In today’s business world, organizations have an effect on many people especially in the working class of our society. They have an obligation to their employee, customers, society and the world to set a good sample of an ethical environment. It is their responsibility to conduct business in a way that is not harmful and which positively benefits as many people as possible and themselves. Although this sounds simple, and it is easier said than done, as there will always be a conflict of interest between various groups of people or organization. Any decision made by businesses need to be made with an educated awareness of the precise situation and then act according to some sort of system of principals which is ‘Business Ethics’.
What is Business Ethics?
Business ethics is exactly the same as normal ethics, and that knows what is right or wrong, and good and bad behavior. It is the study of what makes up good and bad conduct as related to business activities and values. (Kubasek, Brennan & Browne 2006) Ethics plays a very important role in one social system and basically on how the people will make their actions or decide on a particular thing on whether it is the right or the wrong thing. Ethical reflection is very important, it helps a person or a group of person understands whether the actions are right or wrong. Ethics is a very critical factor most especially when considering where the ethical standards are applied to. Aside from it, weigh results of events or decision is also another major concern because of the fact that a person has dangerously analyze whose side is needed to satisfied. There are instances that moral obligations are also measured, in which moral is defined as a universal accepted personal human behavior that allows a person to decide whether an action or decision is bad or good.
Power and Greed:
Within the past decades, there has been increasingly significant business scandals and ethical failures in the United States. Just to name a few, Savings and Loans (S&L) scandals in the 1980s and 1990s. Next came the crumple of the dot-com bubble, and then came the accounting scandals concerning Enron and WorldCom. Most recently, we have had the financial scandal and disaster of 2006-2009, whose effects have been the most damaging and significant worldwide. (Brenkert 2010) One unethical and damaging effect on investor’s retirement fund is the ‘Ponzi Scheme’ of Bernie Madoff. It is pure greed of people in power...