How to be Ethical and Still Prosper

History of Business Ethics

Early Judaism introduced the 10 commandments to Moses' hand, which are still used as a guide for morality for many today. The 10 commandments providing practical principles for the veracity and good ethical behavior. For example, Exodus 20:16 says: "You shall not bear false witness against thy neighbor." This verse gives a great value for honesty in all aspects of business and life. Many of the ideas which are in the Bible can be and have been used in activities for a long period of time. Other religions also have similar or ancient sacred texts that help to orient people's actions.

Philosophers also played a role in identifying and influencing the morality and ethics in society. Plato was known for his discussion of justice in his work The Republic:

If what I am morally obliged to do can (sometimes) be different from what I chose to do for my own benefit, then why should I be moral? Plato wrote the rest of the Republic, in an attempt to provide an adequate answer to this question satisfactorily.

Aristotle discussed the economic relations, trade and commerce under the title of the family in its policy. He discussed trade, property, and all the money they apply to modern times. He made moral statements about greed and perverse use of their abilities in the pursuit of wealth for its own sake. Attacks exploiting because it includes a profit from the money itself but the method of exchange in which money is merely a means.

After the fall of Rome, Christianity influenced activities in the context of justice and fairness in the sale. Later, Luther, Calvin, and John Wesley, among other figures of the Reformation paved the way for the development of the Protestant work ethic. The Protestant work ethic is an idea based on the Bible, the importance of hard work, striving for perfection and quality of the work.

John Locke developed ideas regarding the defense of property as a natural right. He believed that people acquire property by mixing their labor with that found in nature. Adam Smith, often called the father of modern economics, believed that morality and economics are intertwined and not mutually exclusive. The increased attention to its economic influence, but Smith was also a moral philosopher and author of The Theory of Moral Sentiments.

Why do people behave unethically: a case study of Enron

Within six months, how could one of the most respected and successful U.S. fail? Board of Directors of Enron has authorized their chief financial officer of Enron financed by creating partnerships that defrauded shareholders by hiding the real losses and creating phony profits. One of the most critical of Enron's board meetings in 1991, where leaders have given their approval to put aside their ethics statements on behalf of fraudulent activity with the partnership, which lasted only an hour.

Pressures from management often cause employees to consider and use immoral means to achieve success to please their superiors. Enron recruited only at major business schools. They drank wine and ate prospects. Recruiters young unemployed promised huge bonuses and fed their egos as they would take. Once they were hired, was an up or out culture. Those who survived began to think they were something extraordinary. Former CEO of Enron, Jeffrey Skilling, was an aggressive manager. "He used to compete against each other. He knew that while he could keep them afraid of each other and in competition, would have control. When you create an environment where, if you want to be among the best and the bright, you got to play the way the boss has set up, is not a culture where people are going to challenge the top management. "

Personal greed often pushes people to do unethical activities. Andrew Fastow, Enron's CFO, has sold $ 36 million of its investments before the company went down. Kenneth Lay had many offers of love with members of his family. Skilling was said to have got away with about $ 200 million. You could call that greed abundant. Business ethics is more important among the leaders of an organization. The leaders set a precedent for the behavior of all employees, giving major importance that the model they provide for their actions. "The model employees - which is to emulate - the behavior of their leader who makes the top leaders, the ultimate responsibility for the culture of your organization -. Including the ethical culture."

Clientelism can often affect organizations in a negative way, causing people to behave unethically. Enron had a tendency towards cronyism, which is biased toward friends or family. The managers of Enron divisions grew arrogant, thinking they were invincible. They had a tendency to shut themselves from things outside. Skilling set up a system of ranking among the employees who have determined the fate of their work. If co-workers gave you a poor report, were out. This instantly created alliances between groups that were willing to play ball and ousted the "Boy Scouts". "They had a thing called rank-and-yank system performance evaluation, which eliminated all those who have fallen behind, a real Darwinist system that took care of anyone who might potentially disagree. All informants were rejected, humiliated or treated by the various actors intimidating. and finally their 1999 annual report that lists all members of the board by their nicknames suggest a tendency towards cronyism. "

It thrives in an immoral world: A Case Study RG LeTourneau

RG LeTourneau is considered by some as one of the most influential people in the last hundred years. LeTourneau made a priority to give to others - gave away 90% of its income and 10% lived alone. He based his work on moral principles, ethical and religious. He has a great example for his employees and instilled a sense of gratitude and giving them to. "At the age of 44 I lost so heavily on contracts that my employees, with more faith in me that I had in myself, has a collection to get me back on my feet." LeTourneau had dropped out of school from a small town, but this did not prevent him to compete with some of the largest companies in the country. Letourneau had fierce competitors made by Caterpillar, General Motors, International Harvester, Allis Chalmers and more, all large companies with high-powered executive staff. During the Second World War, produced some of the most important LeTourneau earthmoving tools to date. During the Second World War, more land had to be moved through all the wars of history combined. LeTourneau machines consisting of more than 50% of all the earth moving equipment used in the war.

An example of the moral and ethical LeTourneau is evident in a story from his autobiography, Mover of Men and Mountains. Partner LeTourneau had fired some members of the family of LeTourneau who worked for the company. LeTourneau and her partner had had an argument and his partner decided to leave. After the split, the company completed a project for the South Pacific that has proved a disaster, nearly killing some of its workers. LeTourneau come to be known, including $ 100,000 in the workplace. Some time later, his former teammate came to him and said that they did feel a bit 'Southern Pacific on the job, he felt entitled to the money. Partner LeTourneau success to be an elder in his church and LeTourneau was stunned that a Christian would behave in this way. He knew that the money was rightfully his. One of the friends of LeTourneau had also recommended to let your partner to sue, because they "did not have a leg to stand on." After some reflection and prayer, LeTourneau has decided to give his ex-girlfriend the money to avoid a legal battle and a possible split in the church. He would leave the rest to the Lord. It was discovered that a year later, after two bad contracts on his own, his former partner has been wiped out. LeTourneau was convinced that if the Lord did not think you're worthy of having money and responsibility, must find a way to take it away. In his autobiography, LeTourneau says, "real partners do not try to see how you can get from each other. They work for the good of the partnership. They try to help each other."

LeTourneau basa his principles of life in many scriptures from the Bible. His favorite was Matthew 6:33: "Seek first His kingdom and His righteousness, and all these things shall be added to you". LeTourneau sought the righteousness of God and has certainly achieved great prosperity.

Good Ethical Process: A Case Study Johnson and Johnson

In 1982, Johnson and Johnson had a crisis with reports of cyanide Extra-Strength Tylenol in their bottles. Seven people died in the accident. Johnson and Johnson would have been forever tarnished by this episode. Instead, against all human nature, they abandoned all financial influence on their decision making. They have based their decisions to come of what he felt was right for their customers. The company has ordered a total withdrawal of 31 million bottles that cost more than $ 100 million. They stopped production of the original bottles and began producing a new tamper-proof bottle. Johnson and Johnson was competent enough to "use the crisis to establish [its] customers [its] commitment to customer safety and product quality Tylenol." Johnson and Johnson also displayed a willingness to be honest with the public and to correspond with the media, which has assisted in terms of building credibility and trust of customers during the incident. After the accident, photograph of Johnson & Johnson fell seven points and has dropped 27% to 35% pain relief market which once enjoyed. Several months after their ethics-based efforts to make the crisis of law, Johnson and Johnson recovered and surpassed their previous market share. Johnson and Johnson shares are a strong testament to the benefits of acting ethically in a moment of crisis, when it is most important.

Conclusion: can not prosper unethical

A writer's opinion, it is impossible to prosper unethical. We can have prosperity from the beginning, but invariably come to an end or the loss of work or business, the seizure of any property that might have built, and at worst, a first-class ticket to jail. There can be a great case for the effects of unethical behavior compared to the terrible events that occurred at Enron. Behave unethically forever tarnish your reputation and leave you little room to gain people's trust again. Michael Hackworth, CEO Aspirian Corp., believes that good ethics is good business and ethical leadership save money. Good ethical practice ensures a confident and prosperous career or job, even in an immoral world .......