Importance Of Ethics In Corporate Governance

Cendant Corporation had the pressure to comply with their shareholders and to maintain a stable financial status to prove that they were a profitable organization with a bright company image. Another pressure presented in this case for Cendant Corporation was that for the top management once again. The top management needed to have their financial information seem profitable, therefore pressured the accountant of the company to falsify and “cook the books” to make the financial statements seem actually “profitable” when it wasn’t what It really was. As said in the previous question, income smoothing was used in this case by Cendant Corporation as an unethical practice to make the investors believe that their shares were all bright

If the corporation initially had prioritized ethical values and decision-making evaluations at every level of the business, this scandal could have been prevented at least its magnitude. Contracting ethical officers and on-going training would have educated employees on the proper decision making steps. This dilemma safeguarded that Wells Fargo will take a different approach with its management team, ensuring they are trustworthy and promoting the company values, as customer satisfaction and trust is the

Ethical principles are universal standards of right and wrong prescribing the kind of behavior an ethical company or person should and should not engage in. These principles provide a guide to making decisions but they also establish the criteria by which your decisions will be judged by others. In business, how people judge your character is critical to sustainable success because it is the basis of trust and credibility. Both of these essential assets can be destroyed by actions can be, or are perceived to be unethical. Thus, successful executives must be concerned with both their character and their reputation.

1. Introduction CORCON is a construction company that has lost its reputation mostly due to unethical management behavior, despite the fact that the company’s growth having being very good! Operating an industry that is known to be prone to corrupt practices and unethical behavior makes it easier for CORCON to fall prey to these practices. Management and employees may turn a blind eye to what is wrong and what is right, as pressure to meet targets no matter what is being imposed on them by the Chief Executive Officer. This is a clear indication that the tone on top in terms of good ethical behavior is absent in this company.

An area that ties into decision making in business ethics is whether that decision will be beneficial to all those who have a vested substantial interest in the outcome. Courage also plays a significant role here because individuals at times attribute success to doing everything on their own or being self-sufficient. Sometimes the lack of courage to ask for help or even a second opinion causes business people to make poor choices which in turn negatively affects those with an interest in the

If the leader is hiding certain information, the employees will not have full trust in the leaders because of poor honesty and transparency. Successful leaders need to explain reasons for decisions made, being truthful about compensation policy and business performance to the employees. As for ordinary managers, they provide control by nature of their role. Thus, they merely ensure that work gets done and are usually use more controlling approach. Ordinary managers monitor the work performed by the employees and often make comparison to the actual progress if it is following the plan.

Corporate Cultural Dissonance or Not Dissonance is a condition where what is happening is not in agreement with what is thought to be in a given environment. Commonly referred to as cognitive dissonance; when applied to the behavior witnessed in corporations, it is known as cultural dissonance. At first glance, the fictitious company Finer Bags appears to be suffering from an ethical misalignment. However, an examination of their statements and actions would reveal the two are congruent within the organization. Given the material provided regarding the company, I will present the case that the actions of FinerBags.com is in alignment with their business ethics.

Egoism impacts Verizon’s ethical business decision making because there could be those decision makers that make their decision based solely on how it will benefit themselves. This could be a severe problem for a company because someone’s greed could affect all the stakeholders of Verizon. Unfortunately, there are may self-centered individuals who only care about themselves and how much they can benefit from a decision, regardless of how it will affect others. Some examples of this could be someone who takes part in insider trading and someone who take part in collusion where they solely receive financial

Shareholders: When operating ethically shareholders would like to maximise their return on investment. They would likewise need to guarantee that supervisors are behaving ethically and not risking investors’ capital by engaging in actions that could hurt the company’s reputation. Shareholder’s may not be happier as the return on investments would be lower when a business attends to operate ethically but it is possible to persuade them by clarifying the long haul results of the business. Customers: They are the most critical stakeholder for a business. Customers would need new better quality items at sensible prices.

However, if management are saying that they value teamwork but seem to reward individuals, then this can result in a drop in commitment, widespread resentment and perceptions of inequity (Rowland, 2013). Bacon & Blyton (2007) examined workers views of why teamwork was being utilised by management. They study aimed to gain an understanding of the impact of team working on the attitudes and behaviours of employees. It found that workers were generally supportive of the idea of teamwork but distrustful of managerial intent. It was mentioned that employees’ believed senior managers introduced team-working in order to meet the concerns of shareholders and it would be used adversely in a time of job cuts.