Significance of ethics-based decision making on business environment

Journal
Companies use a code of ethics to preserve a certain level of ethics within their organization. Think about a company that you believe constantly displays ethical behavior. If you had to pull from their code of ethics to improve a different company's code, what types of items would you want to replicate and why?
In Unit VII, bribery and concealing evidence are situations that often confront companies. For instance, in 2002, the Justice Department found Arthur Anderson, a well-known accounting firm, guilty of obstruction of justice for shredding audit documents of its client, Enron. The motivation here was related to distancing its association with the Enron scandal. Arthur Anderson officials decided that protecting company interests were more important than ethical and legal public reporting. Arthur Anderson met its demise as a result of this incident. Interestingly, the Enron scandal is a case where both companies had sophisticated corporate cultures and detailed standards that should have prevented this type of occurrence. In spite of this example, the government puts laws and regulations in place to protect the ethical stance of companies.
·Antitrust and competition laws restrict employees from taking unfair advantage of customers, suppliers, or competitors through manipulation.
·Environmental laws ensure that companies conduct their business in an environmentally sound fashion. Industry-specific laws protect the specific interests of each industry. For instance, the medical industry would regulate pharmaceutical companies with an emphasis on the manufacturing and distribution of drugs.
·Employment and labor laws generate another area in which government asks companies to treat their employees with respect. These laws involve issues related to working hours, compensation, human rights, working conditions, freedom from harassment or discrimination, and equal advancement opportunities.
·Legislation also mandates adherence to corruption violations, such as bribery and other acts of deception.
As you can see from the above list, government develops laws and guidelines that are necessary for the betterment and the protection of our community.
One purpose of this particular lesson is for you to experience the development of a list of ethical guidelines that you think is important in the operation of your fictitious company.
Unit Lesson
This unit recognizes the intersection of ethics, legal regulations, and laws through the famous The Andy Griffith Show television series, which aired from 1960-1968 in the fictional town of Mayberry, North Carolina. Andy Griffith is a widowed sheriff of this small town, and he continuously protects his well-meaning deputy, Barney Fife. A series of ethical situations develops around the somewhat dim-witted but well-meaning Barney that come close to breaking the law.
In one episode, Barney withdraws his entire nest-egg and buys his first car, unknowingly sold to him by a crook. Through a series of adventures, Barney realizes the crook sold him a lemon and ultimately confronts the crook. The story concludes with the crook offering Barney a highly attractive bribe to not impose legal action. Barney waivers in his response as he considers the personal advantages associated with accepting this bribe.
Bribery and concealing evidence are situations that often confront companies. For instance, in 2002, the justice department found Arthur Anderson, a well-known accounting firm, guilty of obstruction of justice for shredding audit documents of its client, Enron. The motivation here was related to distancing its association with the Enron scandal. Arthur Anderson officials decided that protecting company interests was more important than ethical and legal public reporting. Arthur Anderson met its demise as a result of this incident. Interestingly, the Enron scandal is a case where both companies had sophisticated corporate cultures and detailed standards that should have prevented this type of occurrence.
In spite of this example, government puts laws and regulations into place to protect the ethical stance of companies.
 Antitrust and competition laws restrict employees from taking unfair advantage of customers, suppliers, or competitors through manipulation.
 Environmental laws ensure that companies conduct their business in an environmentally sound fashion. Industry-specific laws protect the specific interests of each industry. For instance, the medical industry would regulate pharmaceutical companies with an emUpNhITasxisSoTnUtDheYmGaUnIDufEacturing
and distribution of drugs.
 Employment and labor laws generate another area in which government asks companies to treat their
employees with respect. These laws involve issues related to working hours, compensation, human rights, working conditions, freedom from harassment or discrimination, and equal advancement opportunities.
 Legislation also mandates adherence to corruption violations, such as bribery and other acts of deception.
Andy Griffith appreciated the relationship between ethical behavior and the law, and he continuously influenced Barney to realize this as well.
In 1982, Johnson & Johnson experienced this relationship through the Tylenol incident. Seven people died after taking Tylenol capsules laced with cyanide by a Chicago man who was seeking $1 million in extortion money from the city. After this incident, Tylenol officials needed to decide whether they would take the FBI’s recommendation to take no action (FBI stated they considered this issue a remote incident). Alternatively, the FBI could have required the company to withdraw the drug from the market, which would have inevitably cost the company millions of dollars.
Tylenol decided to take it off the market, which ultimately cost the company more than $150 million. Unfortunately, the ethical position, in many cases, is also the most costly alternative. Contrary to the results of the Arthur Anderson incident, Tylenol is still in business today and has returned to prominence as one of the leaders in the pharmaceutical market. Additionally, Johnson & Johnson regained its brand identity as consumers regard it as one of the most ethical companies in history.