Encouraging Ethical Behavior

Most authorities agree that there is room forcode of ethics is a written guide to acceptable and
improvement in business ethics. One of the mostethical behavior that outlines uniform policies,
problematic questions raised in relation to businessstandards and punishments for violations. Because
ethics is whether or not businesses can becomeemployees know what is expected of them and
more ethical in the real world. The majority opinion onwhat will happen if they violate the rules, a code of
this issue suggests that government, tradeethics goes a long way towards encouraging ethical
associations, and individual firms can indeed establishbehavior. However, codes cannot possibly cover
acceptable levels of ethical behavior.every situation. Companies must also create an
The government can do so by legislating moreenvironment in which employees recognize the
stringent regulations. But, rules require enforcementimportance of complying with the written code.
and when in many cases there is evidence of lack ofManagers must provide direction by fostering
enforcement even the ethical businessperson willcommunication, actively modeling and encouraging
tend to "slip something by" without getting caught.ethical decision making, apart from investing in training
Increased regulation may help, but it surely cannotemployees to make ethical decisions.
solve the entire business ethics problems.Sometimes, even employees who want to act
Trade associations can and often do provide ethicalethically may find it difficult to do so. Unethical
guidelines for their members. These organizationspractices can become ingrained in an organization.
within particular industries are in an excellent positionEmployees with high personal ethics may then take a
to exert pressures on members that stoop tocontroversial step called "whistle blowing." Whistle
questionable business practices. However,blowing is informing the press or government officials
enforcement and authority vary from association toabout unethical practices in an organization. Whistle
association. Moreover, exactly because tradeblowing could have averted disaster and prevented
associations exist for the benefit of their members,needless deaths in the Challenger space shuttle
harsh measures may be self-defeating.disaster, for example. How could employees have
Employees can more easily determine and adoptknown about life-threatening problems and let them
acceptable behavior when companies provide thempass? Whistle blowing on the other hand, can have
with a "code of ethics." Such codes are perhaps theserious repercussions for employees; those who
most effective way to encourage ethical behavior. Amake waves sometimes lose their jobs.