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The recent business ethics and scandals involving some of the nation’s largest businesses have cast grave doubts upon the credibility of those who lead such businesses. They also have led to bankruptcies and massive layoffs. In this business MBA research paper, we will discuss why business ethics are critical, and how they can prevent scandals or corrupt business practices.
It has been said that “business ethics” is an oxymoron. And to be sure, the WorldCom, Enron and other business failures involving shocking and corrupt business practices would seem to bear this out. Yet, despite the spate of national media publicity concerning business practices that are not only unethical, but also possibly criminal in nature, most companies remain firmly committed to practicing good ethics, to the benefit of customers, employees, and the company itself.
A study done in the late 1990s demonstrated that companies committed to sound ethical practices do better than those that do not. Further, companies have a much greater representation among the top 100 financial performers than companies that engage in questionable ethical dealings.
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