Business Ethics during a Bad Economy



Business Ethics during a Bad Economy

Introduction

The past few years have seen numerous scandals and most of them revolve around abuse of ethics. Examples of corporations that have fallen victim and crumbled because the organization was not functioning ethically include Enron and WorldCom. Examples such as these are one of the main reasons why ethics has become one of the core components of functioning business management. Additionally, while most organizations may enforce good ethical practice while business is booming, the true test of ethical practices comes when the economy is suffering. Such times are when ethics becomes critical and most important. The purpose of this paper is to highlight the role ethics in a bad economy.

Discussion

There is quite a famous proverb that details how most function during desperate times; “Desperate times call for desperate measures.” When an organization is going through a rough patch, most managers and leaders are more than tempted to take the easy way out. Those that are committed to their projects are tempted to utilize shortcuts and use means that they normally wouldn't. Such actions invoke controversy and scandals; often landing the management in tabloids, front page news and repetitive talk shows where their reputation is ripped to shreds and the organization suffers the worst kind of publicity. Contrary to popular belief, if organizations and their respective management and leaders adhere to ethical norms in the face of adversity, the likelihood of their success and survival increases.

Those that do not understand the ramifications of their unethical ways tarnish their own reputation but the organization's reputation as well. Furthermore, they are directly affecting direct and indirect shareholders because of their actions. If the unethical practices are something that cannot be handled internally, the likelihood of legal ramifications is quite high. Examples ...