Corporate Ethics, Personal Ethics: One in the Same?

Madden-Hallett, Helen, (2009). Corporate ethics, personal ethics: One in the same? Identifying ethical captains of industry. Journal of Business Systems, Governance and Ethics, Vol. 4, No. 3, Oct. 2009. Retrieved April 23, 2010 from: http://www.jbsge.vu.edu.au/issues/current.html

This article was written by Helen Madden-Hallett from Victoria University in Melbourne, Australia. It explores the relationship between the ethical standing of a corporation and that of its employees within the framework of eight dynamics. These dynamics are listed as: one’s self, family, groups of individuals, Mankind, all living things, the physical universe, energy, space and time, the spiritual realm, and the Supreme Being. Ethics in this paper is defined as “behavior which seeks the best level of survival, or the greatest benefits to the greatest number of dynamics and conversely, unethical behavior is that which offers the poorest solution and bring the greatest harm to the most number of dynamics”. As quoted in the paper, consumers are no longer satisfied with corporations believing they have fulfilled their fiduciary duty by doing no harm; consumers’ expectations are that corporations should proactively seek to do good deeds and to contribute to society. There is a positive side of ethical behavior for the business also. The author quotes a study that shows a correlation between adherence to ethical principles and increased profits. Employee’s ethical behavior is highly influenced by that of their superior’s. The author states that ethical philosophies come to naught if managers do not exhibit ethical behavior in the workplace. This article discusses a very important subject that managers should spend a lot of time on. Not only is ethical behavior the right thing to do, but there are many studies that show that companies that practice good ethical behavior are more successful also.