Ethics and Organizational Integrity
Organizational integrity is a major component of business ethics. Companies are responsible to the communities they serve and should follow ethical behaviors. Enron, HealthSouth, Arthur Andersen and other companies have brought business ethics and organizational integrity to the forefront of society through unethical actions. Certain principles exist to guide companies in organizational choices.
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Right and Wrong
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Business ethics begin with the understanding that a clear right and wrong usually exists. Companies establish precedent in who they are ethically in all ethical business decisions. An ethical decision is a statement of your organization's principles and values. Over time, the market holds businesses accountable for consistency in ethical decision making.
Accountability
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Business leaders must take accountability for personal and company decisions. If management demonstrates accountability for its decisions, other company employees are likely to follow suit, thus creating a culture of accountability. Consumers gain trust in a company when they can rely on its character, ability, strengths and truthfulness.
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Integrity Leadership
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When leaders in a business set a tone of honesty, transparency and openness with stakeholders, others in the company are likely to become ingrained in the culture of integrity. In an era of relationship building, consumers will not understand who your company is if you are not consistent. Accounting integrity is of utmost importance, as many of the most prominent business scandals in the first decade of the 21st century have been due to poor financial decisions and flawed accounting practices.
Corporate Social Responsibility
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Corporate social responsibility (CSR) is one of the more prevalent business trends in the early 21st century. The public expects companies to show commitment to their communities by getting involved in community events and activities. CSR also includes growing emphasis on environmental responsibility. Companies must take accountability for business operations and the effect processes have on the environment. Green-friendly product development and waste management are among notable activities closely monitored by environment groups.
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References
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