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Ethical Hazards

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Ethical Hazards: A Motive, Means, and Opportunity Approach to Curbing Corporate Unethical Behavior

Original work statement “I, Mulembe), verify that this article review is solely my own work and creation and it has been prepared solely for credit in this class, and that this review, including the “main issue of the article” section has been written in my own words.”

Article Citation
Pendse, S. (2012). Ethical Hazards: A Motive, Means, and Opportunity Approach to Curbing Corporate Unethical Behavior. Journal Of Business Ethics, 107(3), 265-279. doi:10.1007/s10551-011-1037-0. Retrieved from http://ezproxy.bellevue.edu:80/login?url=http://search.proquest.com/docview/1523896341?accountid=28125
Main issue of the article
This paper is about unethical business behavior and the factors that can encourage one to participate in it. Ethics refers to standards of wrong or right in relation to responsibilities, benefits or obligations to others and society in general. They set standards or guidelines for acceptable beliefs and interactional behavior. The Enron, WorldCom and Tyco financial debacles devastated many investors and employees and brought a lot of unwanted attention and questions about business ethics. The improprieties in their accounting books revealed to the world the crooked unethical accounting practices practiced by some seeming reputable organizations.
Wondering why the Enron and WorldCom executives got involved in the scandal, the author of this article asserts that “a conjunction of motive, means, and opportunity creates ‘an ethical hazard’making questionable executive decisions more probable” (Pendse 2012). He continues to conclude that corporate unethical actions can be minimized by creating a process to identify and remove such ethical hazards, and by appointing a qualified individual to monitor and prevent the unethical behavior before it

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