Integrating Ethics in Business Strategy for Success

“Talk about ethics, values, integrity and social responsibility is not only becoming acceptable in the business community, it’s practically required” (Joyner, 2002, p.298). Now that ethics has gained a greater recognition in the world of business, companies are more interested in the implementation of ethical standards within its organizational structure. A review of the literature suggests that ethics and social responsibility should be present at all levels of businesses. In this sense, the effective integration of ethical standards into the business strategy becomes vital to achieve organizational objectives. Ferrell et al. (2013) defines business ethics as, “principles, values, and standards that guide behavior.” (p.7). Taking into consideration

After Enron’s corporate unlawful activity, and the misconduct of some other companies, such as WorldCom and Halliburton, the government and the public sector started to look for fresh methods to support ethical behavior. In light of this, the Congress of the United States passed the Sarbanes-Oxley Act in 2002 to address ethical and legal risks (Ferrell, Fraedrich, Ferrell, 2013, p.14). Given the ethical lapses manifested over the past two decades, restoring trust in the free-market system and in leaders has become a challenge. Government involvements have also been helpful in regulating unethical practices. Studies have revealed that society at large consider that good ethics is good business. The capitalist system has put a lot of faith in implementing high ethical standards, including respect, integrity, honesty and citizenship. As corporate ethics have become a growing concern for society, it has become clear that enhancing social responsibility, enforcing an ethical culture, and making ethical decisions, can not only lead to business success, but also benefit our economic system in the long

The more important an issue is to an individual, the greater its intensity becomes. Consequently, the ethical strength is the degree of relevance an issue has to a person or firm. Different individuals have various values, perceptions, needs, beliefs, and levels of resilience that influence their decisions and actions. Employees with authoritative posts in business determine what and how an organization considers ethical intensity. In modern days, senior organization officials risk jail sentences for unethical actions of their junior colleagues (Ferrell, et al., 2013). Ethical issue intensity entails an individual’s awareness of an aspect and understanding whether or not an issue is unethical. Naturally, people’s cognitive state influences their decisions and their