Ethics in Business (Mgt521

The set of moral principles relating to human conduct that will make one to be seen as honorable, decent, upright, honest, proper, just, good, virtuous or righteous is regard as ethics. As individuals are judged by their ethical conduct by the society so also are businesses. The failure to adhere to these ethical behavior by businesses has made government to set a standard of ethical conduct, the most prominent is the Sarbane-Oxley legislation of 2002. The events of Enron and Worldcom also raised the public awareness of how business present their financial standing with all honesty. What effect does all the government intervention through regulation have on businesses?
Some business are more exposed to public scrutiny and their actions readily available to be criticized, for example, businesses that uses face to face contact to in selling of products or services are require d to show high level of ethical practice, compare to others that have production assembly somewhere, but the products is all the consumer sees. The purchase of life insurance readily come to mind when face to face contact is needed to market or sell products. A salesperson for life insurance should be decent and honest in presenting the facts about the policy, an unethical sales representative tend to use all means to sell these policy without regard for the consumer. Most sales representatives convince those that already have life insurance policy to cancel their policy for a new one they are marketing, consumer are made to believe they are purchasing retirement product. All these unethical way of doing business has been dogging the life insurance company for sometime. Public trust has eroded because sales representatives used every dishonest, improper method to sell their product.
Ethical behavior in business is important in order to survive, business have to be conducted in accordance with high standard of honesty...