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The Role Of Business Ethics In The 1980's

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The 1980’s

 Things like bribery, illegal contract practices, influential peddling, deceptive

advertising and financial fraud shaped the development of business ethics in

the 1980’s.

 Ferell et al (2013) studies revealed the military developed a strategy called the

Defense industry initiative (DII) to address some of these issues in their own

industry. It was designed to guide corporate support for ethical conduct in the

armed forces.

o Six principles of this initiative were as follows;

i. Ethical training for the workers.

ii. The support of a code of conduct.

iii. An open atmosphere where workers can report any kind of

violation that the come across without any fear of retribution.

iv. The preservation of integrity in the …show more content…

o There was a growing group of institutions, which shared the same

interests to promote business ethics so that it could become a field of

study.

 At the time of 1980, the Reagan and Bush eras took the view that self-

regulation (organizations being able to control and regulate their own

operations) rather than regulation by the government (where the government

controls the operations of an organization) was in the interest of many people.

o Whereas because of governments not being able to control the

operations of a company, this meant that organizations had more

freedom to make decisions in their day today operations at local

and international levels.

o However, the government was still developing some laws for the

organizations, which were mostly involved in misconduct.

Literature review:

 During this period, at the time when business schools were offering courses

that were related to business ethics, the rules of business were changing at a

very fast rate only because of less regulation from the government.

o Organizations that were operating at a local level started operating …show more content…

 In addition, the appearance of corporate liability for personal damages of lets

say employees, played a big part in the evolution of business ethics.

o This was due to the exposure of some of the illicit practices that were

conducted by some of the tobacco companies in Europe and the ethical

misconduct from the fraud and financial mismanagement scandals that

were exposed.

 To tackle this, Bill Clinton’s administration set the conditions that ushered the

development of ethical compliance programs based on the principles that were

outlined by the DII. These programs codified legal incentives to reward

companies for being accountable & taking measures to prevent misconduct by

implementing strategies that could monitor internal and ethical practices by

the organizations.

o While the Clinton administration program gave support to self-

regulation and free trade for the organizations, it also supported the

concept of organizational accountability as well as misconduct and

damages.

Literature review:

 During this period (1990’s), there was an attempt, which was made by

business managers, academics and the government in the US to link up

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