Ethics
Ethics
Managers of corporations in the modern business world have a continuous task of making important decisions that will seriously affect the long-term success of the company. When dealing with the constantly evolving legal and business issues of today, managers often discover that many gray areas of uncertainty exist. Sometimes there is no definite right or wrong answer to a given situation. It is during these times of uncertainty that many managers heavily rely on ethical standards and practices that are enforced by the corporation in its code of ethics (Miller and Gaylord 68). A manager can also follow a set of ethical guidelines that he or she has developed throughout numerous business and personal experiences. Business ethics can be defined as the focus on what constitutes right or wrong behavior in the business world and how moral and ethical principles are applied by businesspersons to situations that arise in their daily activities in the workplace (Miller and Gaylord 61). Business ethics is extremely important to a company in the long run because most of the corporations that withstand the test of time have done so by following a set of strict ethical practices and moral methods of decision making.
In order for a company to function in an ethical manner, it must first understand exactly what constitutes ethical behavior and practices. The process of determining whether an act is ethical or not greatly depends on the morality of the person who is considering the given situation and the norms and culture of the society in which the corporation functions (Miller and Gaylord 60). Although some questions of ethics are uncertain as to having a right or wrong answer, many decisions are clearly right or wrong. For example, if a corporation is participating in dumping harmful chemicals or substances into a nearby lake or large body of water, it is clearly performing in an
unethical or inappropriate manner. Other factors are unclear in the matter of
determining a definite right and wrong action, such as questions of if corporations should use a more expensive but biodegradable material that could replace cheaper and environmentally harmful materials currently being used. Decisions like these are often optional for the managers of a corporation or business and may have many pros and cons to each side of the decision. In situations like this, companies must use the best judgment possible and decide whether or not the action taking place follows the code of ethics written out by the corporation or business (Griffin 45). Ephesians 5:6-11 warns of the danger of associating with practitioners of dishonesty and unfruitful or unethical works (Holy Bible, Ephesians 5: 6-11). Individuals who practice unethical procedures may do so in order to seek substantial short-term profits. In 1985, the employees of several prominent Wall Street investment banking houses were sentenced to prison for trading illegal inside information about proposed mergers for their own personal gain (Besley and Brigham 162). This example clearly shows that while unethical conduct may produce large profits in the short run, it will ultimately result in the demise of the practitioners of unethical procedures and, most of the time, the corporations that these practitioners work for.
Developing ethical business relationships is an important factor for the long term success of a corporation or business. The practice of ethical conduct in the business world can result in the business or corporation receiving long term benefits such as avoiding fines and legal expenses, building public interest, attracting business from customers who appreciate and support ethical policies, and attracting and keeping
employees of the highest caliber. Ethical behavior also supports the economic viability
of the communities in which the business operates (Besley and Brigham 162). Therefore, ethical decisions are vital for a business to have a long and productive life.
Due to the broad uncertainty of ethical issues, several factors enforce or oversee ethical behavior within a corporation or business. One of the most important factors in developing and maintaining an ethical place of work is the attitude of top management. Managers who practice unethical business procedures have a detrimental affect on the entire business. Managers tend to set the ethical tone for a business. Employees usually adopt the practices of upper management. Therefore if the manager of a business