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
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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
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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
Back in the ninteenhundreds this was the time period where different styles and techniques of dance were created among people with different backgrounds and experiences. During this time period dance styles like tap and Jazz were created and had many people to influence this kind of dance in order for this style of dance to become as popular as it did. However, people have a controversy whether if jazz or tap dance is considered an art or an entertainment. In society, people viewed Jazz either as art or entertainment because where and when people performed there and how their personality is shown in the dance and what interpretation people get out of the performance. Tap on the other hand people had the same views as they did for jazz and most people say tap and jazz relate to each other because many of the techniques are very similar and they are all American dances that eventually evolved into different styles and how it's portrayed on the dance floor. Therefore even though these both dances have different significance in style, they both have the same journey of beginning as a form of entertainment to an art, but still having that aspect of entertainment in mind.
One issue of ethical business would be in regards to company loyalty. An employee that sees a fraudulent practice and then reports the wrongdoing to the general public or an authority figure is known as a whistleblower. Sissela Bok states that “whistleblowing makes public a disagreement with an authority or a majority view” (Bok, pg. 412). An example of whistleblowing in the real world would be in Bok’s Case C. In Case C, a newly hired assistant director of admissions has heard rumors of tampered transcripts and surrogate test takers specifically for student athletes.
The survey was performed in 2010 involving members of the Ethics and Compliance Officer Association (ECOA). They focused on the evolution of business ethics by analyzing six other studies over a span of two-and-a-half decades. Members of the survey were ethics manager, but members on the previous studies were regular employees and management. The results of the analysis of the previous studies showed that ethics programs in companies during a time span of the 1980’s through the 1990’s was used to show social responsibilities and not necessarily to enforce it throughout the company. It showed that ethics programs now that companies follow ethical laws and they are motivated to be ethical. Another result of the study showed that ethics training at companies has increased since the 1990’s due to the passing of Sarbanes-Oxley and other laws directed at ethics. The passing of the laws in the early 2000’s has led to ethics being a major component of everyday
The first challenge with developing a cutting-edge ethics program was training in a global organization. Training needed to reflect the geographic region and address issues where the company would find a subject morally significant but the general population would see as the status quo. For example, corruption is very common in the Russian economy and bribery is often part of doing business. Bribery within a globalized organization degrades its ethical reputation and can even be legally prosecuted back in the United States. Another example is that some Asian countries such as Japan and China have a culture where employees do not report the wrong doings of supervisors or the organization as a whole. The ethical concept of power distance within a culture says that a person does not challenge the higher class and following the status quo is the norm (Treviño & Nelson, 2007). Obviously, a work force not dedicated to the improvement of the organization’s products and services will fall behind the competition.
Ethics, ethical values, and social responsibility should all work in unison in a corporate business structure. These key traits are better defined as maintaining overall good business morals, obtaining employees who possess personal ethical values, and finally to behave ethically and with sensitivity toward social, cultural, economic and environmental issues. For a business to better ensure these quality business traits a code of ethics should be adopted by the business. In the cases of Bernie Madoff and Enron, the most well-known financial scandals in history, I feel, gave a major hand in pushing business all across America to have and enforce the code of ethics.
As a marketing manager, you have recently turned down Nancy Conrad for a position as sales supervisor. Nancy believes the denial was due to her gender, and she has filed a sex discrimination charge with the EEOC. Explain the steps the EEOC will use to process the charge; include Nancy's options during the process.
This paper will obtain information about a researched issue that deals with business ethics. The paper will include a summary of the Article and issue. This paper will also touch on the following topics, what seems to be the basis of the issue, what ethical change, deficiency, or conflict brought it about, and how did the organizational leadership come into play. The paper will conclude by proposing a plan for revising the ethical standards and
With the globalization in world budget, business ethics became essential necessity for companies. Business to business ethics of applicable behaviors in the long-term achievement of businesses in a positive direction, otherwise it has been the supremacy to adversely affect the behavior. As a result, the breakdown of ethical scandals has emerged released in the United States of America and Europe. Business, which
How has our recent dismay, concerns, and the actions of firms concerning ethical thinking, or the lack thereof relates to the past observations and does our recent laws and directives, such as SOX create as safety net to investors, employees, and the economy as well as drives the ethical decision making of CEO’s and CFO’s of public companies? Who benefits?
Ethics are a major issue which is a reason why the Sarbanes-Oxley Act was implemented. Before the Act, firms focused on growth but not as much on professional values. Revenue was the driving factor in auditing firms, and auditors were required to find new clients, keep existing clients, and cross selling. There were also penalties for not obtaining these requirements which could lead to termination (Jones III & Norman 2006). Since the Act many organizations have now implemented a code of conduct (ethics) which sets standards of how an auditor is supposed to act or a place to go to seek advice on handling different situations. The code of conduct or ethics can be viewed as a way an organization wants one to act or behave (Canary & Jennings 2007). Since implementation ethics is being taught more in college classes, and the reason for this is because of the huge scandals that have occurred. One study showed that the key leadership roles in a company often have a MBA, so teaching ethics will reach those leaders, and possibly prevent future ethical dilemmas (Sulivan, D. 2010).
In this essay I will be answering the question; Are businesses that act unethically destined for failure? It’s no secret that many, if not the majority, of the world’s most famous companies have been accused of acting in an unethical manner; but the unasked question is why do so many get away with acting unethically. The definition of the ethics is “the study of practices and policies in business, to determine which are ethically defensible and which are not” (Jennifer Jackson 1996 page one)
It finally has been acknowledged that simply taking an ethics class does not provide the same level of experience as providing a more integrated approach to ethics within the learning process of a student within graduate business school. Gaining the ability and competence to understand ethics is only first step to what awaits the new leaders who will be required to live an ethical life but also sustain and encourage a corporate ethical environment from which staff can also make ethical decisions. The recent financial scandals along with the younger generation’s concerns for the environment has elevated and renewed the importance of corporate leadership in providing more transparent and straightforward accounting reports as well as addressing other issues that do not encourage a culture of ethics within their organization. Wrongdoing should be addressed and ethical decisions need to be encouraged and supported instead. CEOs and board members are just beginning to present themselves and their organizations as ethical decision-makers who are responsibly provide good and wise solutions for stakeholders of the company. In the Journal of Business Ethics, “Business Ethics in North America: Trends and Challenges” the authors reviewed and
Dark and treacherous storms occur everywhere in the vast world that we know. The most dangerous storms though are hurricanes, the engines of destruction. Hurricanes are deadly storms for many reasons. One may consider the characteristics, impact, and some interesting facts about the dark and treacherous hurricanes that are found on this planet. Hurricanes are very destructive and dangerous for many reasons.
With Enron, the responsibility and blame started with Enron’s executives, Kenneth Lay, Jeffrey Skilling, and Andrew Fastow. Their goal was to make Enron into the world’s greatest company. To make this goal a reality, they created a company culture that encouraged “rule breaking” and went so far as to “discourage employees from reporting and investigating ethical lapses and questionable business dealings” (Knapp, 2010, p. 14). They insisted the employees use aggressive and illegal
The issue of business relations with government has increasingly become a key issue of business ethics. Some of the many questions raised are