Thursday, July 12, 2012

The Business Ethics Boom

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The Business Ethics Boom

The article, The Business Ethics Boom Significant, or Just for Show, discusses the increase in corporate ethics programs and if ethics and decision making go hand-in-hand? For example, when does a business cross the line from making a profit to stealing the profits? The article also discusses how in the past businesses had a host of ethical issues to deal with, but now with the current environment of continuous and rapid change, businesses are presented with a multitude of new challenges.

What is the definition of ethics? A set of principles of right conduct. A theory or a system of moral values. The rules and standards governing the conduct of a person or the member of a profession (American Heritage Dictionary). Any decision made by a company needs to be made with an informed awareness of the specific situation and then acted upon according to some sort of system of principals. My company has a very large concentration of accounting and investment employees, who are responsible for making countless financial decisions.

At Aames Home Loan, there is a continually focus on business ethics, what we can and cannot do, what we cannot accept from our vendors and how we should conduct ourselves in business situations. Ongoing attention and dialogue regarding ethics and values, builds openness and truthfulness - a critical ingredient to building strong employee/employer teams in the workplace. According to the article, attention to ethics in the workplace helps employees face reality, both good and bad, in the company and in themselves.

Because businesses have the power to spend vast amounts of money, they have the ability to change situations, affect the lifestyles of individuals. They have the ability to affect many people; they have obligations to their employees, stakeholders, consumers, and the community. Financial decisions cannot and should not be made without ethics. Society dictates a set of rules and standards and seeing a business strive to meet those goals means that the goals can only be achieved based on standards, values and morals set by society.

The concept of ethics can be interrupted in various ways and mean many things to many different people; but usually it is knowing what is right or wrong in the workplace and doing what is right in regard to products, financial services, and internal as well as external customers.

A structured ethics program, as stated in the article, is one that my employer could implement. Ethic programs help maintain a moral course in turbulent times. Attention to financial ethics is critical during times of change, times much like those being faced by my company and many other companies as well. A strong ethical program aligns employee behaviors with those with ethical values preferred by leaders of the company. Ethics programs support employee growth, help employees face reality, both good and bad. The objective is to ensure that ethical concerns are always a motive, not just when it is convenient.

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