Business Ethics

I found this very interesting piece of information as I began reading a text b0ok on "Financial Accounting" by Warren.

As I read through this section, I realized that "Ethics", no matter what role you are playing, whether at work, or at home or in the society, defines an individual. It directly ties to the Character of a person.

On this note... read on and Enjoy!

Individuals may have different views on what is "right" and "wrong". For example, you may believe it is wrong to copy another student's homework and hand it in as your own. Other students may feel that it is acceptable to copy homework if the instructor has no stated rule against it. Unfortunately, business managers sometimes find themselves in situations where they feel the pressure to violate personal ethics. For example, managers of Sears automotive service departments were accused of recommending unnecessary repairs and overcharging customers for actual repairs in order to meet company goals and earn bonuses.

The moral principles that guide the conduct of individuals are called ethics. Regardless of differences among individuals, proper ethical conduct implies a behavior that considers the impact of one's actions on society and others. In other words, proper ethical conduct implies that you not only consider what's in your best interest, but also what's in the best interest of others.

Ethical conduct is good business. For example, an automobile manufacturer that fails to correct a safety defect to save costs may later lose sales due to lack of customer confidence. Likewise, a business that pollutes the environment may find itself that target of lawsuits and customer boycotts.

Business people should work within an ethical framework. Although an ethical framework is based on individual experiences and training, there are a number of sound principles that form the foundation for ethical behavior.

1. Avoid small ethical lapses. Small ethical lapses may appear harmless in and of themselves. Unfortunately, such lapses can compromise your work. Small ethical lapses can build up and lead to larger consequences later.

2. Focus on your long-term reputation. One characteristic of an ethical dilemma is that it places you under severe short-term pressure. The ethical dilemma is created by the stated or unstated threat that failure to "go along" may result in undesirable consequences. You should respond to ethical dilemmas by minimizing the short-term pressures and focusing on long-term reputation instead. Your reputation is very valuable. You will lose your effectiveness if your reputation becomes tarnished.

3. Expect to suffer adverse personal consequences for holding to an ethical position. In some unethical organizations, managers have endured career setbacks for not budging from their ethical positions. Some managers have resigned because they were unable to support management in what they perceived as unethical behavior. Thus, in short term, ethical behavior can sometimes adversely affect your career.

Being a woman engineer, working mostly with men, I find myself challenged by unethical behavior in men a lot. I small and very subtle ways. Not speaking up, implicitly gives them the message that I am non-resistant to this behavior of them. It has made me feel uncomfortable several times and reading this article has been an eye opener.

Having strong moral and ethical standards, and having a strong conviction to adhering to these standards are two very key and very basic aspects required for human existence in the society.
It is our responsibility to the community that we live in and it is our responsibility towards every individual that we co-exist with.