Ethical Business Decisions
Business ethics is paramount in 21st century business. Companies must not only prepare for unexpected ethical dilemmas, but they must develop proactive strategies to address common ethical business decisions that are pervasive in their industries. Some ethical dilemmas are specific to certain industries, but a number of the most prominent ethical business decisions are constant across many industries.
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Bribery
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Bribery is illegal in the United States but under-the-table money and bribes have existed in business since businesses existed. A 2004 "Bloomberg BusinessWeek" article called "Cracking Down on Corporate Bribery" discusses efforts around the globe to combat major companies involved in bribery. Often excused as simple gift giving, bribes are money or other items of value given to a person or business entity that your company expects to gain from. If you choose to offer a gift with strings attached, it is a bribe and goes against the free enterprise system. You could face legal repercussions. If you avoid bribes, you may lose some short-term opportunities but are likely to develop long-term integrity.
Personal Gain
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In her June 2007 article "Bad Business Ethics or Acceptable Promotional Perks?" published by Santa Clara University's Markkula Center for Applied Ethics, Jessica Silliman describes a work environment in which she routinely saw employees taking advantage of their positions and business partners for inappropriate personal gain. Silliman's point in her personal anecdote is that company leaders establish a high level of ethics in an organization by making business decisions without putting personal gain over the business' well-being. Employees should clearly understand that doing what is right takes absolute precedence over personal gain in the short-term. When company leaders choose to make unethical maneuvers, employees often follow suit.
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Accounting
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The Enron scandal that dominated business news in 2001 to 2002 brought to light the accounting adage "cooking the books." In her "Time" magazine article "Called to Account" from June 2002, Cathy Booth Thomas explains how Enron's accounting and auditing firm Arthur Anderson hid from the government communications it had shared with Enron about problems with its accounting practices. While the Enron case demonstrates a company deceiving the public to cover up business failings, other companies choose to alter their accounting records to save on taxes or for other short-term gains. The public expects financial transparency from companies and leaders convey trust by openly sharing accurate earnings reports. Choosing to use illegal or unethical accounting practices is hard to overcome.
Diversity
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According to the National Association of Realtors (NAR) in its "Diversity is Good Business" overview, America is at its most diverse point in history to start the 21st century. Company leaders realize that diverse work environments are challenging. Some business leaders even have natural prejudices and misconceptions about people that are different from them. Ultimately, executives must decide whether to promote an equality opportunity workforce and to take advantage of diversity, or to let personal feelings get in the way.
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References
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