In today’s business society there are many reasons to study ethical theories and the effect it has on the development of corporations in America and throughout the world. These theories play a major role in our corporate culture and serve as the foundations to many company’s ethical standards.
When thinking of the ethical standards of a corporation, the community of individuals serving that corporation comes to mind. When we think of a community, we think of a group of people with a common background or with shared interests within a society.
It is clear that the values of the people a corporation hire influence the values of that corporation. If a corporation fosters a community with strong ethical values, the corporation will eventually be reflected in that light. So in essence, a corporation’s vision can constitute a community but a corporation’s interpretation of what is ethical and unethical can come into question.
Let’s look at Enron as an example, the individuals that were in leadership positions for that company formed a community that all shared the Gordon Gekko “greed is good” mantra; and we all know how that plane crashed and burned.
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We have to ask ourselves is it ever right to do something unethical? Is it really okay to dispose toxins in environmentally sensitive areas as long as it doesn’t exceed federal regulations? Is it ever okay to expense mileage for a customer that you didn’t visit, only spoke to on the phone?
What about awarding contracts or giving an unfair advantage to a supplier because you grew up together, even though other suppliers offered better pricing and services? These are the ethical issues that companies face daily. The need for ethical training in U.S. companies is evident especially in our current economic conditions.
Incorporating a culture with strong business ethics starts with upper management down. Management that display strong ethical values serve as a reflection of the company.
Employees must be reminded of the company’s stance on ethics practice. It’s one thing to develop an ethics policy but managers have to take it a step further by ensuring that their employees are aware of the company’s policies and by implementing an information session on a periodic basis.
It is vital that corporations today review ethical standards and practices regularly. Good ethical standards of the people a corporation hire will reflect on the company itself. Though there are many theories on ethical standards, it is the responsibility of the corporation to create a culture that foster and carry out good ethical practices for the sake of the community it serves and potentially the world.
