People have always adhered to compliance with rules, regulations and standards that govern everyday living. Most people are aware that there are universal codes of ethics and morals that guide in decision making, as well as in the assuming the expected conduct of behavior. Ethics, most especially, is crucial in business. As asserted by Pitts & Kamery (2003),
“ethics are important to firms for a variety of reasons: including the legal responsibilities of the executives, costs of violations, and reputation” (p, 79). Likewise, organizations that design ethical codes of conduct were proven to be more successful and last longer (Wadhwa, 2009; . In addition, those organizations that adhere to ethical standards were noted to have recognized that it is “crucial to sustainable excellence” (Smith, 2013, par. 3). It is in this regard that one aims to explore the contention that ethical companies are more stable and successful.
Description of Approach for the Research
The current study could initially provide an appropriate definition of business ethics and present rationales for its importance in the contemporary business settings. Likewise, statistics and relevant trends could be explored in greater depth to determine the number of organizations that apparently design and incorporate the ethical codes and standards in their organizational policies and procedures. In addition, a closer evaluation and determination if any link exists between designing ethical standards or code of conduct exists and that of organizational success
. The measures of success could use any of the following variables: (1) financial condition and performance; (2) projected image or reputation; (3) market share; and (4) ranks or ratings, awards, or accolades received.
Likewise, the current research could also explore any link between organizations that do not contain any designed ethical standards with propensities for violations of federal laws . As such, it was allegedly noted that measuring the costs of ethics in terms its repercussive effects to the organization could be difficult and challenging. Therefore, some studies have tried to quantify the computations for costs by using any of the following estimates: internal or external failure costs; preventive costs; appraisal costs; as well as penalties and sanctions for violating ethical standards .
Overall, to reiterate, the thesis of the study is to explore the contention that ethical companies are more stable and successful. The main points of the study would present a more comprehensive definition of business ethics; the importance of business ethics to various organizations; and some current statistics on organizations practicing business ethics. In addition, it would also identify the effects of conformity and adherence to well designed ethical codes of conduct to the organization and its stakeholders; the effects of violations of ethical standards to contemporary organizations; and a closer evaluation of any significant links between the practice of business ethics and organizational success. The findings would assist in arriving at a conclusive outcome which validly supports the indicated thesis statement.
References
Ferrell, L. (1999). The Role of Ethical Leadership in Organizational Performance. Retrieved from University of Northern Colorado: http://lindaferrell.com/lead.html
Pitts, S., & Kamery, R. (2003). The Role of Business Ethics: Incorporating Values and Ethics into Business Decisions. Journal of Legal, Ehical, and Regulatory Issues, Vol. 6, No. 1, 77-88.
Smith, J. (2013, March 6). The World's Most Ethical Companies. Retrieved from Forbes: http://www.forbes.com/sites/jacquelynsmith/2013/03/06/the-worlds-most-ethical-companies-in-2013/
Wadhwa, V. (2009, August 17). Why Be an Ethical Company? They're Stronger and Last Longer. Retrieved from Bloomberg Businessweek: http://www.businessweek.com/technology/content/aug2009/tc20090816_435499.htm
Worcester, B. (2007, May 17). Why an ethical business is more likely to produce a success story. Retrieved from The Telegraph: http://www.telegraph.co.uk/finance/2809088/Why-an-ethical-business-is-more-likely-to-produce-a-success-story.html
