By blatantly lying on numerous occasions about the value of their stock, participants like CEO Kenneth Lay overstepped the boundaries of utilitarian lying.
Many studies have been conducted on the relationship between ethics and profitability in the business world. Studies indicate a "positive but not definitive" relationship between ethical behavior and financial success (Webley and More). Especially in the wake of the Enron disaster, investors and employees are looking toward companies with stronger ethical codes. Research has also indicated that companies that overtly refer to their codes of ethics in their annual reports and other public communications fare better than those that don't, in terms of economic added value (EVA), market added value (MVA), and reduced volatility (Webley and More).
Such research does not indicate a causal relationship between ethical behavior and profitability. What such research indicates is not necessarily that ethical companies are more successful because they did not lie. Rather the studies show that investors are more attracted to ethical companies: more investors means more profits. Similarly, consumers who are concerned about ethics will choose to patronize businesses they feel good about, businesses that are at least in word committed to ethical practices. Profitability follows...
Business Ethics Introduction (Summarize the overall viewpoint of the author, and discuss the major issues presented in the case.) In the case, the author is showing how Dennis Kozlowski and Mark Schwartz were at the top of an elaborate scheme to defraud Tyco. This was accomplished by talking about how their troubles began based upon Kozlowski's desire to avoid paying taxes on artwork in New York State. As the investigation expanded, the
Utilitarian Ethics Business Ethics 3825 Case of the Sole Remaining Supplier Relevant stakeholders Internal stakeholders External stakeholders Utilitarian ethics: Action plan Desired aims Specific Actions Raising the quality control standards Develop elaborate Standard installation and operation procedures (SIOP) Right of revoking supply contract unilaterally in case of non-compliance to SIOP Optimal good achieved Case of the Sole Remaining Supplier The case of 'sole remaining supplier' is regarding a firm that manufactures heart pacemakers. The pacemaker is a modern device that is used by the
In addition, the researchers found that on three of the four dimensions, the salespeople were ethical in their conduct, including the use of moral reasoning in the service of both prospects and customers. The only dimension to not test statistically significant was the information dimension, as many of the sales people in the study did not routinely file reports with their managers. This is fascinating analysis as it has been pointed out in many of
British American Tobacco Company: Business Ethics The British American Tobacco company is a multinational company with over 200 brands that they have developed under the guidance; the company is staggeringly successful, selling 694 billion cigarettes in 2012 (bat.com). The worldwide company sees itself, and many would argue, rightfully so, as a powerful forces that has stimulated economies all over the globe in lasting and measurable ways: in 2012, the company's
Aviation Business Ethics and Sept. 11 Industry Implications On September 11, 2001, nineteen terrorists passed through several security checkpoints at three United States airports and proceeded to hijack four commercial jets. The horror began at 8:45 A.M. Two hours later, more than three thousand people were killed in New York City, rural Pennsylvania and Arlington, Virginia (Duffy, 2002). shattered the nation's sense of safety and security and forever changed the way people
Business Society and Corporate Values There has indeed been a great deal of discussion regarding CEO compensation, which is rightly viewed as being completely out of line. The core problem and cause of inflated CEO salaries cannot be attributed to a single reason, but is rather the result of a range of inter-connected factors. What is definitive is the fact that these salaries have inflated over time; this is in part
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