ETHICAL BEHAVIOR IN THE CONDUCT OF BUSINESS

The Role That Ethics and Ethical Behavior Play In the Conduct of Business

Table of Contents

Table of Contents2

Executive summary3

Introduction4

Analysis4

Code of Conduct6

Ethical Behavior and Business7

Successful Performance Appraisers11

Unsuccessful Performance Appraisers11

Ethics: The Foundation13

Problem Description13

What is the role of business?13

Increase shareholder value14

Common Good14

So what is the problem?15

Solutions15

Stakeholders15

Enlightened Self-Interest16

So what is the solution?18

Application: Ethics and business decisions19

Enron20

Hypothetical conflict between stakeholders20

Conclusion23

References24

Executive summary

This paper aims to focus on the role that ethics and ethical behavior play in the conduct of business. For this purpose I will discuss ethical behavior in the business world. In particular, the question of what ethical behavior actually involves will be analyzed in depth. Furthermore I will cover do ethics play into a business decisions? Ethics is a topic that can be discussed at length without reaching universal consensus, and this text will not be an exception. However, it should shed some light on the issue of ethical corporate behavior. The Role That Ethics and Ethical Behavior Play In the Conduct of Business

Introduction

The objectives and responsibilities of business will be covered, as well as the ethical obligations of various parties. Scholars have declared that business and ethics are required partners; a business cannot succeed without sticking to good ethics. But what actually is ethical behavior? It may even be debatable what can be considered a successful business.



Analysis

The chances are very good that this is not a question that you have asked yourself, and it is also quite possibly a question that nobody else has ever asked of you. However, if your business is going to be successful, or retain any successes that it has had in the past, ethics must absolutely play into all of your business decisions. (Colvin, 2002, 66) Too often, the general public believes that all business decisions are based on the company's bottom line. Unfortunately, it is unethical companies who have given the public this perception; however there are countless companies in existence who actually put ethics ahead of the bottom line - successfully. Is your company one of these?

Here are the facts. When a business is not conducted in an ethical way, it fails. It may not fail quickly, but in the end, it does fail. Enron is an example of this. (Colvin, 2002, 66) The credit crisis that we are currently facing is also an example of this. Neither of these industries adhered to any type of ethical code, and while the credit industry has not completely failed to date, it is in a steep decline, causing economical situations that include foreclosures and lay offs at an alarming rate. Ethics, as a whole, covers numerous areas of the business world, and even numerous aspects of your company. Ethics should be used to create policies that cover human resources, marketing, research and development, accounting, public safety as it relates to your products or services, and so much more. (Colvin, 2002, 66) When you create policies that are originally based on your own ethics policy, you are actually putting ethical business practices ...