MGT353 - Chapter 04

1 observations of unethical behavior at work 4 6 3

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Unformatted text preview: r at Work 4-6 3 2/16/2014 Five Key Reasons Business Should Be Ethical 1. To meet demands of business stakeholders About three-fourths of employees surveyed in 2007 believe their firms are considering the environment, employee well-being, and the interests of society and the community. Meeting demands of stakeholders is good business 2. To enhance business performance Research shows linkage between ethically responsible behavior and favorable corporate financial performance Imparts trust, promoting positive alliances among business partners 4-7 Five Key Reasons Business Should Be Ethical 3. To comply with legal requirements Two legal requirements provide direction for companies interested in being more ethical in their business operations U.S. Corporate Sentencing Guidelines Sarbanes-Oxley Act of 2002 Although they apply only to U.S.-based firms, these legal requirements also provide a model for firms that operate outside the United States 4-8 4 2/16/2014 U.S. Corporate Sentencing Guidelines Establish standards and procedures to reduce criminal conduct Assign high-level officer(s) responsibility for compliance Not assign discretionary authority to “risky” individuals Effectively communicate standards and procedures through training Take reasonable steps to ensure compliance—monitor and audit systems, maintain and publicize reporting systems Enforce standards and procedures through disciplinary mechanisms Following detection of offense, respond appropriately and prevent reoccurrence 4-9 Sarbanes-Oxley Act of 2002 Born from the ethics scandals at Enron, WorldCom, Tyco Seeks to ensure that firms maintain high ethical standards in how they conduct and monitor business operations Requires executives to vouch fo...
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This document was uploaded on 03/05/2014.

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