10 Jun THE ROLE OF MANAGEMENT IN SETTING THE ORGANIZATIONAL TONE RELATIVE TO ETHICAL BEHAVIOR.
Without question “business ethics” is one of the hot topics of the day. Over the past months we have seen business after business charged with improper practices that violate commonly accepted ethical norms. This has led to a loss of confidence in corporate management, and has had severe economic consequences. Business ethics serves the important social function of integrating business and society, by promoting the legitimacy of business operations, through critical reflection. The social function of business ethics is implicit in leading business ethics foundation theories. For this question, you will research and respond to questions related to corporate ethics scandals, unethical behavior, and the impact of Sarbanes–Oxley Legislation (SOX). Look for a recent body of research in the area of corporate ethics scandals, unethical behavior, and the impact of SOX legislation. You should be looking for research that differs or improves upon the existing concepts pertaining to corporate ethics scandals, unethical behavior, and the impact of SOX legislation, which you have learned. The research should be from a peer-reviewed scientific journal, trade publication, or professional journal. You can use the Internet to search for a relevant body of research.
Based on your knowledge of corporate ethics scandals, unethical behavior, and the impact of SOX legislation and your chosen research, discuss the following:
• The role of management in setting the organizational tone relative to ethical behavior.
• What should subordinates do when managers act unethically or encourage them to engage in unethical practices?
• Discuss an example of a corporate ethics scandal other than Enron.
• Based on the above example, discuss why you believe the unethical behavior occurred.
• Based on the above, discuss what the organization could have done to prevent such occurrences either at the time they happened or in the future.
• Discuss whether the provisions of the SOX act will have a positive effect on corporate ethics practices.
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