Kickbacks of any form is immoral, unethical, criminal and is a form of bad corporate governance. Such behavior by an organisation breeds immorality and, once again the factor of transparency is misused as stakeholders were not aware of the illegal actions taking place. Due to the immoral acts of bad corporate governance, uncertainty of the businesses independence, integrity, fairness and discipline to stakeholders is weary and therefore this can lead to a bad image of the business which in the long term can affect the business. Poor governance is a business risk and must be rooted out of an
The person responsible for the fraud was the CEO, Hank Greenberg. It was not exactly known how SEC found out, but possibly a whistleblower hinted it to SEC. The CEO was fired and AIG had to pay $10 million to SEC in the year 2003 and $1.64 billion in the year 2006. 8 # Scandal of Lehman Brothers It happened in the year 2008. It was another most cited scandal in the history of accounting frauds.
Although the actions of Dr. Brodus and Miss Evers prove to be unethical, I also find the actions to be unprofessional. Miss Evers should have informed the men of the severity of the disease, as well as how the disease is passed from one individual to another. They failed to inform their patients of many of the risks that came along with the disease. The focus of study
Ethics are the principles and values an individual uses to govern his or her activities and decisions. In an organization, a code of ethics is a set of principles that guide the organization’s programs, policies, and decisions. The ethical codes an organization uses to conduct business can affect the reputation, productivity of employees, and the culture around the company. Consumers and employees also like to work for and support organizations that are in line with their own code of ethics. There are two different way to approach ethics.
First of all, I think the final collapse of Enron on December 2, 2001, under Lay and Skilling was because of their leadership style and corporate administration issue that prompt to the corporate culture of the organization. The failure of the company was not only caused by one person’s doing but whole top management from the beginning. As the Chinese saying goes, “paper cannot hold a fire.” Hence, the mistakes they made accumulated day by day and finally end up with huge debts and bankruptcy. The things which had Lay and Skilling did is difficult to show both of them were violating laws. In fact, it is both of them that formed the corporate culture and bring in their own beliefs and instill into the company.
ETHICS DEFINATION: “The branch of axiology or knowledge that deals with the standards, moral values and acts of right or wrong is known as ethics.” BUSINESS ETHICS: “The branch of ethics which deals with the moral values of any business is known as business ethics.” • In business ethics, there is a sense of responsibility which lies between the suppliers and the customers. • In business ethics, we learn how to run an organization with the basic requirements and teachings of ethics. • To run an organization a person must know how to respect others and how to take care of emotions of others. VALUES OF ETHICS: Ethics is basically related to our inner and outer personality. What basically are we from inside that shows how good we are.
It emphasizes the recognition of the ethical dimension in the organization and its environment. As such, they propose that there is a need for this ethical dimension to be managed alongside and integrated with other areas of management, such as, time management, human resource management, financial management and organizational design. According to the Public Service Commission, this organizational ethics management involves: • Awareness of the ethical of an organization and the context, with which it interacts, and which also impacts on the organization; • Behaviour or actions of individuals and groups, as well as the way organizational and social systems function; • Developing sensitivity to the fact that everyday business practice implies decisions and actions motivated by certain moral values; • Developing sensitivity to the obligation to be held for our moral values; • The ability to distinguish right from wrong by carefully taking the interests of all and everything involved into account; • The commitment to do what is right and to protest any action or decision that might lead to wrongdoing, or in itself is morally unacceptable; • Regular revisiting of standards of organizational ethics; • Regular accounting and auditing of and reporting on the management of ethics in the organization and the interaction with the social and natural
When it comes to ethics, we look to leaders to lead on ethics and take responsibility for both good and bad results. Leaders who lead ethically are role models, communicating the importance of ethical standards, holding their employees accountable to those standards, and- crucially- designing environments in which others work and live. But, what happens when these leaders begin to cross that fine line of what is ethical and what it is not? The follower must then step up and remind the leader of what is right. The follower must remind the leader of the very things that the leader has taught the follower about ethics.
By doing so, it sets a standard of ethical behaviour and has the potential to have a positive consequence for the reason behind employees motivation which can be defined as ‘The degree to which an individual wants and chooses to engage in certain specific behaviours’ (Mitchell, 1982). The social learning theory (Bandura, 1977) argues 'behaviour is learned from the environment through the process of observational learning '. Codes which are seen as being harnessed by those at the top of the hierarchy in an organisation can champion ethical behaviour as these senior figures are role models and set a standard as to how one should conduct his or herself ethically in an organisation. An ethics firm called LRN conducted a study which unravelled that 73 percent of employees who were part of an organization that had a written code of conduct believe ‘that it improves the organization as a workplace’ (LRN, 2006). Ultimately, employees will look to the code of conduct to form their motivation, values and beliefs in regard to