I remember a “Business Ethics” seminar I took in college that confirmed everything my parents had taught me as a child. Granted its employees, customers and suppliers lose money because of this situation but then they all find a replacement company and continue on with their futures. When good conduct and morals are applied in all the levels of an organization’s structure, that is, from the junior employees to the management staff, the company is most likely headed for success.
Social learning theory provides more hope that business ethics can be taught. In the past it was assumed that all that had to be done to ward off bad behavior and unethical practices in the financial industry was to put in place regulations to help guide and encourage ethical behavior in the marketplace.
And public image is important to success in most cases, which is one of the reasons as to why business ethics are important to a company’s overall success. The various branches of ethics such as human ethics, social ethics, medical ethics and financial ethics have all defined the premises of working in their respective fields.
Research from America Online and , suggested America’s businesses lose $759 billion annually for paid work not performed directly connected to wasted time. One of the biggest aspects of business ethics is human resource management. The general public, as well as company stakeholders, have come to expect that corporations will conduct business ethically and with the highest regard for social accountability.
Examples like Texas Instruments show how a new paradigm is developing in organizations regarding the managerial focus on ethical behavior. A proactive business leader formulates a statement of organizational values that employees of the company are expected to embrace – at least while performing duties in the service of the company.