The Role of Ethics and Law in Creating and Maintaining Efficient Markets

In one’s professional career one might be in a situation to consider not only the ramifications of one’s ethical choice, but also how ethical one’s decision is as a whole. In my career, I have never been put in an ethical dilemma, but at a juncture in my career in the finance industry, it is possible I will. In the industry of finance, one could be in a position that enables them to embezzle, whether this is in an accounting position, a financial advisor, or even a bank teller. In each of these positions, one could be in a dilemma of considering embezzling, otherwise known as stealing. To most people stealing is clearly unethical, but it could depend upon to which ethical approach one subscribes. This paper will discuss; what options one has in this dilemma, how certain ethical approaches would guide one’s decision, and my personal opinion on which approach I would utilize.

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

Historically, business ethics was of little concern to the majority. However, beginning around the early 1970s, ethical commercial policies and procedures became significantly important. Prior to the 1970s, the term business ethics was seldom a discussion. Most companies simply did not care about the ethics of their business operations, mission or corporate behavior—they were focused totally on the bottom line profits. Conversely, colleges and universities began to offer courses that focused on “Logic,” “Epistemology,” and “Ethics” in the late 1960s and early 1970s. However, most of these courses involved highly theoretical, esoteric concentrations, seldom found in business curriculums. In many cases, these subjects were offered to liberal

The bankruptcy of Lehman Brothers and subsequent financial market crash ushered in a time where many financial service companies were bailed out because they were deemed “too big to fail”. This term describes the large, intertwined relationship that many of the top banking and finance institutions have on our economy, and the devastating consequences that would transpire if these institutions were allowed to fail and cease to exist. While controversial, bailing out banks and other financial institutions was absolutely necessary to maintain the economic integrity of our nation. Raising objections to the ethical nature of a business being “too big to fail” does not address the deep underlying issues that led to this sort of thing being a possible whatsoever. With this being said, the aspects

The purpose of this unit is to introduce high school/college students to the idea that business concepts have a direct relationship with social responsibility. By using a preselected code of ethics, the audience will learn about business concepts such as integrity, objectivity, competence, fairness, confidentiality, professionalism, and diligence, and consequently the importance they have in the business field. Through both, independent and instructional activities, students will gain knowledge on how different business concepts from a code of ethics affect businesses’ daily practices where we develop.

This paper was prepared for Ethical Leadership – MGT 310, taught by Professor Kristen Irey

The business world is where most people work during their lives to make a living for themselves. Those same businesses run on a thin line of being ethical or crossing that line and ending up splayed on the front page of the next day’s news. During the first two chapters of Business Ethics: Ethical Decision Making and Cases, it is discussed that business may allow themselves to slip into being unethical, and pay the price for a greater reward. Ron Carucci, a writer for Forbes.com states in his article, “Will Your Ethics Hold Up Under Pressure”, that “Helping businesses to perform just a little better, just a little more ethically, is arguably the most important project humanity can undertake.” Having ethics in business does aid a company in

To what degree social responsibility should be considered in the conduct of business is an issue that has been debated extensively over time. While there are those who claim that businesses must fully embrace social responsibility, others are convinced that such a move would affect the ability of business entities to fully exploit the opportunities at their disposal. It should however be noted that in those instances where businesses neglect their ethical (and legal) mandate, the backlash is often severe.

If I will be the future business manager of Del Co., I have a responsibility to uphold ethical standards in my own action and decision. Moreover, I have to fulfill this responsibility by making sure that employees are aware of the organization’s ethical code and have the opportunity to ask questions to clarify their understanding. Additionally, I am responsible for creating and implementing change to a company’s ethical codes. These changes will help the company “right the ship” after a slew of mishaps and missteps, by both upper management and entry level employees.

Maddux, Dorothy, Maddux, Robert B., Sanders, Marian. (1989). Ethics in Business: A Guide for Managers. Boston:Course Technology Crisp.

Question 1 Discuss the market system and the need for ethics in business and distinguish it from the law and concepts of virtue and morality.

Ethics can be portrayed as the essential, composed examination of how we should act — particularly, how we should urge the journey for self-interest when our exercises impact others. Business Ethics can be characterized as the essential, composed examination of how people and associations should bear on in the domain of exchange. In particular, it incorporates examining appropriate objectives on the mission for self-interest, or (for firms) advantages, when the exercises of individuals or firms impacts others(MacDonald 2010). Ethics relates to the concepts of governance and sustainability. The business world has control over the world 's benefits and the lives of a considerable number of people, so it is essential that the people who work inside the business world have an understanding of various good strategies for knowledge to deal with their fundamental initiative(BIRT et al. 2012).

Throughout this course I have learned many aspirational aspects of what a leader is and the characteristics that it will take to become an effective leader. Reflecting back on where I am in my career has definitely given me an eye opener as to the many skills that I will need to acquire in order to become a leader that is effective within my current organization. This course has given me some insight as to the meaning of true ethical leadership. One specific thing that I learned from this course was that a leader’s choices are influenced by their moral development. Ethically, these types of leaders help followers deal with conflicts by reflecting change.

My form of business includes finances, mainly accounting and auditing. As I progress towards my accounting degree, I found out that there are many issues that I have to deal with in regards to the business itself. Eventually, finances also have to go through ethical issues. The ethics of financial business is determined mostly by the numbers, but it also recognizes the business environment, as well. As I realized, there are many ethical issues affiliated with finances; some financial results are the ethical dilemmas. Some examples of these issues are marketing strategies, conduct in the workplace, and financial behaviors. In my future profession, I will be concerned with the ethical decisions that I have to make, and where the line draws between ethics and law.

The importance of ethical business is not new. Every long-term successful business has clearly understood the need for ethical business practices. There are lessons to be learned, both positive and negative, from businesses around the world. CEOs must work hard to find a balance between profits and public image by learning from history, understanding the evolution of business ethics, and understanding the social responsibility of businesses.