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Applying Ethics in Business

In: Business and Management

Submitted By Jjackson
Words 1664
Pages 7
Applying Ethics in Business
Judy Blair-Jackson
Kaplan University

Ethics in Business Since the past decade more companies are focusing on incorporating ethical principles in business transactions and decision-making. One of the factors that have caused this shift on ethical focus is the financial crisis in the corporate world. Many reputable companies, CEO’s, CFO’s, and auditors have been implicated for fraudulent business activities. It is hoped that if businesses focus on building an ethical culture in the organization this may act as a deterrent to management and employees engaging in unethical business transactions and decision-making. Schein (1985) posits that the “organization’s culture is a cognitive framework, consisting of attitudes, values, behavioral norms, and expectations shared by organization members” (as cited in Brooks & Dunn, 2012, p. 254). Organizational culture can positively or negatively affect employees’ behavior. Where there is no focus of management on ethical behavior, employees may get the wrong message about the company’s stance on ethical principles. On the other hand where management displays and discusses ethics with employees, this shows a commitment from them that the company’s values ethical principles and behaviors. Management’s commitment and support to ethical standards must be evident through their actions. Brooks & Dunn (2012) stated that “it is vital that organizations create an environment culture where appropriate shared values are created understood, fostered, and committed to by all concerned” (p. 254). Organizations are provided with many tools to help create the desired organizational culture. Kusyk (2010) noted three myths that can affect organizational ethical conduct doing business across cultures. These include the eclipse of etiquette over ethics; tolerance can handle all problems, and business...

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