In Favor of Ethics in Business: The Linkage Between Ethical Behavior and Performance

In Favor of Ethics in Business: The Linkage

Between Ethical Behavior and Performance

Article Review

Dana Hice

Columbia Southern University

It seems that ethics has been around for many years or at least a perspective of ethics. This being said ethics is not new to human though or even to corporations. Everyone wants to be treated fairly and with respect. May philosophers and fathers of church have discussed human existences and what is is to be ethical (good or bad). Buddha, Confucius and even Augustine of Aquinas had thoughts when it comes to ethical behavior. This particular article does not talk about one business in particular, but all businesses and how ethical behavior can only improve a company.

This article talks about different company and the surveys that were done to find out how ethics work in a company weather or not ethical decisions would make a difference to a company. One survey that involved investors found that three quarters of investors say that board practices where just as important if not more important than financial performance. “Most companies believe values influence two important strategic areas relationships and reputation, but do not see the direct link to growth”. (Yogesh and Shiv)

In this article you will read about a survey that was done on how to achieve success in business. When a company opens they want to make money and prosper not just make ends meet. The survey was done to show the effects of ethics and compliance programmer. Six large American companies were a part of the survey. There were 10,778 employees that were randomly selected to be a part of the survey, and 2,883 responded. This was done to measure the employee’s perceptions and attitudes and behaviors. The findings were that ethics and compliance programs rely on a code of ethics and a telephone hotline as ways of reporting to control how the employees behave. It was found that this method was not effective. The company itself along with the management have to support ethical behavior.

Ethics in business, is important not just to the business itself but all who may be involved with the business or company. This may even include you the consumer. So the stakeholders are other organizations, individuals and groups that are affected by and that affect the company decisions and actions. This article is talking about the ethics of business itself not one particular organization. So some of the other stakeholders to include could be governmental agencies, social activist groups, employees, shareholders, suppliers, distributors, the media and even the community where the company may be located. This article has a lot of information about different companies who have put ethics into place.