What Does It Mean To Be Ethical?
What does it mean to be ethical? According to google the definition of ethical is “relating to moral principles or the branch of knowledge dealing with these”(Google). Being ethical has a lot to do with being moral. It has to do with knowing the difference of wrong and right. In business being ethical is a huge part. Being ethical in a business is a major key to success. Being ethical in a business can be the difference to make or break. When it comes to making decisions in a business you can either do the right or wrong thing. For example when it comes down to paying employees some businesses do the unethical thing and pay them cash to avoid taxes. When a business or company is ethical it can help them build a good reputation. Having
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The persons involved in the scandal are “The three accused managers, former CEO L. Dennis Kozlowski, former Chief Financial Officer Mark Schwartz, and former general counsel Mark Belnick, have been indicted for fraud and theft by the Securities and Exchange Commission (SEC) as well as their former employer.” (TycoFraud, 2006). The men were accused of loaning themselves money interests free from Tyco for personal use. They were also found to have “used company money to silence those who suspected them of fraud” (TycoFraud, 2006). In the end the total amounts to have been stolen from Tyco added up to $600 million. Tyco's stock prices were pretty high back in 2001. Before the scandal surfaced the “stock price reached a company record of $60 a share and dropping nearly 80% after the scandal” (Gara, 2012) resulting in a stock price of around $12. Tyco`s response to the scandal was to find out what happened, get rid of the problem, and start fresh. The issues Tyco discovered were “1. Unethical Leadership, 2. Unethical business practice of subordinates, 3. Unethical auditing practice on Tyco's business”(Romero, 2017). To start off they changed the entire management team within a few months to start fresh. After changing management they still had to make other changes. Tyco had to separate finance from operations, doing so would decrease the risk of personnel from operations to commit fraud like those who did in the scandal. Because Tyco is financially stable fixing those problems allowed the company to continue operating
The persons involved in the scandal are “The three accused managers, former CEO L. Dennis Kozlowski, former Chief Financial Officer Mark Schwartz, and former general counsel Mark Belnick, have been indicted for fraud and theft by the Securities and Exchange Commission (SEC) as well as their former employer.” (TycoFraud, 2006). The men were accused of loaning themselves money interests free from Tyco for personal use. They were also found to have “used company money to silence those who suspected them of fraud” (TycoFraud, 2006). In the end the total amounts to have been stolen from Tyco added up to $600 million. Tyco's stock prices were pretty high back in 2001. Before the scandal surfaced the “stock price reached a company record of $60 a share and dropping nearly 80% after the scandal” (Gara, 2012) resulting in a stock price of around $12. Tyco`s response to the scandal was to find out what happened, get rid of the problem, and start fresh. The issues Tyco discovered were “1. Unethical Leadership, 2. Unethical business practice of subordinates, 3. Unethical auditing practice on Tyco's business”(Romero, 2017). To start off they changed the entire management team within a few months to start fresh. After changing management they still had to make other changes. Tyco had to separate finance from operations, doing so would decrease the risk of personnel from operations to commit fraud like those who did in the scandal. Because Tyco is financially stable fixing those problems allowed the company to continue operating