But few executives and managers are aware of the research on this important subject. And as I review here, the research does show that it may improve profits.
What role do regulators have in enforcing corporate ethics? Regulators set the rules and create a climate. But our book argues that you cannot regulate people into good behaviour; and much of the focus of business ethics is about how to address dilemmas where there are no laws or specific regulations to provide guidance.
As the earlier answers imply, we think that excessive regulation carries the risk of encouraging a compliance culture instead of an ethical culture. The biggest failure of the lawmakers and regulators since the rash of corporate scandals is that they have inadequately addressed the flawed incentive structure - the carrots and sticks, in simple terms - of the Anglo-American capital market system.
The thrust of the US policy response, most notably in the Sarbanes-Oxley Act, has been largely about sticks rather than carrots. Clearly penalties are needed for bad behaviour.
But it is the carrot of stock price related rewards in the boardroom that is at the root of most of the corporate scandals. This is an important question. We believe that there are many things that are unethical that ought to be illegal and often after a crisis, they become so.
Regulators have a role to play in this area. But there are also many things which are not illegal, but are unethical. Many of the things that went on at Enron were not illegal, but were unethical. In these cases, we can probably write tighter and tighter codes for regulators to enforce, requiring the unethical to be more and more innovative, but we need to reply upon individual ethical responsibility and if we are going to rely upon it, we should ensure that we reward good ethical behaviour and not punish it when it comes to promotions and compensation.
I am not sure this is an ideal, but it is not a bad place to start in trying to encourage and promote individual ethical responsibility in a commercial environment.
There seems to be an increasing number of scandals and they appear to be getting bigger. A big and still largely unrecognised one is boardroom remuneration. Is abuse of ethical and legal standards getting worse?
If so how can the situation be brought under reasonable control? Part of the thesis of our book is that the growth of equity-type incentives in the English-speaking countries has greatly increased the temptation for executives to cook the books in order to bump up bonuses and other incentive rewards.
We also cite some very eminent business leaders and observers on both sides of the Atlantic who feel that there has been a real decline in ethical standards. The trouble is that legislative efforts to stop the decline, together with more detailed governance codes, can be counterproductive.
The risk is that they transform a personal integrity culture into a compliance culture. What is clear is that ethical standards will remain under exceptionally high pressure as long as incentive structures are at odds with sound values.
I am not sure it is getting worse. I am sure that it is not getting better. There is a role for codes and controls but we emphasise in this book individual responsibility. At the end of the day, behind the corporate abuses are individuals making decisions that, perhaps on greater reflection in the cold light of day, they would not have made.
Our book is about trying to help them make the right decision first, rather than regret that they did not do so later. Modern business appears to face not only explicit ethics related pressure, but also implicit ones. Your views on this trend? Talisman is a Canadian energy company.Virtue ethics is currently one of three major approaches in normative ethics.
It may, initially, be identified as the one that emphasizes the virtues, or moral character, in contrast to the approach that emphasizes duties or rules (deontology) or that emphasizes the consequences of actions (consequentialism).
1. From an ethical point of view, big business is always bad business This statement can be discussed in two different points of view, pros and cons. B ig business most of the time bring a lot of benefits to the community such as, Maximize Sales and Profit which brings return on investment for the stakeholders, job opportunity for the community, better .
"From an ethical point of view, big business is always bad business." Discuss the pros and cons of this statement. please enter references and citations in apa style.
Course 6 of 7 in the Specialization Global Challenges in Business Global business ethics is the study and analysis of how ethics and global business are connected. How we should treat each other and our organizations in global and local contexts is the topic of this course.
Business ethics and.