establishes a healthy competition among companies.
Any actions can only be evaluated as right if it is in accordance with the moral rules and brings no be consequences. Trust among the workers is important,Fair competition among firms,Managementshould equalize the rewards and works of each stakeholder which actually suggests that the duties and commitments to the people outside the firm comes under the social responsibility of firm.BLIND SPOTS:THE ROOTS OF UNETHICAL BEHAVIOR AT WORKWhen it comes to judge own ethicality, there people overestimate themselves may be because of ethical gaps.Main reason is decision makers limit analysis to themselves and don’t share it with others,so communication can help in reforming the informal Culture of the organization. Moreover, people acquiring higher jobs in organization manipulate the customers and don’t bother about the ethics thus making unsafe environment full of cheating and profit based.
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FLAVORS OF FRAUDIt explicit the different strategies usedby executives in scandalEnron Strategy: pretended to have highly profitable business to sell the shares at inflated prices.Dynegy Strategy: convinced investors to invest more in company promising that the sales would be profitable in future and pretended to buy stocks just to sell shares at inflated prices like Enron.Adelphia Strategy: asked investors to focus on contracts volumerather than profitability so that analysts would give high marks and then can sell shares at inflated prices.WorldCom Strategy: classified current expenses as capital expenditure to make investors feel that money was burrowed to purchase new equipments.
It happened in every scandal that every person was indulged in it for their own benefits otherwise it was not something to be missed out.HOW ETHICAL YOU AREIt refers to the unconscious beliefs that lead to involuntary unethical decisions. For instance, similar to me bias that favors people of one’s religion,country or alma mater and also the clash of interests. All these are unfair to other people working in the organization and as it is unethical so it needs to be avoided to maintain a good culture at workplace.THE AGE OF THE INAUTHENTIC EXECUTIVECEOs create aninauthentic lifestyle by doing things that feed the expectationsbeast and ignore the healthy relationships with customers, employees and long-term investors. Inauthentic behavior is not unavoidable by eliminating the use of stock-based compensation as an incentive and should be prevented from selling any stock but even this approach needs to be replaced as it also brought huge corporate scandals.