Ethical Reflection

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Ethics Reflection Paper1

Ethics Reflection Paper

STR/581
January 12, 2011
Robert Whipple

Ethics Reflection Paper

Recently, a growing mistrust of business executives has increased among the general population. People are unwilling to hand over their money to any business, uncertain if their hard-earned money will be used as requested or be used to line the pockets of a rich executive. Because of this, business owners now have to work harder to earn the trust of their potential customers. Even more, they have to prove their worthiness to investors who may not be willing to take the risk. To lower these concerns, it the best solution for business owners is build their business on a foundation of ethical conduct and social responsibility. A strategic plan should include the ethical standards and codes of conduct for the organization as a whole, particularly in response to shareholders needs. Many of the financial profits come from the management of shareholders' investments in the company. This means that the business is using the money and trust of their clients to make returns on their investments. If the executives mismanage those funds, potentially causing a collapse like the Enron scandal, the shareholders lose everything they have. However, with false accounting reporting, it was easier for these executives to avoid prosecution. The Sarbanes-Oxley Act of 2008 mandates that businesses operate and report ethically, with full-transparency for employees, executives and stakeholders alike. Further more, the Act makes both the CEO and CFOs responsible for any errors and misappropriations found within their financial statements, and to accept the consequences of any fraudulent actions. For business owners today, I think it is important to be aware of their responsibility to operate ethically because it is a social duty to their shareholders, customers and themselves. Building these traits into their...
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