Consultants, managers, and executives in the business world were asked to respond to a question about whether business ethics was an asset (or liability) in today’s economy. Their responses were grouped into four categories - you'll be surprised by what we found.  FOR IMMEDIATE RELEASE
Concern about business ethics has been grabbing headlines since noted hedge fund manager, Bernard Madoff, admitted fraudulently to managing an investment company. Investors experienced an egregious violation of trust between themselves and Madoff.
Forty consultants/managers/executives in the business world were asked to respond to a question about whether business ethics was an asset (or liability) in today’s economy. Their responses (with frequency) were grouped into four categories.
Ethical behavior descriptors:
1) An asset (3)
2) Essential (2)
3) More important than making profit (2)
4) Vital for future; Core value; Honesty and integrity; Golden rule; A corporate social responsibility; A human value; A guiding principle; Trust; Being vigilant (not being lazy); Being treated with respect; Complying with social norms; What we do when we think no one is looking; Preferring to do the right thing; Absolutely important (all had one response each).
Consequences of ethical behavior:
1) Organization will win in the long run (9)
2) Can become a comparative advantage (2)
3) Is a competitive disadvantage (2)
4) Staff/client/vendor loyalty; Keeps organization from facing legal trouble; Outlasting (unethical) competitors; Strategic advantage; Good reputation (all had one response each).
Consequences of unethical behavior:
1) What “goes around comes around”(3)
2) People growing tired and dissatisfied; Situational ethics; Moral relativism; Besmirch those who associate with the organization (guilt by association); Being arrested or suffer heavy fines; Loss of money and job; Become self-centered/egocentric; Eventual failure (all had one response each).
Miscellaneous:
1) Ethics need to be taught in organization/school (2)
2) Don’t confuse ethical management with defensive management; Is more than a written document—should result in proper behavior; Depends on cultural context (all had one response each).
A brief review of the huge number of popular books and periodicals that were referenced on the Internet (e.g., www.business-ethics.org, www.ethics.org, www.ita.doc.gov/goodgovernance/, www.edwardlowe.org) revealed some additional insights. Beneficial consequences for ethical organizations (beyond those mentioned above) include:
∙ Superior employee performance
∙ Enhanced reputations
∙ International respect
∙ Legal and financial incentives
∙ Expanded access to capital, credit, and foreign investment.
A different focus on business ethics illustrated appropriate ethical behaviors:
∙ Treat your employees well
∙ Be honest in all business dealings
∙ Be socially responsible
∙ Back up your products and services.
When embarking upon training of business ethics, the most effective method was the use of case studies. This method resulted in greater confidence regarding one’s ability to make ethical decisions, increased reporting of unethical behavior, and less perceived pressure to violate ethical standards.
It is noted that there is a large volume of literature regarding business ethics with much conceptual overlap among the various sources. One variant involves the associated area of “whistleblowing.” How an organization handles the “whistleblower,” who as an insider discovers wrongdoing, is an acid test for how ethical standards are enforced.
by Roger Alford, Ph.D., Sr Research Advisor
For more information please contact us at +1 888.ZPRYME.1 or email us at infozpryme.com; subject line: Business Ethics
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