1. Introduction Business Ethics is made up of a wide range of ethical principles or morals that arise in the business setting. In order to ethically govern the business, a lot of decision making has to take place. These ethical decisions will need to be made to put the companies’ principles into motion. There needs to be a background of ethics in order for ethical decisions to be made.
This helps the members of organization to better understand the behavior that is expected of them and act accordingly. A clearly written code is also important as it defines the overall ethical behavior of the organization. There are four reasons for having a proper code of ethics identified by scholars First is that a clear understanding of what actions can be performed under what situation will enhance the firm’s reputation by standardizing the acts Secondly better and effective practices will emerge as all members will follow the written code rather than taking random decisions Thirdly a written code will gather the employees around corporate culture by eliminating and discrediting the unwanted practices And lastly a clear set of ethical actions will positively effect all stake holder as it will be easier to understand the actions of members for all stakeholder and expectations will also be set
The Supervisor’s trust given to Turner was a fatal flaw in the internal controls set in place to prevent this from happening. Not periodically changing passwords, and rotating task between particular employees was another issue. Proper auditing of documents was another and last issue involved with this fraud scheme. b) For those components of the business process that were performed incorrectly, fully explain what should be done to correct each process, a. Trust is a key component in business world, particularly because supervisor and management do not hire, nor keep in employment those that they do not trust.
Companies should make sure that employees read and understand the requirements of their organization 's code of conduct. Employees including CEO must sign a declaration that they understand the code and apply it in their decision making. Moreover, training employees how to apply the code in the decision making is very important.
These are very common tools in the business organizations. People do believe that these formal ethics statement is just as controversial as they are popular. They think that codes are very vague, codes may not be read and finally it’s become the final word on the ethics subject. But in reality workplaces, codes stand for describing an organization’s ethical stance for anyone and also outside of the organizations. And it also helps and guide newcomers to know what the organization’s standard and what type of ethical climates they are using.
For the sense of business according to Joseph (2013), ethics are constructed and decided by each business and underpins decision that an employee makes. When it comes to the business’ environment, a well-constructed ethics is a key for a considerate and responsible decision making in a business (Bennett, 2014). Business Ethics is very important inside the company, it will show the moral standards that a company or business have whether it is right or wrong and good or bad. Every etiquette that a business has, will reflect on what kind of company or business you are. Thus, every company or business must show the proper and right etiquettes it should have, so that the customers will have that kind of trust and a good feedback on your company.
Korn (2013) deliberated whether an “A” in ethics is valuable in the workplace based on the fact that numerous white-collar scandals have emerged in past years. Whilst this thesis argues that ethics are learned behavior and exposure to the course content in college is valuable to the workplace, employees do not have absolute control over the established moral and ethical values of the organization. Even as ethic classes and positive childhood upbringing create ethical awareness that shape the prepares the individual to be stellar citizens, maintaining the learned ethical standards is dependent on an individual own perspective of ethics. The pressure at accounting, sales and consulting creates many ethical issues as employees engage in creative bookkeeping to reach their goals (hbr.org). Case in point, the recent uncovered unethical sales practice which became a part of the Wells Fargo culture and which resulted in the company compensating customer billions, installing new leadership and the withholding of executive compensations (Egan 2017).
A system to check and balances the benefit of all the board of directors and to avoid some of top management from making decisions that only benefit themselves is created and named corporate governance. Corporate governance means the system of rules, practices and processes by which a company is directed and controlled. The set of rules provided as a guidelines for the board of directors to make sure that accountability and fairness in a company’s relationship with its stakeholders such as financiers, customers, management, employees, shareholders and also society in order to achieve company’s goals and targets in a manner that add a value to the company. All of the stakeholders play an important role in corporate governance to ensure that
Code of ethics Code of ethics says or states the principal and expectations governing the behavior of individuals and organizations in the conduct of internal audit. Code of ethics is started by setting out the values that underline the code and will specify the company’s obligation to its stakeholders and employees and other people connected to the company .The code is publicly made available and addressed to anyone with an interest in the company’s activity and the way it does business. It will specify details of how the company plans to implement its value and vision as well as guidance to staff on ethical standard and how to achieve them. Ethical code are mostly adopted by management not to promote a particular moral theory ,but rather
The role of ethics, values, and integrity in accounting has been pushed aside to focus on the technical basics. Business schools seem to be involuntarily overstressing on technical accounting knowledge. Although many still doubt the validity of teaching ethics in classrooms, we believe that the approach of including ethical education in higher accounting classes is enviable. Yet, the subject here is not only whether the level of ethics among students should be raised, but also how to teach these courses. Offering business ethics as a stand-alone course or integrating it across the curriculum has initiated much discussion.