BUSN 70 Lecture Notes - Lecture 47: Securities Fraud, Accounting Scandals, Corporate Law
13 Mar 2021
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Document Summary
Stakeholders: customers, suppliers, competitors, government regulators, interest groups, and the public. An organization"s culture influences its ethical behavior. Business ethics = principles and standards that determine acceptable conduct in business. In business, trust is the glue that holds the customer relationship together. The recent global financial crisis took a toll on consumer trust of financial services companies. Trust in banks is lower than in other industries, except for media and government. Managers must show a strong commitment to ethics and compliance. This tone from the top requires top managers to acknowledge their own role in supporting ethics and compliance. Create strong relationships with ethics and compliance department. Clearly communicate expectations for ethical behavior to all employees. Educate managers/supervisors about the company"s ethics policies. Train managers and employees on what to do if an ethics crisis occurs. A business"s obligation to maximize its positive impact and minimize its negative impact on society.
