Business Ethics in Our Society

The ethics and values ​​have been and will be extremely important in the business world. These qualities necessarily are reaffirmed with earnestness at present and in the future.

As everyone knows one of the main causes of the financial crisis facing the United States has as its main element the failure or almost absent ethic from some operators in the financial industry. This lack of awareness has created (among many calamities) the bankruptcy of numerous banks and in general the disappearance of a large number of companies. Consequently resulting in unemployment to levels that border on 7.9% (about 13 million unemployed). Is amazing how the lack of scruples of the big financial players (the guys on Wall Street) plus the apathy and lack of foresight of regulators combined with overconfidence or lack of information from the public, they could be the dominant factors  the worst economic crisis since the Great Depression of the 30s.

The concepts of ethics and values ​​need to be worked out, maintained and reinforced in the business world. And should not be forgotten under any circumstances. Because if forgotten likely the organization (whatever its size and resources) will have great difficulty not just with the authorities but with its customers, shareholders, employees and the general public.

When one has the opportunity to review and analyze the information as contained in Ethics Resource Center (www.ethics.org) one can examine in detail and depth of ethical codes that should be used by companies wishing to work taking into consideration values ​​just cited. To make a more detailed analysis in the first part of this paper and pointing out the strong recently cited is imperative to consider the following: Why is it important for a company to have a code of conduct? What are the most common points in the code of ethics? and finally how we determine the values ​​of a company?

As a second point in this paper I will review in detail a company that was chosen at random from the Fortune 500. The institution selected for this study was Bank of America. The idea is to check whether there is correlation between corporate values ​​and code of ethics of the bank.

 As a second point in this paper I will review in detail a company that was chosen at random from the Fortune 500. The institution selected for this study was Bank of America. The idea is to check whether there is correlation between corporate values ​​and code of ethics of the bank vs. the questions posed in the previous paragraph. In response to the first question we start from the definition of: Driscoll, Dawn-Marie and W. Michael Hoffman (2000) "... a code very well written and thoughtful serves as an important vehicle of communication that reflects the pact of an organization has done to defend their most important values ​​and deals with issues such as its commitment to employees, their standards for doing business and their relationship with the community.”(P77).

To complement the above mentioned may be added that a code of conduct is the basic rule that establishes the central guideline for relations between employees (regardless of their level), and its environment. At the same time covers all aspects linked decision making. And how are you making must be framed within the values ​​and principles of the organization.

Another important aspect of the code of conduct is the commitment of all members of the organization to meet the standards that the organization seeks. And what are the routes or roads to be followed by the employees to meet these goals. As a second aspect is the query of what would be the most common points in the code of ethics? In this regard it highlighted established by Ethics Resource center on its website (2010). The content of the code (rules) may vary substantially between organizations and where this established company.

 Among the basic elements applied to the code of business ethics are: No harassment, whether the diversity and nondiscrimination. Regard to all privacy and confidentiality clause (At all levels). And this includes employees, customers, management and shareholders. Clarity of the information (should be eliminated all kinds of manipulation). Prevent and control all types of conflict of interest (in this respect the rules must be very clear about the issue of gifts and gratuities). Negotiation of contracts (business parameters must be transparent and without any personal interest). And as a last point would be a commitment to community and the environment.

Order to establish answer to the question related to how to define the values ​​of the institution?  Is important to start with the fundamental values ​​that will govern the company, and in this sense it is essential to begin with basic concepts such as honesty, responsibility, fairly and respectfully. Logically these provisions are applicable to employees whatever level of the organizational structure. And that covers: Customers, suppliers, shareholders and the general public.

Once these patterns of behavior and action within the firm. It must disclose in a clear and accurate to everyone involved in the company (this information is not enough to be placed on the boards of the company). It is imperative to be consistent with the application of these rules. And apply when the situation requires it.

Define the values ​​of a company must be a fundamental task at the same time an act of extreme responsibility and honesty from the people who will lead and manage the firm because otherwise failure will be the next event to occur.

The elaboration and subsequent implementation of the principles must be an everyday work by everyone involved. And above all things have to make an effort to involved and motivated employees to follow these fundamentals (personally I think the key tool is the example). If the organization understands and agrees with the codes and principles of the company probably the result will be a successful formula.

When you look at Bank of America and especially its ethics code and compared with the parameters of Ethics Resource Center (ERC) certainly there are similarities in the basic aspects.

But obviously this company (the bank) has a feature that makes it very interesting. Because as bank needs to be predisposed to work with factors such as: Financial risk, strict regulations imposed by the financial authorities and the real possibility of confronting financial affairs.

And with this feature it is logical to think that the code of ethics of this institution has elements that make it very particular by the nature of the business in itself. Another element that is well highlighted between the bank code of ethics and guidelines for Ethics Resource Center (ERC) is that the bank will take very seriously any complaint made to the hot line code violations. And if it should be a rule violation and if in fact it is verifiable, the company reserves the right to terminate the employee and even take legal action against the offender.

As part of the conclusions Bank of America certainly covers a good proportion of the approaches developed by the Ethics Resource Center (ERC). And as discussed in previous paragraphs this institution (Bank of America) for their features has aspects that make their particular ethical code in many respects.

Another important characteristic is that they (Bank of America) put tremendous emphasis associated with tips and gifts to can receive employees. Not opposed in principle but this situation is very well regulated by the bank. If a customer decides to make a gift or present to any employee or associate itself immediately notify the immediate supervisor. If the employee fails to notify his intention of receiving the gift may be considered to receive a punishment or reprimand for not warns the intention of receiving the present.

Is important for companies (no matter their size) be alert to their codes of ethics are fully implemented. To the extent that this rule (corporate values ethical codes) are not properly applied and especially to the persons responsible for its implementation does not give the respective instance likely will repeat cases like Enron, Lehman Brothers, Goldman Sacks and Bear Stearns. And the repetition of situations such as those experienced in 2007 (until today) with the fall of our economy because of the low or near zero ethics of some bankers is simply unacceptable. And for this reason it is important that the public be vigilant and require the authorities and regulators greater supervision and control to prevent this from occur again.

Another aspect in the conclusion is in all business schools in the nation are strongly emphasizing the theme of business ethics. Since this way is prevented and especially establish awareness of the situation.