Corporate Business Ethics Erinn Woods and Amy Wan June 21, 2015 Why is Business Ethics important? Everyone in this class is striving to become a part of some kind of corporation whether it be a large corporation with a lot of different branches or a smaller corporation with just a single boss. Either way, it is important to all of us to be knowledgeable about ethics in the workplace and how it affects us individually. Learning more about ethics in the corporate world is needed because unethical corporate behavior has been worsening as of lately. The 2011 National Business Ethics Survey from the Ethics Resource Center shows that 45 percent of employees have witnessed ethical misconduct at work, and 13 percent say that they are feeling pressure to bend the rules or even break the law. This percentage has also risen five percent since 2010 (“Keeping Your Nose Clean: A Look at Ethics in the Workplace”). Unethical behavior by your coworkers or boss is not acceptable and it is important for everyone to be informed about noticing this type of behavior. Everyone should be thinking about what it means and how to put a stop to it since there is a lot of helpful advice and programs that should be known by anyone entering into the workforce. Our Objective As stated by the Philadelphia Business Journal, the percentage of employees witnessing unethical behavior in the workplace are based on someone who lied to a supervisor or handed in a false expense report not extreme cases such as fraud. We want to know how this type of unethical behavior is punished and if it is taken lightly. The Philadelphia Business Journal also goes into depth about the type of unethical behavior occurring. One being abusive behavior, stating that “too many workplaces are filled with managers and supervisors who use their position and power to mistreat or disrespect others. Unfortunately, unless the situation you're in involves race, gender or ethnic origin, there is often no legal protection against abusive behavior in the workplace,” (The Philadelphia Business Journal, “The 5 Most Common Unethical Behaviors in the Workplace”). This being an issue in many workplaces across the nation, shows that we need to put tougher regulations regarding being mistreated or disrespected in the workplace. So we want find out what type of regulations many top corporations put in place for the employees and if there is any kind of ethics program employees must complete to work there. Since many of us are striving to obtain full-time jobs at some point in our lives, it is important to know about the facts regarding unethical corporate behavior and what kind of laws surround it. Also, how all of us can do our part to keep our workplaces as ethically sound as possible. Our Research Method We began researching about corporate ethics by looking further into the statistics about the occurrence of unethical behavior is in the workplace and the percentages of those that fit in each category of unethical behavior from minor to serious offenses. A lot of this research was done at Philadelphia Business Journal and other sources that explained what corporate ethics means to someone in the workforce. Moving on from the information found there, we researched large corporations and what kind of ethics programs they have in place. We based the research on what kind of steps these corporations take to prevent ethical misconduct in the workplace. This made us research further into what kind of punishments they put on employees who do break these ethical regulations and if these situations are handled seriously for employees who are high ranking in the corporation. Since history shows that people in those kind of positions can get away with more misconduct than employees lower down. What We Discovered Amy’s father is in electric engineering and works in a public company called State Grid. The company really did something unique to decrease the unethical corporate behavior from occurring, this was learned from a short interview to with Amy’s father. State Grid is a huge company that controls power supply for the whole country of China and this company is controlled by the government. The unethical corporate behavior happened frequently in public companies because there is no competitor for them, so the government decided to organize a meeting to find the solution. In the end of 2008, the government found a way to decrease unethical corporate behavior in public company. The managers or leaders in public company cannot stay in the same position for one year, which works since State Grid has a lot of branches of office in different cities. Amy’s home city has at least 8 branch offices and her father changed his job to different branch offices every year from 2008 to 2011. Her uncle who is also an employee at State Grid changed jobs to another city’s branch office near Amy’s home city. Her father said this solution decreased the unethical corporate behavior but also decreased the work efficiency because the manager needed time to know what they needed to do in the different branch office. Then the government changed the time to three years, Amy’s father said the government still pays attention to see if this one will work better. What These Results Mean According to the research and interview, we can see unethical corporate behavior is happening normally in our life and keeps increasing. The US already had ethics regulations issued by the U.S. Office of Government Ethics, but even these kind of laws do not stop some unethical behavior. The high benefit will still tempt people to do unethical things; according to the Fleischman (2015) “Yet, evidence suggests that the development of corporate ethical values (CEVs) can mitigate concerns about unethical conduct, suggesting that these principles might be used to reduce workplace bullying and enhance job satisfaction.” Recently this year, the Chinese government started to pay more attention to this problem and tried to find the solution. The US government also pays attention to this problem but we think it’s more difficult to find the solution for private companies. Even a lot of news are reporting unethical corporate behavior in different companies every year but no one has really found an efficient way to solve this problem; we all know we need to build ethical value in workplace, but no one knows how to begin. These results show us that we need to be exploring new ways to reduce the unethical behavior in the workplace, especially in private companies. To everyone entering into the corporate world in a few years, needs to put thought into which company to work for based on the facts about ethics. More significantly, the way the company focuses on business ethics and how they are working to limit the ethical misconduct in their company, so we can make informed decisions on which company to work for. Our Recommendation We think the government and some big companies need to pay more attention to this problem because many people are facing this situation of ethical misconduct. In the beginning, the data of 2011 National Business Ethics Survey from the Ethics Resource Center shows that “45 percent of employees have witnessed ethical misconduct at work, and 13 percent say that they are feeling pressure to bend the rules or even break the law,” (“Keeping Your Nose Clean: A Look at Ethics in the Workplace”). The Chinese government is giving a good solution that maybe can also work for private companies and companies here in the United States. I think maybe universities also can add some course to talk about the ethical value in the workplace and how to use the law to protect ourselves or stop other people if we find unethical behavior in the workplace. Sources The 5 most common unethical behaviors in the workplace - Philadelphia Business Journal. (n.d.). Retrieved June 3, 2015. Gale, S. (2012, September 6). Keeping Your Nose Clean: A Look at Ethics in the Workplace. Valentine, S., Fleischman, G., & Godkin, L. (2015). Rogues in the ranks of selling organizations: using corporate ethics to manage workplace bullying and job satisfaction. Journal Of Personal Selling & Sales Management, 35(2), 143-163. doi:10.1080/08853134.2015.1010542