|Corporate Ethics: Right Makes Might|
|Topic||Ethics and Social Responsibility|
|Key Words||ethics, integrity|
|InfoTrac Reference|| A84666562
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The Enron collapse demonstrated the importance of having a corporate conscience and ethical climate. Not doing so will affect your business's bottom line and shareholder value.
Enron's Jeffrey Skilling and Kenneth Lay claimed they didn't know the details of the off-the-books partnerships that were used to hide debt. Enron had a code of ethics, but the people at the top set expectations that fueled unethical behavior.
A 2000 survey by the Ethics Resource Center found that 43% of respondents believed their supervisors don't set good examples of integrity. Other studies have shown that employees who perceive their companies to have a conscience possess a higher level of job satisfaction and feel more valued as workers. Also, they have found a strong connection between employee's perception of their leaders and their own ethical behavior.
There are many ways to encourage ethical behavior in a company. Some companies promote their ethical work environment as a plus when recruiting. Johnson & Johnson employees periodically survey and evaluate how well the company is adhering to its code of ethics. Including business ethics as part of employee performance reviews sends a clear message.
|Source||Heesun Wee, "Corporate Ethics: Right Makes Might," Business Week Online, April 11, 2002.|
|Instructor Discussion Notes|| Discussion Notes
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