First, there are laws that guide business leaders. Breaking laws can lead to arrest and imprisonment. For example, one coPSDQ·VVDOHVPDQDJHUGHFLGHGWRGLVFRXQWSULFHVRIRXWGDWHGIUXLW,QWKHHQG some children who ate the fruit got very sick with hepatitis A. The disease was traced to the FRPSDQ·VRXWGDWHGIUXLW6HYHUDORIWKHFRPSDQ·VOHDGHUVZHUHLQGLFWHGRQFULPLQDOFKDUJHV Today, the company no longer exists.
Individual Ethics
Laws are not always enough to assure ethical behaviors. Individual leaders and their decision- making behaviors (ethical or unethical) set examples for employees. In the United States, anonymous manager surveys show that 30% of managers admit that they have sent in inaccurate reports. Clearly, there is a need to think about and work on developing ethical decision making skills for managers.
On-the-Job Ethical Conflicts
Four ethical conflicts confront leaders in business:
1. Conflict of Interest - A leader achieves personal gain from a decision he/she makes)
2. Loyalty versus truth - A leader must decide between loyalty to the company and truthfulness in business relationships
3. Honesty and integrity ² A leader must decide if he/she will be honest or lie;; if he/she will take responsibility for decisions and actions or blame someone else?
4. Whistleblowing ² Does the leader tell others (media or government authorities) about the unethical behavior of the company or institution?
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