case. The news or media rarely talk about this type of crime because it is often difficult to understand and individuals typically lack interest in these types of cases. One particular case is that of Jordan Belfort. Dubbed the infamous “Wolf of Wall Street” Jordan Belfort is a former stockbroker who robbed investors of over $200 million dollars to create his wealth through “pump and dump” schemes, insider trading, money laundering securities fraud, and stock-market manipulation. As an attempt to further understand these complex cases I will break down Belfort’s case as far as the methods and means as to how he got started, his use of “pump and dump” schemes and other means as to how he acquired his wealth. In addition to this I will discuss the sanctions and disciplinary action that Jordan Belfort was given, how the case affected society and what new regulations were
The government has a crucial role to play in establishing the ‘rules of the game’ by which we judge business ethics.
The overwhelming facts point to a shady underworld of self-dealing and opportunistic exploitation of the poor and working class, which was until recently, well hidden from the commoner. The executives of WorldCom and Enron provide real world examples of unethical business practices, where the desire to make money for their shareholders transcended into an addiction to greed and self-dealing that were displayed by their, “excessive pay, perks, and golden parachutes”(Carson 392) at the expense of all stakeholders. All is not lost, there are corporations that pride themselves in their sound business model and commitment to ethical business practices. Such companies as Eaton Corporation, and Weyerhaeuser, who according to Ethisphere.com, a business ethics watchdog, are among the “2010 World`s most ethical companies.” (Ethisphere)
Ethical Lessons Learned from Corporate Scandals Ethics is about behavior and in the face of dilemma; it is about doing the right thing. Ideally, managerial leaders and their people will act ethically as a result of their internalized virtuous core values. The Enron scandal is the most significant corporate collapse in the United States and it demonstrates the need for significant reforms in accounting and corporate governance in the United States. It is also a call for a close look at the ethical quality of the culture of business generally and of business corporations (Lessons from the Enron Scandal).