The Consequences of Bad Business Decisions

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In today's world business is very competitive. To compete with other company's executives have turned to corrupt practices. Once respected businesses like Enron, WorldCom, and Arthur Anderson have been found deceiving there customers, stockholders, and employees. C.E.O.'s try to achieve the American dream and pursue capitalism to its fullest potential. In doing so, business leaders have lost their values and ethics, and make bad business decisions. The downfalls of a company are the consequence of C.E.O.'s bad decisions. According to Marjaana Kopperi "business ethics, can simply be defined in terms of social and ecological responsibility of business. According to this definition, business ethics requires that business decisions should not be made exclusively from the narrow, economical perspective, but also the social and ecological concerns should be taken into account. This means that people who work in the business life should consider how their economical decisions affect other people, environment or the society on the whole. In other words, it means that the interests of all the relevant parties, or "stakeholders" are acknowledged and weighed. She also believes that "The "stakeholder" approach to business is especially made known by Kenneth Goodpaster who defines the term as follows: "A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objectives." As examples of such stakeholder groups Goodpaster mentions employees, suppliers, customers, competitors, governments and communities." Thousands of employees from companies like Enron, WorldCom, and Arthur Anderson have lost their jobs and retirement funds due to the bad decis... ... middle of paper ... ...y punished by the law. When scandals like Enron and WorldCom are brought to the public investors become cautious of the American industry. They become less likely to want to invest in American business. The problem is that too me executives think about themselves when their companies began to do badly. Their greed takes over and they don't think about the employees they hurt and the negative effect their unethical practice is going to have on the industry. Their irresponsibility, greed, and selfishness have cost investors billions of dollars. Hopefully business Executives will stop thinking about themselves and their own well being. And start thinking about the lives they will be affecting. With the results of the Enron and WorldCom scandal, maybe other executives will think twice about altering they are accounting books or diverting funds from their company.

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