Stephen Covey's The 7 Habits Of Highly Effective People

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The author of The 7 Habits of Highly Effective People, Stephen Covey stated. "Moral authority comes from following universal and timeless principles like honesty, integrity, treating people with respect." An organization possessing all three components will generate a strong ethical culture. A high-principled and explicit value code will guide the company to make good decisions, command loyalty and gain respect. The structure is the first step to creating a strong ethical culture. It is imperative to set hard written guidelines to help managers make good decisions by spelling out the companies ethical and legal positions. In an article "You Say Morals, I say ethics – what 's the difference", Authors Professor Paul Walker, Conjoint Associate…show more content…
Volkswagen is a recent example of a company behaving badly, recently admitting to misleading the Environmental Protection Agency 's emission inspectors by placing deceptive software in millions of cars, to appear greener than they were. This misjudgment in ethical behavior cost the company over $20 Billion; investors backed out anticipating associated costs, and Volkswagen faced customer reparation, fines, and legal fees. Not only was Volkswagen hit in the pocket book but the companies reputation suffered a severe blow. Toshiba supported unethical norms, conceding its practice was to overstate earnings. An independent investigation discovered "Toshiba had a corporate culture in which management decisions could not be challenged" and "Employees were pressured into inappropriate accounting by postponing loss reports or moving certain costs into later years." Not only did Toshiba tolerate unethical behavior they promoted it. The CEO and President Hisao resigned, but Toshiba has a long path to restore its reputation and gain back investor
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