BUSINESS ETHICS

Business Ethics



Business Ethics

Introduction

The Global Financial Crisis (GFC) threatened to bring world financial markets to a halt. Ethics exists in a multitude of formats from the philosophical and abstract to the realm of applied contexts defined by statutes and codes. All forms vary in their situational importance and some present as contradictory to each other. Scholars and students often find that ethical studies within a selected field follow a similar developmental pattern of moving from concrete, or black and white, to a more fluid shades-of-gray model. This topic takes a closer look at this unethical behaviour and the way in which it constitutes a failure of trust. It defines trust and outlines why it is important in the regulation of financial markets and corporate law. It then looks at three examples of breakdowns or failures of trust in the run-up to the financial crisis.

Currently, business ethics has the sound of an oxymoron to many people, whether it is every day citizens or business professionals. This is due to a common assumption that because corporations are driven by profit, and because ethical considerations usually cut into profit, it seems to follow those corporations and ethical concerns must be in opposition. In other words, the common assumption is that concern for profit and concern for ethics must be incompatible (Kirkpatrick, 2007)..

It is a fact that business and ethics do not contradict each other. Indeed, good ethics is synonymous with good management. Two principles, based on ethical theory presented that give ethical purpose of management and at the same time make managers that are more effective. Understanding that business and ethics are contradictory based on the accepted view that leaders should do, and thus how they should act. (Pinnington, 2002)

Discussion

The scope of international business has long been developed and honed the practice of commercial activities and confirmed the viability of the rules of the "market game", the behavior of entrepreneurs in the market.

About thirty years ago, the economist Albert E. Carr has published in the journal "Harvard Business Review article" Is bluffing ethical in business. "He offered to discuss such a thesis: the scope of business has developed its own rules of the game, very similar in nature to the game of poker. Here is an interesting approach: And in fact, and in another case, a lie ceases to be a lie, because all the players know in advance that the revelation of partners can be expected. In poker and in business strong element of chance is there, but ultimately the winner goes the one who plays with the same skill. To win requires a thorough knowledge of the rules, the ability to penetrate deeply into the psychology of the partners, iron self-control and ability to respond quickly and effectively to the opportunities that have arisen by chance. No person expects from the poker players in ethics. It is considered quite legitimate by bluffing "to land" from the game's close friend, even if in his arms a good ...