Financial executives insist that there should be no separation between an indivi

Question

Financial executives insist that there should be no separation between an individual's personal ethics and his or her business ethics. "It's a jungle out there" and "business is business" should not be excuses for engaging in unethical behavior. Many firms have ethics codes which are based on economically rational concepts such as integrity and trustworthiness, which guide the decision maker in attempting to increase shareholder wealth. Of course, some employees sometimes choose to not comply with their firm's ethics code. How do ethics codes apply to project selection and capital budgeting? What are the potential risks to a company of unethical behaviors by employees? What are potential risks to the public and to stakeholders? Please explain how Saint Leo’s core value of integrity is reflected in your answer.

Explanation / Answer

Ethics Codes help companies to keep a standardized way to take decision else the decision can be biased.

Unethcial behaviors can damage the reputation od the company. Also if companies do not take strong measures against these then these can have negative impact on others.

The public or other stakeholders' interest can be subdued by personal interest. The impact of unethical behavior can have a long term effect on any company's operation.

Saint Leo's core values are Excellence, Community, Respect, Personal Development, Responsible Stewardship and Integrity. Unethical behavior does not comply with any of it.

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