ETHICS IN ACTION

Ethics in Action

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Ethics in Action

Introduction

Over the past decade, population of United States has viewed a prevalence of poor ethical decision making. Instances take account of the charges of bribery against Siemens that directed to the resignation of both the chief executive officer (CEO) and the board chairman during 2007 and within this local district of blogger, the chief financial officer of the Seattle Public School System and the firing of the superintendent because of alleged embezzlement of school district funds in the year 2011. So, how managers can reduce the likelihood of unethical acts?

Discussion

Identify Common Characteristics Poor Decision Making

Good and hardworking people working in a company may also engage in unethical decisions making, particularly when they become overconfident, when corporate structures of governance are non-existent or weak, and do not recognize the complexity of the issues. However, it is significant to be confident while taking business decision, do not let overconfidence escort to unreasonable and irrational rationalization. As a result, this overconfidence and over-optimism may lead to insufficient analysis, as well as lead to harmful and overlook the business risks (Mallor, Barnes, Bowers & Langvardt, 2010).

Other significant characteristic is the weak corporate structures of governance. The prime corporate governance weakness these days is the extreme power concentration in the top management hands. Equalizing or rebalancing this control is a requirement to promote accurate financial reporting and control management fraud. To recapture the market confidence, a radical approach to corporate governance is prerequisite. And this non-existent or weak governance structures may undoubtedly show the way to unethical decisions that necessitates proper business controls and failure to notice all time. Since, these decisions may lead to the ultimate downfall of the company.

Other key characteristic of poor decision making is the lack of attention ...