The Five Myths Of Business Ethics

As many things in life, ethics has evolved through the history of our society. As anyone who has ever has read the news can attest, there are certain behaviors and tradition typical in societies around the world that may seem unethical and, sometimes, inhuman when seen through our ethical point of view. However, we often forget that many of those behaviors and tradition were, not only accepted, but expected in our society at one time. As our society changes over time, our moral code and compass shifts changing our outlook and tolerance for certain behaviors. And, as in other aspects of our society, the way we conduct business is no different.

There is an occurring misrecognition of their actions about the choices they are making. Ann Tenbrunsel, a researcher at Notre Dame who studies unethical behavior recognizes “that we are frequently blind to the ethics of a situation” minds do not see what is in front of us. (Joffe-Walt and Spiegel) Psychologists have been calling it “’bounded ethicality’” (Joffe-Walt and Spiegel). Tenbrunsel informed the authors about an experiment with two groups.

“the law does not prohibit all “bad” behavior. An action that is unethical may nonetheless be legal” (Bagley/Savage, 2010).

Craig and Gustafson (1998) maintain that ethics is a matter that requires significant consideration to those in leading positions. Trevino, Hartman, and Brown (2000) affirmed that individuals with power must be strong morally and prove their strength in management to be considered as ethical leaders to those in their work environment (as cited Brown & Mitchell, 2010).

Business ethics refers to the consideration of moral decisions and responsibilities in the process of operating a business. Business ethics, practiced throughout the deepest layers of a company, become the heart and soul of the company 's culture and can mean the difference between success and failure. Values drive behavior and therefore need to be consciously stated, but they also need to be affirmed by actions. Ethical business environments are created with foundations of integrity, accountability and commitment.

Engaging in ethical leadership is among the most important components of leadership. In order to earn respect of followers and increase the possibility of affecting their actions, the leader must, not only be authentic, but exhibit integrity. Leaders must also demonstrate personal values coupled with and ethical behavior. More

Ethical leadership encompasses the manner in which one leaders that respects the rights and dignity of other individuals. According to Preston (1996) “ethics is concerned about what is right, fair, just, or good; about what we ought to do, not just what is the case or what is most acceptable or expedient” (p.16). Ethical leadership calls for ethical leaders in the organization. However, although an organization’s beliefs, valves, customs and philosophies need to start from the chief executive, the managers and employees must be dedicated to the organization’s goals for a culture be shaped (Butts Ed.). In order for a strong organizational culture to be successful, components of key valves must be in place and followed. With the

1. The Sales Rep. A sales representative for a struggling computer supply firm has a chance to close a multimillion-dollar deal for an office system to be installed over a two-year period. The machines for the first delivery are in the company’s warehouse, but the remainder would have to be ordered from the manufacturer. Because the manufacturer is having difficulty meeting the heavy demand for the popular model, the sales representative is not sure that the subsequent deliveries can be made on time. Any delay in converting to the new system would be costly to the customer; however, the blame could be placed on the manufacturer. Should the sales representative close the deal without advising the customer

(Panza & Potthast, n.d.) Ethics is very important to a company’s success. Ethical behavior can bring benefits to a business. They can attract customers, which can lead to a boost in sales and profits. It can attract the right employees and increase productivity. It can also attract investors and keep the company’s share price high. Unethical behavior on the other hand can damage a company’s reputation and make it less appealing to stakeholders. It could also result in lower profits.

“America’s… moral compass seems to no longer to have a true north. The needle pins crazily, looking for a direction on which to settle, a direction that can lead a nation on a path of integrity and morality.”- Dr. David Jeremiah. We are all looking for a direction to settle but sometimes our needle can go the wrong way. There are certain times where we will need to be unethical and immoral. Therefore, since many people cannot control what situation they’re in and because no one is perfect; i think it’s okay to be unethical and/or immoral.

Ethical leadership is leadership that involves leading in a way that respects the rights and integrity of others. As stated by Johnson (2013), leaders are by nature in a position of social power and ethical leadership emphasizes on how leaders use their social power in decision-making, ways they can influence others and the actions they engage in. Ethical leaders demonstrate a strong level of integrity that is crucial to building a

I agree with the author’s argument that unethical behavior can arise unintentionally because we tend to don’t think about the side effects that may arise when we make our every decision—and that happens too often. In the article, author provides us an excellent illustration of two modes of decision making. Like author states in the article, our minds have two distinct modes of decision making, which we use each of these modes in separate occasion of decision making. When our minds are overloaded or we are in any kind of emergency, we tend to make ethically compromised decisions. This happens because of the two modes of decision making—System 1 and System 2 thinking—according to the author. If our brains need to make decision quick or experience fear or emergency, in these types of scenarios, we tend to use our System 1 thinking mode because this mode is our intuitive system of processing information because it is fast, automatic, effortless, implicit and emotional so we use System 1 thinking mode majority of the time. However, System 2 thinking is slower, conscious, effortful, explicit, more logical and we weigh the pro and con or aftermath of our decision. One recent incident that involved System 1 thinking method is I believe is Harambe, the Gorilla that was shot at the Cincinnati Zoo to save a baby. They had to make a decision in the matter of

“Ethical leadership is leadership that is directed by respect for ethical beliefs and values and for the dignity and rights of others. It is thus related to concepts such as trust, honesty, consideration, charisma and fairness.”

A leader isn’t always a manager, but can be a manager in an organization. When you combine the two into ethical leadership you have a strong dynamic. According to Yukl (2010) in cross-cultural research on the essential traits for effective leadership, integrity is near the top of the list in all cultures that have been studied. Most scholars consider integrity to be an important aspect of ethical leadership” (p. 409).

1. The Sales Rep. A sales representative for a struggling computer supply firm has a chance to close a multimillion-dollar deal for an office system to be installed over a two-year period. The machines for the first delivery are in the company’s warehouse, but the remainder would have to be ordered from the manufacturer. Because the manufacturer is having difficulty meeting the heavy demand for the popular model, the sales representative is not sure that the subsequent deliveries can be made on time. Any delay in converting to the new system would be costly to the customer; however, the blame could be placed on the manufacturer. Should the sales representative close the deal without advising the customer