Benefits of Incorporating Ethics and Values in a Company

In the wake of the Madoff Ponzi schemes, the SEC has stepped up investment regulation and fraud detection measures. Additionally, the Sarbanes-Oxley Act of 2002 (SOX) was passed as direct result of the Enron and WorldCom ethic violations. SOX has been characterized as "the most far reaching reforms of American business practices since the time of Franklin Delano Roosevelt” mandated a number of changes to improve financial disclosures from corporations and prevent accounting fraud. SOX also created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession. Had the PCAOB been in place perhaps Arthur Anderson would not have been so quick to turn a blind eye to Enron’s accounting irregulars.

Benefits of Incorporating Ethics and Values

Ethics is fast becoming an essential aspect of business in the modern world leading to a positive public opinion as well as investment, partnerships, employee retention, assets protection, productivity & team work.

As discussed earlier, public opinion can make or break an organization. To grow, companies either need to sell enough products and services to realize a profit or get investors. Both requires a positive public image. A company builds their image by acting in accordance with their values, and from demonstrating appropriate values. Documenting, implementing and publicizing the company's values and/or mission statement allows the public, clients, investors, and employees to understand what the company stands for, that it takes business ethics seriously. Companies with strong reputations are also companies that tend to attract more investments.

Creating partnerships are of great importance to businesses. A business can be made or broken on j...

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...trate on a daily basis. The percentage of workers who said they observed misconduct on the job fell to an all-time low of 41 percent in 2013, down from 45 percent two years ago and a record high of 55 percent six years ago. The decrease in misconduct may reflect workers’ tendency to take fewer risks during difficult economic times. Good corporate governance means being transparent with and responsive to stockholders while managing the company for long-term success. It is at its core a balancing act that starts at the top by insisting every facet of the organization be ran with the upmost integrity. When uncompromising integrity, honesty, and fairness are at the heart of an organization then ethics are of the upmost importance. According to Senator Alan K. Simpson, "If you have integrity, nothing else matters. If you don't have integrity, nothing else matters."