Ethical Issues in Business

In: Business and Management

Submitted By petegonzalez
Words 1003
Pages 5
This paper will discuss Ethical Issues in Business and the behavior of the business world. Rigorously, the question of Ethical behavior is raised in the private and federal sectors (more in the private sector when dealing with organizations, businesses, and corporations) and to the extent of the contain that involves this kind of behavior. Ethics is a strong topic that can be discussed in some great length without reaching any kind of consensus stateside or abroad. However I will give some insight on the issues of corporate ethic’s and federal behavior. The responsibilities and objectives of the businesses will be observed, as well as the ethical obligations of the federal sector.

One of the major issues that corporations have in the private sector is over reporting and under reporting of net income. Management in the corporate world seeks to show that every quarter the net income of business has grown. The way this is done is by adopting unethical means and illegal means in the operations of financial reporting. One such way this is done in the private sector is in the use of stock options for employees that enable private sector companies to take employment cost off balance sheet and inflate earning.

Corporation’s when making decisions must be held to ethical standard as well as a technical or commercial standard. Corporation’s board members must govern the Ethical behavior of its C-level, upper, middle, lower management, and especially its accountant’s. Unfortunately this has not been the case in most situations until the economic downfall that

started back in 2008. (The below statement is an example unethical corporate behavior.)

“The sudden collapse of Enron, followed by other scandal such as WorldCom and a growing list of companies that have inflated earnings figures, has shaken the trust in corporations and their management. Each…...

Similar Documents

Ethical and Moral Issues in Business

...Introduction The purpose of writing this paper is to describe the difference between ethical issues and moral issues. I will also explain the difference between personal ethics and business ethics. Then I will provide examples of common ethical problems in business for ethical issues, moral issues, personal ethics and business ethics. An ethical issue can be mirrored closely with a moral issue. According to Trevino and Nelson (2007), ethics can be defined as “a set of moral principles or values,” a definition that portrays ethics as highly personal and relative pg 13. Does that definition sound familiar? According to Merriam-Webster the definition of moral is “of or relating to principles of right and wrong in behavior: ethical”. An ethical issue has to be evaluated as a set of standards that most people deem as right or wrong however, a moral issue has more to do with the belief of an individual person of right or wrong. Ethical issues and moral issues are like walking a fine line therefore, making these issues differ is rather its personal or business. The term ethics can be described both in personal and business. Personal ethics is something that is a moral principle of a person’s belief. Ethics can be defined as “a set of moral principles or values,” a definition that portrays ethics as highly personal and relative (Trevino & Nelson, p. 13, 2007). This is based upon the personal ideals of what’s right or wrong. The choices that we make and the consequences behind......

Words: 595 - Pages: 3

Ethical Issues in Business

...Ethical Issues In Business In defining the meaning of business ethics both words need to be examined. Understanding ethics can be regarded as the morals and values a person was taught or experienced in growing up. Ethics can be thought of as a code of conduct that is used in relationships and interactions with others. It is abiding by laws and principles that has set a standard by our society. It seems to be a personal decision that is very much depended on an individual’s thoughts for what they feel is right or just. Even with knowing what the right thing to do is, it may not be the best thing for the situation or a person may not feel that it is the best. It may very well be the hardest thing to do, but still the right thing to do and quite often people decide to do what’s easiest. The norms of our society can also be a deciding factor to ethical decisions especially when clear boundaries are not established. Business ethics are what define a company to its customers, its employees, to the vendors doing business with them, to the community agencies and in all business relationships. Even though basic laws, guidelines, and rules are established to operate a business with those confines, the ethical code that is enforced is what makes the business successful. If the company values are viewed as fair and just with a willingness to provide its services and products in a manner that is considerate of all its business associates, then trust and confidence is quickly......

Words: 769 - Pages: 4

Legal and Ethical Issues in Business

...more and more diverse. This paper is discussing the legal and ethical issues which surround this topic, as well as, develop an analysis for the ethical concerns raised by the laundering of money. The writer will then provide explanations from at least three relevant areas of law that have been discussed throughout the course and assess each area as it applies to money laundering. Finally, the write will provide recommendations on this situation to reduce liability exposure and improve the ethical climate or the overall ethics of money laundering. Is money laundering a real problem in the world today? I. Introductions There are many ethical issues that can arise in the course of operating a small business. A comprehensive understanding of the different types of ethical issues will help you to identify and handle this situation’s responsibility to maintain core business values. Let’s look at this scenario for example, money laundering. This paper is discussing the legal and ethical issues which surround this topic, as well as, develop an analysis for the ethical concerns raised by the laundering of money. The writer will then provide explanations from at least three relevant areas of law that have been discussed throughout the course and assess each area as it applies to money laundering. Finally, the write will provide recommendations on this situation to reduce liability exposure and improve the ethical climate or the overall ethics of money laundering. ......

Words: 2964 - Pages: 12

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business MGT-216 10-23-2010 Ethical and Moral Issues in Business Businesses and individuals face ethical dilemmas on a daily basis. We all have to have some level of concern for the decisions that we make in life because our decisions affect others in many ways. Businesses definitely have to care about ethics because their employees depend on them to help define the boundaries of acceptable and unacceptable behavior (Managing Business Ethics, 2007). Individuals face moral issues as well as ethical issues. People are motivated by economic and moral concerns. We, as individuals, have to care enough about each other to make ethical and moral decisions throughout our lives. Most times, the decisions that individuals make will affect others in one way or another, so it would be wise to think things through before making any unethical or immoral choices. Some individuals believe that there is no huge difference between morals and ethics, but there is. Morals define personal character, while ethics stress a social system in which those morals are applied. This means, ethics point to standards or codes of behavior expected by the group to which the individual belongs (www.wisegeek.com, 2010). An example of an ethics would be if the CFO of an organization allowed the accounting clerk to record payments received from clients, write checks and perform bank reconciliations every month. In the accounting world, this would be deemed unethical......

Words: 825 - Pages: 4

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business Dawn Sandell Robbins MGT/216 February 14, 2011 Carolyn Flynn Ethical and Moral Issues in Business The words ethical and moral are often considered as being one in the same. Although the meaning may be closely related in some aspects, the two have different meanings. While something may be ethical or legal, it may conflict with one’s personal beliefs and morals. It’s hard to imagine that one might not know right from wrong. Honestly, think about it. Are we not molded and nurtured to know what is socially acceptable? Were we not brought up knowing that it is wrong to lie, cheat, and steal? In this paper, I will define the differences between ethical issues and moral issues as well as the difference between personal ethics and business ethics. Ethics can be defined as the principles, norms, and standards of conduct that govern an individual or group in which focus is on conduct (Trevino, Nelson 2007). Ethics is considered to be a science of conduct by many philosophers and is the ground rules by which we live our lives. The rules, code of conduct, policy or handbook is typically a written form of the ethics in which a business expects its employees to follow and behave. Generally these rules are what most would consider normal rights and wrongs, dos and don’ts. An ethical issue might be a situation that concerns right and wrong where values are in conflict (Trevino, Nelson 2007). As mentioned in the opening of this...

Words: 755 - Pages: 4

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business Steven Colon MGT/216 August 16, 2011 Mike Moreno Abstract In the following paper one will know about what an ethical issue is and a moral issue is, and examples of an ethical and moral issue. One will also learn about personal ethics and business ethics and how they are similar, but different. Ethical and Moral Issues in Business People have always questioned whether ethical issues and moral issues are the same, or if personal ethics, and business ethics are different. In this paper one will be able to see the differences between ethical and moral issues, the differences between personal ethics and business ethics while reading about real-world examples of common ethical problems in businesses for each of the above. Ethical Issues Many people believe that ethical issues and moral issues are the same thing, but in reality they are not. “our definition of ethics—the principles, norms, and standards of conduct governing an individual or group—focuses on conduct” (Trevino, & Nelson, (2007), p. 13). An ethical issue will require an individual or organization to make a decision between alternatives that must be weighed as an ethical or unethical decision. An unethical situation would be someone sacrificing people’s safety to obtain the completion of an assigned objective. Moral Issues “When we speak of morality, we refer to our judgments of right and wrong, and good and bad” (DeGeorge, (2010), p. 24). ......

Words: 644 - Pages: 3

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business Barbara Douglass MGT/216 February 5, 2011 Brigitte Culberson-Austin Ethical and Moral Issues in Business Ethical and moral issues have been an issue since the dawn of civilization. It has never been more important than how business deals with these issues. Ethics and moral behavior is essential to any successful business and its environment. Morals and ethics are two separate entities, but depend on each other for successful decision making. Sometimes the line between morals and ethics can become blurred and making the right decision can be difficult and not as clear-cut as one would think. Understanding the differences between ethics and morals and moral and ethical behavior is relevant to decision making. Differences between Ethics and Morals Understanding the differences between ethics and morals may be difficult for some. At times they can be confused for one another. Morals values are standards of right and wrong. Morals are taught over our years of growing up. These could consist of right and wrong behavior when we are children or right and wrong sexual issues as teens and young adults. These are generally instilled on us by our parents or our religious beliefs. Ethics is applying our moral standards to our environment. Our decision to do something that we consider immoral may not be unethical and our decision to do something unethical is not necessarily immoral. Personal Ethics versus Business......

Words: 624 - Pages: 3

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business Teresa Wright Mgmt 216 Kenna Fowler 25 September 2010 Business is complicated by Moral and ethical issues which are hard to resolve but easy to see, the reason is everyone has their own set of morals and ethics, what maybe morally wrong for one could be just the cost of doing business to another, after all it is a dog eat dog world. Therefore, decisions made by personnel can cause complications for business’, Code of ethics and company mission statements provide guidance to employees and employers on expectations. Merriam - Webster Dictionary defines Moral of or relating to principles of right and wrong in behavior, expressing or teaching a concept of right behavior, conforming to a standard of right behavior, sanctioned by or operative on one’s conscience or ethical judgment, capable of right and wrong action. I would define Moral as values placed on behavior and decision whether right or wrong. Ethics refers to well founded standards of right and wrong, reasonable obligations to refrain from committing crimes either minor or larger, which include honesty, compassion, and loyalty, also can be referred to as standards relating to rights. 2 Personal ethics is the moral foundation a person builds there life, ethics may assist with decision making, guide us to participate in actions that meet our personal internal moral standards. Ethics are the core value system for each and used to solve problems, determine what is right......

Words: 596 - Pages: 3

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business University of Phoenix Organizational Ethics and Social Responsibility MGT/216 Ethical and Moral Issues in Business Organizations promoting ethical operations while allowing employees to retain their moral compass will proactively solve issues and maintain successful operations even in times of turmoil. Individual or company values motivate effort and influence performance. Employee motivation directly relates to the encouragement a company exhibits while enforcing an ethical code of conduct to benefit and protect both the employee and the business. This essay comprises of the difference between moral and ethical issues pertaining to personal and business principles, as well as identifying common ethical problems that can impede organizational success. Morals can be referred to as an individual’s values and beliefs guiding one’s conscience to distinguish between right and wrong. Morals reflect a personal relationship with the individual influenced by family, friends, life experience, and etcetera. Change is difficult without a transformation in an individual’s personal belief system. Morality is based on “conforming to wide social beliefs” unspoken but “understood by most members of a society, including those who choose to act against the common morality” (Taylor, 2011, para. 4). Moral issues focus on social customs and opinions influenced by an individual’s belief system. An example is the moral objection to adult......

Words: 928 - Pages: 4

Moral and Ethical Issues in Business

...Ethical and Moral Issues in Business Michelle Ayuso Wienke MGT 216 August 8, 2011 Ethical and Moral Issues in Business In business today ethical and moral issues are very common. These types of issues are frowned upon and in some cases have extreme consequences but, they are still happening in businesses everywhere. Morals and moral issues can be difficult. Everyone has different morals and values that influence the decisions they make. Ethics are a set of rules and guidelines that are generally accepted and are supposed to be followed by everyone in an organization. Morals and ethics go hand-in-hand for the most part but, there are differences between the two, especially in a business setting. Ethics are more of what the public views as right and wrong. Morals on the other hand are more on the personal level of what is right and wrong. No matter what the setting ethics and morals are connected. When a code of ethics is written for an organization morals play a part in the process. In most cases a code of ethics in what is generally accepted. Ethics are different from one company to another but, there are many similarities. This would not be the case for morals. Since morals are more personal, everyone has a different perspective on what is moral and what is not. Ethics and morals influence decisions people make both in business and personal settings. A good example for showing the difference between morals and ethics in a business situation would with a defense......

Words: 767 - Pages: 4

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business University of Phoenix Ethical Issues and Moral Issues An ethical or moral issue are taken to mean the same thing to several people. Both words are connected to each other terms as good and bad, right and wrong. Example of right or wrong, ethical or moral is abortion the way to kill a child, it depends on who you ask about this situation. Some believe that abortion is an ethical moral if the woman was rape or it is not moral act due to not being marry according to the Bible teaches. When there are two or more undeniably different is a matter of a dispute which is ethical or moral in society. People in general think to resolve an ethical issues means to yell, hitting, and using explosive language that can be effective at times. There are three components to ethical, such as non-moral facts, concepts and moral or ethical aspects, which to resolve the ethical issue all three components should be considered. Personal Ethics and Business Ethics Society looks at business ethic in how they manage and operate the organization. According to Trevino and Nelson (2007), ethics definition are the principle, norms, and standards of conduct governing an individual or group (p13). The ethics for business is the moral principles of the company guidelines. The personal and business ethics both expect employee’s or individual to know right and wrong, good and bad. The professional ethics in business is a moral problem or ethical principles......

Words: 583 - Pages: 3

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business Robert Morrison Mgt/216 January 23, 2011 Gail Kelson Ethical and Moral Issues in Business Some people believe that ethical and moral issues are alike, but in all reality they vary in context as well as determined by the situation. Ethical issues can form in companies, organizations, government entities, and in individuals. The difference between ethical and moral issues Ethical issues are problems or a situation, which requires a person or organization to choose between alternatives that must be evaluated as right or wrong. Most ethical issues are not limited to situations just within companies or organizations but can, and often do involve individuals. Morals have a concern with one’s goodness and badness of the human action and character of that person to which it may apply. Everyone develops morals from the time of birth through turning into a young adult. Morals come from achievements and failures and beliefs of family members, friends, coworkers, and anyone else affiliated in the individual’s life. A person’s morals can be......

Words: 658 - Pages: 3

Ethical and Moral Issues in Business

...Running Head: ETHICAL AND MORAL ISSUES IN BUSINESS Ethical and Moral Issues in Business MGT 261 University of Phoenix Ethical and Moral Issues in Business Business will always have ethical and moral issues to face. It is how the business solves or addresses the issues that will define a business’s level of morality and values. Businesses want to be known for their ethical traits for many good reasons. Revenues will be greater, improved brand recognition, greater employee motivation and retention, and better financial resources. These good reasons come with a price. Increased costs related to purchasing fair trade products, increased overhead related to training and communication, and a risk of building false expectations. Differences in ethical and moral issues The differences in ethical and moral issues are slim, because what is considered ethical is based from what is considered moral. Moral issues are based on beliefs, judgments, and feelings of an individual or group (Trevino, 2007). The set of moral principles or values are used to evaluate people and business’s actions, like a set of rules. The rules of human behavior assist in defining what is right and wrong. Ethics are defined as “the principles, norms, and standards of conduct governing an individual or group” (Trevino, 2007). Ethics are considered a set of moral principles or values extremely personal and relative to people or groups. In a business, the ethical......

Words: 625 - Pages: 3

Ethical and Moral Issue in Business

...Ethical and Moral Issues in Business MGT/216 Ethical and Moral Issues in Business The purpose of this paper is to explain the difference between ethical issues and moral issues. Ethics are standards of behavior, which depending on a person’s profession must be adhered to such as legal, medical, or the workplace. Ethics dictate what socially acceptable behavior within a social system is and sets the standards for what is right and wrong. Examples of ethical issues are discrimination, sexual harassment, and conflicts of interest. Morals refer to the understanding of what is right and wrong as well as what is just and fair and the actions taken. Morals define a person’s character and conform to social beliefs. Moral issues are one’s actions on those set standards. One may know that morally something is wrong but are considered to be ethical if one keeps their word or promise made. On the other hand one may morally feel so strongly on an issue that the ethical code of their profession is set aside and is violated. The difference between personal ethics and professional ethics are the actions one may take in response to different situations. Personal ethics are the set of ethics that an individual personally believes in and holds true. Professional ethics are rules, laws, or codes that professionally must be adhered to. Sometimes personal and professional ethics can conflict with each other forcing individuals to choose between what...

Words: 605 - Pages: 3

Ethical and Moral Issues in Business

...Ethical and Moral Issues in Business MGT/216 Dr. Linda Rose October 10, 2011 Business Ethics Perspective Ethical conclusions are made about actions or situations that are right or wrong, good or bad. One indication that an action or circumstance needs an ethical rather than simply a business judgment is that the action or situation involves real or potential harm to someone or some thing. Another indication would be that there seems to be a possibility of a violation of guidelines set forth by the company that would generally be considered right or good. This paper will discuss what business ethics is and explain three ethical issues within today’s business environment that impacts the community and an organization. I will differentiate between ethical issues and moral issues, as well as personal ethics and business ethics. Problems involving discrimination, harassment, and conflicts of interest are common occurrences of unethical practices in many organizations. These issues stem from our beliefs on what is ethical and moral; the difference between personal and business ethics. By definition ethics is a term that refers to the principles of right and wrong that individuals use to make choices to guide their behaviors (Rainer & Turban, 2008, p. 96). However, business ethics is not a separate ethics that restrict businesses in a way that other human and social activities are not controlled. Ethics......

Words: 761 - Pages: 4