Ethics in Corporate America
Ethics in Corporate America is
on the Decline
 Marist College Institute for Public Opinion survey
 76% of Americans believed Corporate America’s
moral compass is pointed in the wrong direction.
 58% of business leaders agreed
Ethical Standards that are
Declining
 Overall honesty and ethical conduct are becoming
scarce:
 52% Americans
 24% Business leaders
 Lack of leadership in a time of crisis:
 58% Americans
 19% Business leaders
Ethical Standards
Greece vs. America
 Used false information to
get into the European
Union
 Misallocated funds from
bail-out, now need more
money
 Manipulated the European
Union’s system
 Ford Motor Company
 Workplace safety/human
rights
 Small environmental
impact
 Acts in best interest of the
company
 Concerned with impact of
the rest of the world
The P.I.I.G.S
Insecurity of Greek Market
Deficit of GDP and Debt
Ford: A Family Tradition
 “There is a most intimate
connection between decency
and good business.”
 “I believe the distinction
between a good company
and a great company is this:
a good company delivers
excellent products and
services; a great one delivers
excellent products and
services and strives to make
the world a better place.”
Ethical dilemma: The Ford Pinto
 Ford did a cost-benefit
analysis and decided that
the cost of fixing all Pintos
on the road (about $11
each) would result in
higher overall costs
compared to paying
damages to people injured
or killed in car fires, which
it estimated to be about
$270,000 each
Built Ford Tough
 Adopted a code guarantees
that the directors act in the
best interest of the
company, and its
customers.
 Has a Model “U” concept
car that is made completely
of biomaterials
Maintaining Ethical Practices
are Crucial to Effective
Businesses
 Higher employee retention rate
 Promotion from within
 Repeat business due to a more skilled staff
 Microsoft becoming more ethical
 Facebook and Apple as unethical companies
Ethics from the Siren’s
Eyes
 Starbucks
 From the farm to the store,
ethical practices are
maintained
 Exhibits social
responsibility
 Exhibits environmental
responsibility
 Keeping Americans
employed in a time of crisis
Ethical Companies are
Thriving
 Gap
 PepsiCo
 eBay
 General Mills
 Patagonia
 Waste Management
 Microsoft
 T-Mobile USA
 Xerox
 UPS
 Caterpillar
 Target
Conclusion
 There are many examples of decent ethical behavior
in Corporate America
 76% of Americans have a skewed perception of
business’s moral compass