How to Improve Ethics in a Global Economy
April 8, 2009
[pic]Ethical issues are a major concern for organizations because of the far-reaching impacts they can have on customers, shareholders, employees, and the overall company. Many influences impact the ethical behavior of employees and thus impact the overall company; however, managers can take proactive steps to positively influence ethical behavior.
There are many ways a company can be negatively impacted by ethical issues. Customers and other employees may be impacted by the unethical behavior of company employees such as when “greed overtook concerns about human welfare when the Manville Corporation suppressed evidence that asbestos inhalation was killing its employees, or when Ford failed to correct a known defect that made its Pinto vulnerable to gas tank explosions following low speed rear-end collisions” (Sims, 1992, p. 3).
Over the last several years, the public watched when the Martha Stewart insider trading ethics issue played out on television and saw the negative impact it had on her company, her reputation, her personal finances, and even her personal life; culminating in jail time. People were also engrossed watching the Enron scandals unfold, which ultimately resulted in the downfall of that company. According to the findings of Ernst & Young’s 10th global fraud survey, “13% of US respondents admitted that their organization had been asked to pay a bribe to retain or win business in the last two years” (2008, p. 610).
Poor ethical behavior of employees can result in not only fines, jail time, and lawsuits, but loss of customers, loss of brand equity, lost productivity, and even lost revenue. “US industries lose about $600 billion a year from unethical and criminal behavior” (Kinicki and Kreitner, 2008, p. 25). While news media mainly communicate ethics stories of the largest magnitude, ethics violations can include such things as doing personal work during office hours, cheating on... [continues]
April 8, 2009
[pic]Ethical issues are a major concern for organizations because of the far-reaching impacts they can have on customers, shareholders, employees, and the overall company. Many influences impact the ethical behavior of employees and thus impact the overall company; however, managers can take proactive steps to positively influence ethical behavior.
There are many ways a company can be negatively impacted by ethical issues. Customers and other employees may be impacted by the unethical behavior of company employees such as when “greed overtook concerns about human welfare when the Manville Corporation suppressed evidence that asbestos inhalation was killing its employees, or when Ford failed to correct a known defect that made its Pinto vulnerable to gas tank explosions following low speed rear-end collisions” (Sims, 1992, p. 3).
Over the last several years, the public watched when the Martha Stewart insider trading ethics issue played out on television and saw the negative impact it had on her company, her reputation, her personal finances, and even her personal life; culminating in jail time. People were also engrossed watching the Enron scandals unfold, which ultimately resulted in the downfall of that company. According to the findings of Ernst & Young’s 10th global fraud survey, “13% of US respondents admitted that their organization had been asked to pay a bribe to retain or win business in the last two years” (2008, p. 610).
Poor ethical behavior of employees can result in not only fines, jail time, and lawsuits, but loss of customers, loss of brand equity, lost productivity, and even lost revenue. “US industries lose about $600 billion a year from unethical and criminal behavior” (Kinicki and Kreitner, 2008, p. 25). While news media mainly communicate ethics stories of the largest magnitude, ethics violations can include such things as doing personal work during office hours, cheating on... [continues]
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(2010, 09). Improve Global Economy. StudyMode.com. Retrieved 09, 2010, from http://www.studymode.com/essays/Improve-Global-Economy-414588.html
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"Improve Global Economy" StudyMode.com. 09 2010. 09 2010 <http://www.studymode.com/essays/Improve-Global-Economy-414588.html>.
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"Improve Global Economy." StudyMode.com. 09, 2010. Accessed 09, 2010. http://www.studymode.com/essays/Improve-Global-Economy-414588.html.
