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In an article on Nov. 13, 2000, in the Financial Times' Mastering Management series, Wharton legal studies professor Thomas Donaldson looks at the increase in corporate ethics programs throughout the world. Which are the most effective? Do they indeed make a company ethical? Do they improve return on investment and/or customer satisfaction? And what are the consequences of not having a program?

CommerceNet, a nonprofit booster of e-business, won respect throughout Silicon Valley because it was an honest broker. So how did a few of the group's executives make millions for themselves? This article explains how and also provides an interesting look at an important historical presence in the development of e-commerce.

Thoughtful managers sometimes face business problems that raise difficult questions. Sometimes these questions are matters of right versus right, not right versus wrong. There are three basic types of right-versus-right problems: those that raise questions about personal integrity and moral identity; conflicts between responsibilities for others and important personal values; and, perhaps the most challenging, those involving responsibilities that a company shares with other groups in society. This article takes a look at all three of these types through the lens of Edouard Sakiz, Chairman of Paris-based Roussel-Uclaf, developer of the controversial abortion pill RU 486.

Today, in the second era of global capitalism, there is a sharper focus on the social and environmental consequences of the operations of large corporations. Unlike the first era when the backlash against big corporations ushered in the development of governmental regulatory bodies, now a kind of ragtag group is springing up to influence corporate behaviour. But despite the positive successes of some crusades, Professor Ethan Kapstein explains that the ethical pursuit is still raising some red flags.

Certified public accountants, in many people's eyes, serve as cops on the Wall Street beat, assuring the accuracy of the financial results reported by U.S. companies. But key components of the audit process - the independence and objectivity of auditors - may be eroding because of the huge fees paid by audit clients for non-audit services.

A noted author explains why an ethical business is a profitable business.

Also, take the 'How Ethical Are You?' survey and see how you compare to others. Find it at:
http://www.mbajungle.com/monthlysurvey/ethicssurvey.cfm

Influential voices are suggesting that far from whistleblowing - informing on organizations that commit illegal or unethical acts, provide poor value for money, or endanger health and safety - being subversive and undesirable, it may sometimes deserve high praise. The increasing interest in business ethics has gone hand-in-glove with the interest in whistleblowing.

Consider the ethical debate of cyber responsibility - who carries the weight in an unaccountable environment? A French court asked the question in 2000, when Nazi memorabilia was being auctioned on Yahoo!'s Internet site. Professor Marc Le Menstrel, Mark Hunter and Professor Henri-Claude de Bettignies delineate the legal, technical, philosophical, and managerial perspectives as they examine how firms handle the sometimes difficult social consequences of their activities.

What do corporations do when their products may be detrimental to society as a whole? In this recent working paper, Sybille van den Hove and Professors Marc Le Menestrel and Henri-Claude de Bettignies explore how processes and consequences constitute a useful framework for understanding how businesses face ethical dilemmas and examine the question of businesses' good faith.

Not necessarily in B-school, where too many focus too little on doing the right thing -- despite the rash of corporate scandals.

Note: read readers' comments at:
http://www.businessweek.com/bschools/content/jul2002/bs2002078_9726.htm

Data has no ethics. Data doesn't care how it's used. But the use and misuse of data has become the critical issue for today's information-intensive enterprise. And now CIOs are working to develop a code for ethical data management.

Business ethics are about the morally functional nature of our business relationships. Because these relationships are such an important part of daily life, giving them the attention and care they deserve is crucial to an organization's success.

Succeeding in business doesn't mean trading in ideals for ambition. In fact, when properly understood, morality and success can reinforce one another.

In the wake of all those corporate scandals, B-schools are emphasizing ethics and responsibility. It's a sea change in business education.

Editor's Note: Also see "What Can Business Schools Do to Avoid Bad Apples? Readers Respond" by HBS Working Knowledge:
http://hbswk.hbs.edu/pubitem.jhtml?id=3093&t=heskett

Ethics investigations can be quite complex and fraught with potential risks. Taking care with them will allow the company to avoid pitfalls in both a legal and human sense.

In Turkey, the apartment buildings that collapse during earthquakes are known as "bribe buildings." In Africa, bridges dot the landscape with no roads to connect them. There's no doubt that corruption, endemic in emerging economies around the world, throws economic development into chaos. It affects decisions made by bureaucrats, degrades the quality of those in power, and discourages foreign investment. Wharton legal studies professor Phil Nichols talks about his research on corruption and suggests ways to combat it.

Editor's Note: see related article, "Keeping It Clean Overseas"
http://www.mbadepot.com/redir.php?ID=3960&db_table=links

Earlier this fall, Safeway, a food retailer based in Pleasanton, Calif., took out radio and television ads apologizing to customers of some recently-acquired grocery stores for changes in these stores' operations. Safeway joined what seems to be a long list of apologizers - from investment bankers to fast food corporations - who have recently expressed regret for a variety of mistakes. With a year full of apologies now coming to a close, Knowledge@Wharton looks at how effective apologies are, what they signal, when they should be offered and whether they can backfire.

To determine what ethics we should adopt, we must first decide what ethics are or what being ethical means. In other words, what are the right ethics to have?

The benefits of establishing an ethical environment can be countless but sometimes are difficult to measure. One area where companies can see a concrete, substantial benefit comes from establishing a program that meets the seven requirements of the US Federal Sentencing Commission's Organizational Guidelines.

Note: Darwin Magazine is now dead. Some articles are moving to CIO. I will try to update the links when I have time...

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Responsible information management allows you to achieve compliance with regulations,
create trust with your users and benefit yourself while you're at it.

Note: Older EBF articles are not currently online. I'm not sure if this is temporary or permanent. If you click you will be taken to the Archive.org site to find an archived copy.

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It is not enough to change or re-regulate the rules of corporate capitalism. The present crisis requires a more substantive transformation of business.

A number of companies have discovered how difficult it is to do well by doing good. Some question whether it makes any economic sense at all.

Is business malfeasance always the board's fault? HBS professor Constance Bagley argues that everyone has a stake in ethical behavior and moral reasoning.

"When it comes to ethics, many myths still exist in the minds of MBA graduates and others in the business world. I want to lay out seven fundamental myths about ethics."

There are many points to consider when developing ethical standards for a global environment. Getting all our employees to accept appropriate ethical standards makes our companies stronger and we become better corporate citizens in the process.

Note: Darwin Magazine is now dead. Some articles are moving to CIO. I will try to update the links when I have time...

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In some countries, greasing palms is part of doing business. Does that mean you should?

For companies that can't guarantee confidentiality, the answer is no.

Note: Older EBF articles are not currently online. I'm not sure if this is temporary or permanent. If you click you will be taken to the Archive.org site to find an archived copy.

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A company becoming a 'good citizen' will not only make the world a better place but will also add to shareholder value. An integrative approach is essential.

ManyWorlds takes a look at the work of William Damon on ethics and morality in business. In particular, it examines the four dimensions of morality and three underlying ethics assumptions.

This article offers a difficult message because it asks us to reverse many of the recent motivations in business. It asks us to seek selflessness rather than selfishness. It uses old-fashioned words like "duty" and re-interprets Maslow's concept of self-actualization in a most enlightening fashion. It asks us to take responsibility for what we do. At one point, the author says:

"Mere work ethic is not enough. The hardened criminal demonstrates a very good work ethic. What is needed is a work ethic conditioned by ethics in work."

Editor's Note: this article was originally available on TheWorkingManager.com - with the author's permission I have now posted a copy in the Member Contributions section. Just follow the link to read it.