Business Ethics and Promotional Items


A popular way to get your business on the business to business situation is the giving of promotional items as corporate gifts. This is done to varying degrees by all sorts of different companies, from handing out branded pens and mouse mats to all employees at a seminar to choose a very special and expensive personal gifts to present the VIP you want to choose offer.

These methods are very effective. If the brand is dotted around the office on different mugs people, desk calendars, stationery and so on, it will definitely stick in the minds of employees working there, some or all of the effects of the products and services that the company uses. By choosing Killer gift for an important executive, you have to show not only that business has gone to some trouble to understand their tastes, but that you value their custom enough to sometimes make a significant outlay of bespoke products just to impress them.

Of course, it is not as simple as that. To avoid undesirable scenario where contracts are simply given to the vendor who spends the most money fun and pampering decision makers, many companies have policies about what can be accepted, both in terms of corporate hospitality and in terms of promotional items.

These rules can be from very mild (staff can accept anything but to describe it as over a certain value), the direction in which the only gifts under a certain, sometimes very nominal, are acceptable without violating the policy. This generally makes standard promotional merchandise fare trademark office accessories giveaway acceptable, but attempts to wow CEOs with custom promotional items as well as some specially engraved wine glasses and they have to turn down a gift or risk losing their job. Some companies, including several large well-known brands, with a strict “no gifts” policy, where it is considered unethical to even accept a cup of coffee bought for you with potential or current supplier.

Make sure you are aware of the corporate gifts business policies you want to deal with, so there is no unpleasantness or money wasted if it turns out that they prohibit promotional items assessing gifts . You can often find this information on their website, or in materials sent to you when you expressed an interest to bid for their custom. If not, you can always ask someone there -. It shows that you take the business seriously and so will not cause offense


How to Manage Crisis moral


Most people experience pressure to achieve goals; and other people respond differently. Some may even resort to unethical behavior over time, is likely to affect both the individual and organization adversely. Therefore, you may have a moral crisis to deal with. Because most organizations approach protocol is usually driven crisis is right to be prepared for such an event. Here are some important points …

1. Follow established governance.

to put a positive spin on a negative situation, moral crisis within the company provides an excellent opportunity to demonstrate managerial ability. Ensure that you:

o law immediately. Management is all about action and implementation-get it done. While staff under pressure can not fully comprehend the consequences of inappropriate and hasty action, inaction on your part can never result in relation to the behavior of the violation code organization for ethical behavior.

o Provide support. You need to be sensitive to the needs of individuals, and to shape, direct, and focus on them for the benefit of the group as a whole.

o show leadership. Exemplary behavior will prove to be moral is to focus on the cultural business objectives and goals.

2. Keep crisis in context.

Ethical issues are an ongoing struggle for the struggle for organizations everywhere. First, in the crisis, to ensure that the event is a real moral crisis. A perceived crisis could involve solving conflicts, clarify ambiguities, dealing with stress, or control problems associated with the ongoing changes. Genuine ethical crises are typically associated with long stressful ethical predicaments-too-good-to-be-missed opportunity, super align goals and other adrenaline-raising activities or ambiguous situations such as indiscriminate use of sick leave or disregard the management to ensure safety workplace. Addressing the ethical issues arising from this situation is a real challenge.

3. The system to deal with crises.

Bring a group within the organization responsible for dealing with ethical crises. This ethics committee, representing all groups within the organization, is a much better option than having one trying to deal with such issues. Committee structure would also allow staff to raise concerns without fear of recrimination.

4. Draw the right picture.

An ethics committee must first establish the facts that lead to a clear understanding of the situation. Some of the questions considered at this stage would include:

o we have a problem-a real crisis?

o What is the problem?

o What are the data available?

o What has caused this situation to arise?

o Who are the stakeholders?

o What options are available to us to deal with the problem?

5. The organizational perspective.

of whom ethical organization or rules of ethical conduct have been breached. The ability to take this action shows the importance of ensuring that the code organization of ethical behavior is a practical document. Having made clear the position of the Agency, the Commission needs to ask the following questions:

o Is additional information required before a decision can be made on certain behavior?

o What would happen if we did nothing?

o Are loyalty that may be at risk?

o Are there others who need to be involved in making the decision to work?

6. Deliberate before making a decision.

decisions on ethical issues should not be like a knee-jerk reaction. You could, for example, consider applying the worst as a tool to help the committee choose between competing options. The committee could ask whether the report of the crisis was likely to be listed on the cover of the main local newspaper. If so, what would the public response be? Any action that should apply? When the issue broader community concerns have been addressed, to these questions:

o problem should be discussed with the relevant parties before making a decision?

o How sensitive should the situation be treated to prevent or minimize damage stakeholders but at the same time the sole force organization and establish a workable and acceptable situation?

o Is the Commission certain that the adoption will be valid in the long term?

o How can we ensure that such a situation will not come back?

7. Implement action.

When a decision has been taken, the Committee shall establish, implement and monitor action including information on how to inform all those who need to know the outcome of the investigation. This list could be the boss, a table, some or all employees, affected families and the wider community.


Ethics – Ethics Crisis In Business at Rice


Business ethics – blah, blah, blah. There is no such thing. There are only ethics. They stem from values, attitudes and beliefs. Since people make up companies and organizations, it is their values, attitudes and beliefs that get brought in this environment. How they match up is a measure of performance.

The 2007 National Business Ethics Survey was released last month and guess what? They are Baaaaaack! Problems are over and the pre-Enron levels. Research reports that only 9% of companies in the United States have strong ethical culture. Is yours one of them? Over 50% of employees surveyed said they saw ethical misconduct of any kind, and were afraid to report it for fear of retaliation or that reporting would not cause any structural changes.

What has failed in the past?

  • Hotlines – they do not. If employees want to report abuse, they prefer to do it to someone they know and feel comfortable around. The challenge? What if the person they are comfortable with is involved in the offense?
  • or conducting business that are not congruent with the values ​​creates conflict and includes ethical decision making on the part of employees. Do what is right or what will generate revenue and profits?
  • Heavy handed ethics penalties. The “off with your head” mentality is not conducive individuals who want to do the right thing. The plan is based on fear.
  • create value, to send them into the break room or on your website and sales system called moral values-based business.

Creating a culture that is moral or based should not be treated as a single event. This will involve taking a consultant to come in and conduct an initial assessment to determine the cultural climate. This will also include a series of training conducted seminars, workshops, conference calls and other means of leadership, staff and employees. Provides clear objectives, functions and values ​​will be established with responsibility for both the consultant and the company in order to achieve the desired result.

What will work?

  • establish clear values ​​and organizational code of conduct.
  • Interpreting the values ​​for employees.
  • values ​​you wages are behaviors you can expect.
  • Hire, promote and develop a succession plan that is consistent with the company’s values.
  • Show employees that report is important and provide many safe havens for reports.

Now is the time to start coming true competitive company in the marketplace. How much is this costing your business in terms of lost employees, lost sales, can manufacturing, employee conflicts, reduced communication and a myriad of other areas with financial implications?


Business Ethics in Islam



One can earn money in two ways; one is agriculture and the other companies. If the company is not made in accordance with ethics will always be inflation and shortages of goods. As it can be seen in the case of many commodities like wheat, sugar etc. It is because of the stocking, speculation and selfishness of some businessmen. The government has also become a trader itself, but has stopped Sharia Islamic government out of business.

As it can be seen that the business is an important part of life, the Prophet Muhammad (PBUH) said: “People get 9/10 bread for their business.” Islam explains the concept of just trade by saying ethics. If business or other thing is done against morality and religion, this will lead to bad on the day of resurrection. Also by law, the guilty of illegal business would not end anywhere. Islam emphasizes the importance of business ethics lot. Allah says in the Qur’an, “they say to buy is also interested but Allah has described the purchase as permissible and interest as forbidden.” And “When you buy or sell then do some witnesses of it.” The Holy Prophet Muhammad (PBUH) said, “If the store was not there it would become a burden to others.” He also said that “A trader is the patron of average daily bread and fed the dignity of oneself and others.” The Holy Prophet Muhammad (PBUH) urged trust worthy merchants in these words, “A reliable and honest merchant should be with the prophets and truthful and the martyrs and the righteous.” “God shows mercy to a person who is well when he sells, when he buys and when he makes a claim” The Prophet emphasized truthfulness and justice businessman lot. He said, “Truly, traders rise sinners on the day of resurrection, but he who fears God and is good, and speaks the truth.”

Business and ethics

As Muslims, we must follow the Code of Conduct, not only in business but also in all aspects of life. Both business and ethics are interrelated. There is reference to this in the Qur’an, “for you in the Messenger of Allah is a fine example to follow.” Allah Almighty says: “For Mady people (we sent) Shu’aib, one of their brothers, he said:” My people Worship Allah, you have no other God but God and do not give short measure or weight! … I see you in prosperity, but I fear for you the punishment today as a compass (you) all the rounds and my people give just measure and weight, nor keep from people, which must:.! do not commit evil in the land with intent to do mischief. It is made up Allah is best for you, if you (but) believed! But I am not set over you to keep watch! “

Prophet Muhammad was chosen by God to be the last prophet and his messenger at the age of 40. Before that he was very much involved in the business. He and his wife Khadija were both traders. It is reported that he traveled to Syria, Yemen, Bahrain, and many other places in Arabia for business. Some historians have also pointed out that he traveled probably to Iraq and Ethiopia. From a young age he was involved in business. He had a good reputation as a hardworking, honest, truthful, and a very successful businessman.

Fair business relations

Holy Quran and Prophet Mohammad (PBUH) have made it clear that a Muslim must be honest and upright in his business and policy deal. Also true Muslim should keep their word and fulfill their promises, avoid fraud and avoid fraud and perfidy, not encroach on the rights of others, nor engage in unlawful proceedings. Also good Muslim not bear false witness, and abstains from illegally received funds from usury and graft. According to Islam who is not free from these vices, is not a true believer but Renegade worthless transgressor.

And the Quran is rich with verses that confirm this. Allah says in the Quran, “Eat not up assets unjustly and dishonestly each other.”

Allah forbids all unclean and corrupt means of making money, such as unfair trade, gambling and bribery. And the Holy Quran has explained and described the practice in many verses of his. He says, “Woe to those that deal in fraud, – those who, when they have to receive Measure from men, exact full measure, but when they have to give by measure or weight to men, give less than due, they do. do not think they will be asked Mighty day when (all) mankind stand before the Lord of lords. “

Another example can be found in the coming verse, where Allah urges Muslims to be very specific about trust their rights and the rights of others. “Allah invites you to make back your confidence, that they are due.”

Major principles of fair activity

According to Islam, the following points must be avoided to start fair trade.

1. No fraud or deceit, the Prophet (PBUH) is reported to have said, “When the sale is held, say, there’s no cheat”

2. Sellers must avoid making too many oaths when selling products. The Prophet (PBUH) is reported to have said, “Be careful of excessive oaths in a sale. Though it finds markets, it reduces a lot.”

3. Agreement is needed. The Prophet (PBUH) is reported to have said, “The sale is completed when the two involved depart with mutual agreement.”

4. Be strict in terms of weight and dimensions. The Prophet (PBUH) said: “When people cheat in weight and measures, provision of cut off from them.” He said the owners of measures and weights, “You have been entrusted with the affairs over which some nations before you did.”

5. The Prophet (PBUH) forbade monopoly. “He monopolizes is a sinner.”

6. Free enterprise, the price of commodities should not be fixed unless there is a situation of crisis or extreme necessity.

7. Hoarding merchandise to increase prices is prohibited.

8. Trading in the forbidden (Haram) items, such as intoxicants is prohibited.

Fraud and dishonesty in business

Prophet Muhammad (PBUH) has stressed the importance of honesty in most of his sermons and said, “Remember, there is no faith in him is not reliable ,. there is no place for him in the belief that cares not pledged his word or promise He (PBUH) also said, “The signs of a hypocrite are three, when he speaks, he is false, as he promises, not him; and when he is trusted, he plays false. “

condemn those who cheat in business Prophet Mohammad (PBUH) has said:” Whoever cheats is not of us. Speaking and fraud are things that lead one to hell. “

When Muhammad (PBUH) was the heap of grain on the market Madinah and put her hand. His fingers felt damp. On being asked, the trader said that rain had fallen on it. The Prophet (PBUH) observed:” Why did not you then keep (wet section) it on dry grain, so that people can see it? He who deceives is not one of us. “

Thus, traders who deceive by showing customers a false sample or by concealing the defects in the products they are selling are not true Muslims in the court of Allah the Prophet (PBUH) and they are going to end in hell.

Prophet Muhammad (PBUH) said, “The seller must provide the buyer defects, if any, in the quality of the article offered for sale. Should this not be, the seller will be permanently caught in the wrath of Allah. “

In short, all kinds of fraud and dishonesty in business is prohibited in Islam. The Holy Prophet has expressed strong dislike him for those who do.

Bribery in business

Fines and usury, however, could be pursued by mutual consent and agreement, are absolutely prohibited and forbidden. Those who are guilty of them have been condemned Allah and Prophet (PBUH). Prophet Muhammad (PBUH) said, “The curse of Allah upon him, that offers loans at usurious terms, and him who receives, and those who are witness to it, and the writer who wrote the piece in place. “

Prophet Muhammad (PBUH) said,” If you made a suggestion for all the just way and happy party gave him something as a gift (in return for it) and he took it, he committed a serious mistake ( which means that it, too, is a form of bribery). “

usurpation of another’s property by force or fraud or dishonest litigation is even worse. Prophet Muhammad (PBUH) made it clear, as he says,” Who occupies the land of another unjustly will be sunk into the ground with plot the Doomsday until he reaches the lowest layer of the earth. “And” He who buys property Muslim unjustly by taking a false oath (formerly officer) is debarred Allah from entering Paradise and hell fire is made inevitable for him. “Prophet Muhammad ( PBUH) again, is said to have warned a man who was very fond of entering into litigation with one of these strong words, “Remember, the person who will get another person’s property by swearing a false oath appears that leprosy before Allah (on the Day of Judgment). “

And again he (PBUH) said:” He who laid claim to anything that was not is not of us. “


Business Ethics – the boundaries are not always so clear


Business ethics; this is an oxymoron like jumbo shrimp or military intelligence? These days it is hard to say. With all the uproar in government these days for bankrupt states and trade unions need bail outs, people start to wonder where the ethics went into business.

man who had been a trusted advisor for hundreds of people for many years has been in prison for all his business was based on an elaborate Ponzi scheme that, in the end, these people defrauded of their money. That made the money; he is now in prison. It’s certainly not ethical. Does it seem unimportant in prison? Not much; He still talks about the gullibility of people he tricked

The Columbia Encyclopedia defines ethics as :. “. The investigation and assessment of decision-making companies, according to the moral concepts and judgments”

I suppose this subject is still taught at the Columbia School of Business so why not anyone seem to learn it? Is it because there is such a dearth of ethics in our business world today? Have greed destroyed our judgment? Is it so important to make a lot of money it does not matter who we come while we’re climbing the ladder to the top?

Ethical issues should be more complicated because we have a more global economy and international trade. Perhaps this is part of the problem. Maybe, say people, we would return to our world of morality if we did not try to think and act the Cross Cultural lines. This should not make any difference to us. Our values ​​should always be the same and ethics should always be at the top of the list our company.

Sometimes we find ourselves working with other cultures where certain races or religions are not well understood. We deal with companies in other countries that denigrate women. We should not allow our dealings with other countries to disrupt the values ​​of our country. Good business ethics should be at the top of our list. In wanting to make money for the company should not spoil the ethics of their employers. Even if a company can be fined for breaching ethics, sometimes it does not affect the company and employers to do what is right. Why is this? It is because the company can afford to pay whatever fine is proposed and then proceed to go on to make even more money until they are caught again

Business ethics has come to mean :. Do not break the law, do not attract a civil suit; do not mess up the company’s image. In theory these three rules would lead the company’s employees down the straight and narrow. It does not work because you can not teach a man of ethics. It’s like morality. It is instinctive; right or wrong. Because profitability comes into play in any discussion of company business ethics are often bent or completely broken.


The Critical Importance of Business Ethics For Effective Leadership


How important are ethics to be an effective leader? According to the American Management Association, is an important characteristic of successful leaders today. In a survey of 462 executives who asked: “What characteristics are required to be an effective leader today?” 56% ranked ethical behavior as an important feature, after a judgment (51%) and be adaptable / flexible (47%).

However, with due respect for the AMA survey, I believe strongly that there is much more than “important,” it is “vital, essential and non-negotiable” signs of effective leadership. Strong business ethics is a strategic pillar of my strategic thinking corporate training efforts on a daily basis. Customers are encouraged to develop a set of core values ​​and guiding principles and publish them for their customers and stakeholders to know that this is the way they do business. And furthermore, customers are constantly reminded to make sure that baseline out in everything they do.

Examples of unethical behavior abound in stories of companies worldwide. And people witness of any kind of unethical behavior in their workplace every day. Unethical behavior where people deliberately going to harm themselves or others, develops from and is reinforced by, destructive states of mind, including fear, greed, anger and jealousy. The agreement, ethical behavior increases the welfare of all because it evolved from IDS and supported by strong impulses and emotions, such as love, joy, generosity and compassion

We need to ask these questions :. “How morally vulnerable is our business or organization?” “What are the core values ​​and principles of our organization?” “We are committed to live and demonstrate our core values ​​in everything we do?” The answers to these questions will define the status of ethics in our business.

Leadership in business must set the standard and “walk the talk” when it comes time to ethical behavior. There can be no compromise on ethics. There can be no “waiver of ethics.” A leader must constantly keep his or her actions above reproach. If leaders are committed to a high standard, there will be no more Enron, WorldCom, Tyco, and ADELPHIA ethical meltdowns.

Knowing what is right is very important for personal and business ethics. Do what is right is absolutely critical to personal and business ethics. Strong unwavering commitment to your values ​​and mission of your company or organization will lead to the right ethical decisions and actions. In the absence of these measures, all one has is good intentions and simply is not enough for effective leadership.


Why Business Ethics are important?


Before we seek to find out some of the business ethics that business people should embrace, it is necessary to first understand what the word “ethics” means.

Ethics are a set of moral principles that are recognized with respect to a particular class of human actions or a particular group, such as medical ethics, corporate ethics, teaching ethics that brings together people of the same profession.

These principles deal with the effect on human behavior with regard to concepts as being good or bad, noble or ignoble, right or wrong, etc. These values ​​guide the group members to act in a way that is consistent with the values ​​and standards set. Business ethics are the virtues that business people apply to business decisions. Those standards are expected within the business, even if they are not written down and that business people should adopt. For example, business people are expected to weather the least suffering to their customers, to be fair in their dealings and foster sustained virtuous corporate character in general.

Business ethics are important because they keep the business people to operate within ethical and legal platform that not only leaves them satisfied internally but also increases sales because most such deal or transaction with honest businessmen. Also, if the public or potential customers perceive you to be involved in inappropriate on business, they will avoid you.

Good business ethics should be taken by all businessmen to participate in unethical practices that may involve violations of the law can lead to heavy fines or a lack of confidence with the public. Some of the business ethics are the following:

1. Being trustful by recognizing that the customer is king. Customers want to do business with companies they trust and who they perceive to be to show them respect. When the entity is a trust, it creates a loyal clientele.

2. Business people should be ready to meet the obligations of their customers and business partners regardless of anything else. Business people should offer their end of the agreement at all costs because this is the only way to cement customer loyalty and business partner is.

3. Participate in fair trade as ensure a safe workplace for employees, fair prices for products that will at least cover the cost of production and handling you customers well among others will ensure high trade turnover.

4. Every businessman wakes up every day in order to make profits. When a company operates within ethical realms, there will always be a clear sign of economic growth. Equally, companies need to make profit so as to meet ethical obligations to the company or its employees, government and customers.

5. In fact, being an ethical business person who builds the image of reliability and sets reputation with your customers, two things that are very important to the company.

Most companies are not eager to implement a business ethics. Most of them believe that making a profit is important but as they realize later, no matter how hard they try, they do not reach their goals.


Psychology Ethics


about the role of ethics in personal development and the need to develop a comprehensive psychological ethics

Ethics is a very appropriate area in the study of psychology as ethical values ​​of what is wrong and what is right directly related to the moral status of the individual in community. Our morality may well connect with morality if our morality is individual and moral standards could be between cultures, societies and religions. Ethics, however, are more generally as they rely on basic human nature and human values ​​and ethical values ​​are more human and therefore more about the psychological dynamics of the moral values. However, ethics is considered a branch of ethics

In a study of the psychology of honor it is important to distinguish between ethics and morality and psychology of Ethics was about the value of being human but Moral psychology specifically addresses questions morality. Moral psychology or psychology of morality is thus seen as part of a broader psychological ethics. Ethics deals with morality and questions of right and wrong, moral and immoral, virtue and vice, good and evil, and the responsibility of being human.

Ethical philosophy also shows how moral judgments and ethical statements or attitudes formed. Ethics was studied in philosophy from the days of Socrates and Aristotle and was self-implementation of the needs of the human condition. Doing the right thing at the right time and the right way for the right reasons is considered virtuous and ethical. Yet the psychology of ethics would take more than just understand the moral values ​​and strengthening human condition. Psychology ethics is the key to our faith and beliefs and the formation of these beliefs also how value system shaped in childhood through moral development. Psychoanalysis and social and developmental psychology could use a range of theories to explain the moral development in children and adults.

Freud has used the concepts of Id, Ego and Superego suggest that Superego serves as a moral filter and helps individuals to decide what is right and what is wrong. The id, ego and Superego is described as three parts Psychic devices with ID’s basic instincts and desires, ego is a practical component that balances the desires and Superego is what monitors and controls, and the part that has strict moral dimension. The Superego is part of the psyche that addresses moral and calls us to a moral argument. This means that we seek moral explanation of behavior or tend to consciously or unconsciously behave in a certain way because the underlying moral needs.

Apart from psychoanalysis that would explain ethics mainly as an instrument controlled and directed Superego that all dark unethical desires are somehow filtered, moral development is also explained by social and moral psychology.

In social psychology in group would mean following the principles of compliance and consistency determines the extent to which social behavior would be in accordance with what society accepts or believes that standard. Standard behavior would actually be closely related to ethical behavior, so in the context of social psychology, ethics is consistent and do what is right according to social standards or values. If we consider developmental, individual needs are met through social comply with the following ethical standards and engage in ethical behavior was consistently rewarding individuals and would encourage or reinforce ethical standards. Ethics meets social and recognition of our needs and our moral needs to control our desires. So psychoanalysis would consider ethics as the moral side of our psychic structure and according to social psychology theories of ethics is necessary to group behavior and compliance of ethics under the social teachings of the important social orientation of our relations. Some of the questions that were central to the psychology of ethics at levels related to the development of ethics. This would be similar to moral development, however, ethical values ​​and attitudes were a distinct and unlike public morality shaped even in old age.

The slightest distinction between ethics and morality Apart from the fact that ethics is part of a broader moral psychology is ethical may vary or related attitudes can change over time. For example, euthanasia is a moral decision and doctors or nurses who have these conditions in their work depends on their ethical stance and this could have an impact on what they have learned in their work, their years of experience and personal upbringing or value systems.

In some cases, conditions may determine ethical decisions also social systems and individuals and their thoughts are influenced by others in moral development providing social teaching of ethics. However specific theories as cognitive dissonance theory could explain ethics that change the behavior or attitudes through the discomfort to a particular view of things. If certain features are fundamentally incongruent with attitudes held persons must either change their actions or beliefs and that personal ethics would also change. Evolutionary psychology also explains the moral and ethical development of our and when we are constantly reward the community for a certain behavior, we would naturally consider this as a positive and this would then be socially acceptable and ethical. Behavior rewarded over time are finally considered ethical and ideal.

Psychology ethics must include the theory of psychoanalysis, developmental psychology, social and developmental psychology to provide a comprehensive understanding of moral development and changes in the development of ethics. Ethics would be affected by the unchangeable element core values ​​that we have and dynamic element of experience that ethics is the rule of law and even changed by the experience.

Stages of moral development will have a general structure of social and moral development of individuals going through guilt in childhood (of damage, etc.) with a group of consistent and learn what is right and what is wrong. This is further elaborated in adolescence is marked with the identity crisis (as suggested by psychologists including Erikson) and ethics formed in adolescence as part of this group identity. When 20-year-old man says to himself: “I believe cheating is wrong”, he is suggesting that his sense of ethics is connected to his sense of identity. Finally, in the middle and late adulthood practical changes can lead to changes in ethics and the final stage of consideration and evaluation as there is food and the need to protect their own moral beliefs and attitudes of people. Stages of moral development could therefore guilty group conformity identity crisis- identity consolidated experience change-food defense.

Psychoanalysis and the role of the superego may indicate why ethics formed in humans and general interaction of psychic structure and the formation of ethics. Evolutionary psychology shows the interaction of biological structure or the human body systems and moral formation and suggest how ethics formed over years of development and social psychology shows general interaction of social structures and the formation of ethics or value system and is focused on the basis of ethics in society to tell us what ethics formed in accordance with the requirements of society. History Michel Foucault’s sexuality with a focus on social systems could also provide insight into the study of the formation of attitudes, values ​​and ethics.

Along with the social, developmental, psychoanalytic and development size of ethics, it is important to define the types of ethical decisions such as ethics from a legal perspective, ethics, ethical, ethics of educational context, ethics from the medical point of view and so on . Business ethics, legal ethics, medical ethics and all branches of ethics must consider the psychological stages of moral development with social, psychoanalytic, evolutionary theory

from Reflections in psychology -. II – Saberi Roy (2010)


Business Ethics is a moral responsibility


ethical business conduct standards are related to moral judgments apply to people engaged in commerce related sites (Gitman, 2012). Shareholders and interested parties are two different groups of investors who have a vested interest in the success of the company. Shareholders are investors who are not employed by the company, have bought shares (stock) in company with the hope of increasing their investment. Stakeholders include customers, employees, owners, creditors, vendors, who actually do the job of the company, or have a direct economic impact on the company’s success (Gitman, 2012).

Ethics plays a big role in the success or failure of the company. For example, if a company files will profit or loss in the financial statements to show a more favorable picture to its shareholders rather than actual financial data, shareholders lose confidence in the company and sell their shares. Also, if stakeholders are treated unfavorably or not paid on time, the turnover and the inability to secure credit will also affect the company’s bottom line. Some argue that managers have required only to please their owners, because the group provides much of the money needed for the activity (Gitman, 2012). However, if stakeholders are unhappy with the operation of an important cog in the wheel is missing and will eventually cause the company to fail.

Examples of misrepresentation to investors, banking failures and the housing market crash of 2008. Mortgage securities are real mortgages that are sold by mortgage brokers, packaged as securities, offered by financial institutions for investment (Brigham & Ehrhardt, 2011). Mortgage securities contributed to the global economic crisis by being presented as a lower risk than the mortgage is security really were. (Brigham & Ehrhardt, 2011). Buy this letter expect a healthy return on their investment, but instead was to buy mortgages that were at risk of default. These mortgages were risky because mortgagees not be able to provide loans for floating rate, or fraudulent lending practices engaged in by the mortgage banks misrepresented information to clients. Also, when the demand for housing began to fall due to the number of defaults on mortgage loans and unemployment, home prices fell and the number of short sales and foreclosures forced the closure of several banks. Lending slowed dramatically and this could affect US companies, individuals and other countries around the world.

management has primary responsibility for both its shareholders and stakeholders in order to ensure maximum profit and growth within the company. It is the duty of managers, directors and officers of the company to maintain a high standard of ethics so that both shareholders and stakeholders have confidence in the company and want to remain investors and committed to their goals. Both of these groups have a huge impact on earnings per share of stock of the company, and both are important in the growth and maximum profitability.


Brigham, E., Ehrhardt, M. (2011). Financial Management: Theory and Practice

(13 ed.) Ohio: Cengage Learning. ISBN-13: 978-1-133-66500-7

Gitman, Lawrence J. & Zutter, Chad J. (2012). Principles of Managerial Finance. 13.


Prentice Hall.

How To Build A Business Ethics Program


Recent financial scandals have highlighted the importance of business ethics and compliance. Yet a recent National Association of Corporate Directors (NACD) survey of 280 corporate CEOs and directors found that “only one of three directors felt that they were highly effective in ensuring compliance with the law.”

Ethics in Business

Most companies realize that they need to develop and implement a business ethics and compliance program

An effective program is :.

o Bring protocol that reduces the risk of criminal behavior

o Identify injustice, foster quick investigations, minimize the consequences of

o demonstrate ethical / legal philosophy of the company during the investigation

o Reduce fines if company is found guilty of wrongdoing

o Increase business reputation and stature

Looking at Options

But how to build an effective system? Companies find themselves with three options to build applications

o Develop in-house from scratch

o Hire external consultants

o Use pre-written manual

And most of these companies learn a few lessons -. sometimes the hard way

Making Strong Company Policy

Development program from scratch can be very time consuming and expensive. Also, the company might not have the knowledge or understanding of the complexities involved. But hiring an outside consultant is not always a cost effective option either. So what’s left?

develop business Ethics Program

By using pre-written template or manual, many companies have found it easier to develop business ethics program. And to do this, they look for what a strong program needs

A very effective tool to create, plan and execute sound business ethics and compliance program should provide :.

o Sample policies and procedures

o Step-by-step guide for the development of a program

o A business ethics training program outline with classroom materials and follow a detailed session leader is

o Business Ethics and Compliance Officer position description

o Templates for the involvement of employees

or Sample Code of Conduct

Implementation of Business Ethics Program

If the Board is committed to a strong ethics and compliance program, the next step is to put the manual in the hands of corporate executives responsible for implementation. Used properly under advice of counsel, this efficient tool will yield a solid program that the board understands, assign, and monitor effectiveness.

with step-by-step instructions and follow the examples of policies, procedures, training program, and poll worker, an effective tool provides an excellent road map for the implementation of the ethics and compliance initiatives.

Maintaining a Culture of Ethics

Companies should ensure that their ethics compliance manual provides fully editable MS Word files with sample policies, surveys, forms and training session outlines. Also, companies should ensure ethics compliance system manual is to be fully supported by the National Association of corporate executives (NACD) as a tool to maintain a culture of integrity.