Premium Essay


In: Business and Management

Submitted By rafeed81
Words 6492
Pages 26

|A History of Business Ethics |
|By Richard T. De George |
|The term 'business ethics' is used in a lot of different ways, and the history of business ethics will vary depending on |
|how one conceives of the object under discussion. The history will also vary somewhat on the historian—how he or she sees |
|the subject, what facts he or she seeks to discover or has at hand, and the relative importance the historian gives to |
|those facts. Hence the story I'm going to tell will be somewhat different from the story someone else might tell in various|
|particulars, and I hope that instead of being a dull recitation of facts it might in fact prompt some discussion at the end|
|by those who would tell a somewhat different story. |
|The story I will tell has three strands, because I believe the term business ethics is used in at least three different, |
|although related, senses. Which sense one chooses therefore gives priority to nature of the history of the topic. The |
|primary sense of the term refers to recent developments and to the period, since roughly the early 1970s, when the term |
|'business ethics' came into common use in the United States. Its origin in this sense is found in the academy, in academic |
|writings and meetings, and in the development of a field of academic teaching, research and publication. That is one strand|
|of the story. As the term entered more general usage in the media and public discourse, it often became equated with either|
|business scandals or more broadly with what can called "ethics in business." In this broader sense the history...

Similar Documents

Free Essay

Post Mortal

...Shaiann Robinson Book Review The Postmortal starts off by explaining that a collection of material was found in rubble after the Great Correction took place. The material that was found were just pages written by lawyer, John Ferrell. The pages consisted of what life was like during 2029 to 2079. To get further into The Postmortal, the story focuses on a man by the name of John Ferrell who before it was legal went and got a cure that made his body freeze from aging. This cure did not stop him from dying, he just wouldn’t die of old age. The cure was created by Graham Otto. Because the cure had not fully been tested and Otto found out it had been offered to the black market he immediately back the presidents ban on this cure. Well doing that made it more popular to have and many people found a way to get it done. John Ferrell was referred to this Dr. who goes by Dr. X. John went to meet him and receive the cure. Once he reached the apartment the Dr. explained exactly how the cure worked and what do expect when receiving it. After hearing it all John made the decision to get the cure and two weeks later he fully had the cure. John was reluctant to tell anyone but his roommate Katy always has a way to get stuff out of him. Him and Katy were roommates and great friends, so he shared with her that he got the cure for $7000. After he explained all that he knows about the cure, Katy decided that she wanted the cure. John took her to get the cure once arriving there he got......

Words: 1360 - Pages: 6

Premium Essay

Whistle Blower Rewarded by Fbi

...You never hear a lot of medical business ethic issues. Dr. Bander, from Saint Louis University, used to work for a company called Gambro Healthcare. According to multiple websites, Gambro Healthcare is the world’s third largest kidney dialysis service provider (Savat, 2011). Well, when you think of healthcare, you think of health insurance, customer service, and advertisements. Not in this case. Dr. Bander worked for Gambro as a chief medical officer from 1995 to 2000 (Vitale, 2011); he stated that Gambro was defrauding Medicare and Medicaid out of hundreds of thousands of dollars (Savat, 2011). Dr. Bander had to pay lawyers and filing fees in order to get the case moving (Savat, 2011). The lawsuit was filed in 2001 (Vitale, 2011). The Federal Bureau of Investigation (FBI) began to investigate. This threw Gambro way off track they began to panic. Federal prosecutors said at the time of the 2004 settlement that Gambro overbilled Medicare and Medicaid by setting up a shell company to inflate the billings. The shell company pleaded guilty to a felony charge of execution of a health care fraud scheme (Patrick, 2011). Gambro did what any business would do, if guilty, they paid the plaintiffs off. In an agreement three-and-a-half years later, 2004, Gambro paid $350 million in civil and criminal penalties to settle claims it defrauded Medicare and Medicaid out of hundreds of millions of dollars (FBI, 2010). This agreement, made in December 2004, remains the largest fraud settlement...

Words: 1309 - Pages: 6

Free Essay

Case Study 1: Monsanto Attempts to Balance Stakeholder Interests

...dry area such as Africa. Opponents of genetically modified crops have various reasons for believing that these products will have a negative effect on the people and insects that consume it. Monsanto has a history of unethical cultures that have had a negative effect on many stakeholders such as the environment, plants, animals and humans. The benefits of growing genetically modified seeds for crops do not seem to outweigh the negative consequences of using them. In an effort to manage the potential harm to plant and animal life from using products such as Roundup, Monsanto should adhere to the code of ethics and follow the EPA’s guidelines. “Ethical culture is acceptable behavior as defined by the company and industry” (Ferrell, Fraedrich, & Ferrell, p. 15). Monsanto’s seems to have a history unethical business culture, which is effectively responding to certain stakeholders (stockholders) while unsuccessfully responding to most (environmwent. Doing what’s best for the stockholder seems to be the main goal of Monsanto. When a company that is already seen as controversial uses tactics such as bribery to meet certain standards and bypass certain studies, consumers should be...

Words: 999 - Pages: 4

Premium Essay

Business Ethics Case Studies

...was published in The Courier-Mail on 14 March 2011. The article details how Virgin Blue allegedly discriminated against two female employees by forcing them to take redundancies after confirming they were pregnant or returning from maternity leave (Marx 2011, p. 1). Subsequently, both employees have initiated legal action against Virgin Blue who ‘has denied any wrongdoing and vowed to fight the claims’ (Marx 2011, p. 2). The article raises three ethical issues. Firstly, it addresses the expectation that businesses should not discriminate against employees on the basis of gender (Ferrell, Fraedrich & Ferrell 2009, p. 70). Secondly, it highlights that abusive or intimidating behaviour is not acceptable in the workplace (Ferrell, Fraedrich & Ferrell 2009, p. 64). Thirdly, it identifies the role that an effective ethics program can play in avoiding ethical and legal problems (Ferrell, Fraedrich & Ferrell 2009, p. 212). Businesses should not discriminate against employees on the basis of gender. Discrimination refers to ‘the making of a difference in particular cases, as in favour of or against a person or thing, especially when arising from prejudice based on race, ethnicity, sex, religion, age etc’ (Discrimination 2011). Virgin Blue allegedly discriminated against Leonie Vandeven by forcing her to take a redundancy package after she confirmed that she was pregnant (Marx 2011, p. 2). Vandeven was made redundant despite receiving a performance review, which rated her as......

Words: 4129 - Pages: 17

Premium Essay

Merit Increases this Nike case study include several cases of human abuse, labor rights violations, and environmental problems. The human abuse was the working conditions for the workers in these factors consisted of poor working conditions; child labor, widespread harassment, and abuse have all been issues for the computer (Ferrell, Fraedrich, & Ferrell, 2011). In addition, there were accusations have included deficiencies in health and safety conditions, extremely low wages, and indiscriminate hiring and firing practices (Ferrell, Fraedrich, & Ferrell, 2011). The environmental problems by the industry in general and Nike specially, are increased water deficits; climate change; pollution of land, air, and waterways; and large fossil fuel and raw material consumption (Ferrell, Fraedrich, & Ferrell, 2011). The ethics training and communication program could have prevented Nike from encountering these ethical issues. Nike’s management has failed to manage and inspect health and safety conditions. Ethic training can educate employees about the firm’s policies and expectations, relevant laws and regulations, and general social standards (Ferrell, Fraedrich, & Ferrell, 2011). For example, if the supervisors and employees of the factories would...

Words: 332 - Pages: 2

Free Essay

Coca-Cola Ethics

...Provide a summary of the company, and the facts and issues of the case. According to Ferrell, the Coca-Cola Company is the world’s largest beverage company, and markets four of the world’s top five leading soft drinks. The company operates the largest distribution system in the world, which enables it to serve customers and businesses in more than two hundred countries. The Coca-Cola Company estimates that about 85 percent of its sales come from outside the United States (Ferrell). Former CEO Roberto Goizueta once said “Coca-Cola used to be an American company with a large international business. Now we are a large international company with a sizable American business” (Ferrell). According to Ferrell, Coca-Cola is the most-recognized trademark and brand name in the world today with a trademark value estimated to be about $25 billion. Coca-Cola’s vision for sustainable growth is fostered by being a great place to work where people are inspired to be the best they can be, by bringing the world a portfolio of beverage brands that anticipate and satisfy peoples’ desires and needs, by being a responsible global citizen that makes a difference, and maximizing return to share owners while being mindful of their overall responsibilities (Ferrell). While Coca-Cola’s vision statement may sound ethical, they have had several unethical issues come about in the past decade. According to Ferrell, in the early 2000’s Coca-Cola was involved in racial discrimination, misrepresenting......

Words: 2304 - Pages: 10

Premium Essay

Predictive Policing

...writing assignment. Phil Knight founded Nike (formerly known as Blue Ribbon Sports) back in 1964 with the help of Bill Bowerman. Phil wanted to create a new company that could be of competition for Adidas and Puma. Nike started distributing for a shoe company out of Japan but soon came up with its own brand (Ferrell, 2013). The common issue of supply and demand took over the company and Nike began using overseas manufacturing companies in Third World countries. This raised an eye for many labor and human rights activist which put Nike under many legal issues. “Nike’s response to the issue has been considered by critics to be more focused on damage control than on a sincere attempt at labor reform” (Ferrell, 2013, p. 495). Nike’s Failure to Address Corporate Social Responsibility Early Ferrell (2013) discuss what a senior from Harvard University referred to as the five stages of corporate responsibility. They are as follows: 1. Defensive: “It’s not our fault.” 2. Compliance: “We’ll do only what we have to do.” 3. Managerial: “It’s the business.” 4. Strategic: “It gives us a competitive edge.” 5. Civil: “We need to make sure everybody does it” (Ferrell, 2013). In the beginning, Nike was in the defensive stage. In an article from the Journal of Business Ethics (2005), author Kristen Bell DeTienne discusses how Nike responded to their first sweatshop allegations. Nike claimed “that the factory conditions were equitable, the laborers were fairly paid, and......

Words: 1351 - Pages: 6

Premium Essay

Business Ethics

...who want to justify varying in moral judgment. (Fraedrich, Ferrell, & Ferrell, 2013) This type of behavior may cause legal and reputation issues for the individual and business, if actions committed are outside of ethical and legal scope of the business home country. Cultural relativism is a good thing when trying to not have an ethnocentrism view to one own personal perception of values (Schnapper, 2009). Yet, the individual should first follow the law and code of ethics standards of their company base country. Then the individual should uphold their personal values morals and last the visiting country code of ethics. If there is conflict with the business code of ethics verse the country’s ethics, then consult with the business legal/ethics department for assistance. To help with the transition to the new assignment I would also advise to speak with the legal/ethics departments for refresher training and questions before the trip. B. I would suggest my mentee to aspire to be an ethical leader who is has qualities such as compassion, fairness, self-discipline, respect, and courage. (Education, 2008) With these leadership qualities, my mentee should have a sense to do the right thing proactively. He or she also should consider all stakeholder’s involved when a giving decision. My mentee should be holistic in he or she’s approach in decision, but also competent and transparent. (Fraedrich, Ferrell, & Ferrell, 2013). I would suggest to my mentee being careful to......

Words: 1215 - Pages: 5

Premium Essay

The American Red Cross

...Determine the impact of this event on ARC’s “benefits of business ethics” (employee commitment, investor loyalty, customer satisfaction, and bottom line). Business ethics includes the principles and standards that guide behavior in the world of business. The ethical behavior of a company is being judged and determined by its stakeholders. They may not always be right but their judgment affects the company’s reputation in society. There are several benefits of business ethics. Ethics contribute to (Ferrell, Fraedrich, & Ferrell, 2011, pp. 18-21): • Employee commitment – comes from employees who believe their future is tied to that of their organization and their willingness to make personal sacrifices for the organization. • Investor loyalty – ethical conduct results in shareholder loyalty and can contribute to success that supports even broader social causes and concerns. • Customer satisfaction – one of the most important factor in a successful business strategy; a company must continue to develop, alter, and adapt products to keep pace with customers’ changing desires and preferences and it must seek to develop long-term relationships with customers and stakeholders • Profits – must have adequate financial performance in order to nurture and develop an ethical culture. Because of the actions of the American Red Cross following 9/11 and Hurricane Katrina, their benefits of business effects were damaged. Employee commitment wavered because of the actions of the......

Words: 1356 - Pages: 6

Premium Essay

Petco Develops Successful Stakeholder Relationships

...Running head: PETCO DEVELOPS PETCO Develops Successful Stakeholder Relationships Ethics and Advocacy for HR Professionals Professor Brown November 8, 2011 About PETCO PETCO is one of the largest pet supply specialty retailers nationwide. They are known for offering a wide array of pet supplies and services including food, grooming products, toys and grooming. PETCO strives to provide these products and services at a competitive price while offering high quality customer service both on location and on the website. They believe that the business should operate on the ideal that pets come first and they strive to promote the well being of companion animals and foster the bond between humans and their pets (Ferrell, Fraedrich, & Ferrell, 2011). This mission is the main focus of the nearly 22,000 people who work for PETCO in their 950 nationwide locations. Although PETCO is one of the largest pet supply operations they still have serious competition. There are many retailers who offer pet supplies at a lower cost to the customer and this is a real risk to the operation of PETCO. They are in direct competition with Petsmart, Walmart, Target, and even local grocery stores for consumer business. For that reason PETCO finds it extremely important to focus on their mission and strives to stand out in the crowd. In a steadily growing market segment where people generally spend 41.5 billion dollars each year, PETCO must stay ahead of the competition or they are bound to......

Words: 1042 - Pages: 5

Premium Essay

Enron: Questionable Accounting Leads to Collapse

...and the contributing factors that led to the financial downfall of a great company. The roles of the corporate culture, Enron’s financial staff, and even the chief financial officer are all to blame for the events that lead to the finality of the company that resulted in bankruptcy. While Enron boasted about being “The World’s Leading Company”, it was anything but that. The corporate culture of a company is supposed to describe how the stakeholders and employees, think, feel, and act. If Enron’s financial record is example of that, then the company should change the banner that hangs in the lobby at headquarters. CEO Skilling instituted a “rank and yank” system that would weed out lower ranked employees every six months. . (L. Ferrell, O.C. Ferrell, & Fraedrich, 2011). This alone caused a competitive environment amongst the employees. While he hoped this would help people reach their full potential, it ended up being a breeding ground for unethical practices within the company walls. Rather than a culture that focused on integrity and increasing profits for stakeholders, Enron was soon overcome with arrogance and the executives’ needs to fill their own pockets. Ignoring the rules was quickly integrated for the pursuit of profits and happiness, or so they thought. Enron’s bankers, auditors and attorneys eventually helped to lead to company to a financial demise with their collective decisions regarding inflated profits. Improper accounting practices reported $3......

Words: 701 - Pages: 3

Premium Essay

Business Management Excerise

...There are several keys in having a successful organization in the society today. First, by following the appropriate business ethics can make an organization successful. Next key is having a business plan. By having a business plan an organization can operate a business successful. Third key is in having a successful organization is being knowledgeable of supply and demand in an organizational performance to be able to provide to consumers in the short and long run. Last key is by sustaining a competitive advantage over competitors to make the business a success. A business plan is great value to an organization because a business plan includes every area of the organization such as the mission statement, marketing plan, operations and financial projections. By providing a mission statement consumers will have an idea of what the organization has to offer and how the organization views the customer. The mission statement is important in the business plan because this states what the organization’s purpose, goals and the customer service. The marketing plan plays a great role in the business plan. This strategy gives information about the target market, demographic area, location, product and service the organization is selling to the customers. The financial projections report provides information regarding funding the of organization ability to start a new business. The operations and human resources provides information about the staff of organization, polices and......

Words: 887 - Pages: 4

Free Essay

Mattel and Its Challenges

...The Problem: The problem surrounding Mattel Inc., one of the world’s largest toy companies, is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends” (Ferrell, et. all 466). This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards. Issues Relevant to the Problem: Mattel’s problem of mismanagement can be divided into several issues that need to be considered: legal issues, international supply chain issues, and an increase in technology-based toys. In regards to legal issues, Mattel has been involved in prolonged litigation with Carter Bryant and MGA over a breach of an employment contract and copyright infringement. Due to Mattel’s poor management of its overseas manufacturers, in which unauthorized subcontractors and third-party suppliers were hired and unsafe materials used, several toy products were recalled. Advances in technology and changes in socioeconomic and demographic trends have created marketing, privacy, and product development......

Words: 3368 - Pages: 14

Premium Essay

Partnerships and Domestic Corporation

...other partners. According to the National Center for State Courts, there were a whopping 14,957,085 civil suits filed in 2001 and that number is increasing every year. The shocking statistic is more than $200 billion dollars a year are poured into fending off litigation [ (National Center for State Courts) ]. Partnerships are used to minimize the disadvantages of a sole proprietorship and maximize the advantages of having more than one owner. Most states have a model law governing partnerships based on the uniform partnership act [ (Ferrell, Hirt, & Ferrell, 2009) ]. Partnerships are typically larger than sole proprietorships but smaller than corporations. There are two basic type of partnership: general partnership and limited partnership. General partnership involves a complete sharing in the management of a business. General partnerships each partner has unlimited liability for the debts of the business [ (Ferrell, Hirt, & Ferrell, 2009) ]. Limited...

Words: 983 - Pages: 4

Premium Essay

Market Strategy

...(Griffin & Ebert, 2013, p 275) A product can either be a good (tangible) or a service (intangible), an idea or some a combination (Ferrell, Hirt, Ferrell, 2014, p. 353-354). A product needs to satisfy a need/want of people, in order to make them exchange their money for it and become customers. Of course there are mostly more than one product available to satisfy customer’s needs. So it’s vital to distinguish the product from its competitors, e.g. by product differentiation. Pricing focuses on finding the profitable middle between covering all product costs (production, marketing, advertising, etc.) and competitive pricing. Place means how the product is going to be distributed from the producer to the consumers. Thus, decisions about where to sell (e.g. retail store, online) and distribution channels (direct or indirect) have to be made. (Griffin & Ebert, 2013, p 276) Promotion finally is a form of communication between a company and (potential) customers. The goal of promotion is to increase sales by influencing individuals or groups, etc. to accept a product (Ferrell, Hirt, Ferrell, 2014, p. 354-355). Promotion can also be used “to influence opinions and attitudes toward an organization, person, or cause”. Promotion is not just a single thing, it’s a mix consisting of advertising, publicity, sales promotion and personal selling. (Ferrell, Hirt, Ferrell, 2014, p. 390) In my opinion the product is slightly more valuable than the other elements of the marketing mix, because......

Words: 616 - Pages: 3