BUSINES
S
ETHICS
,MEANING
Ethics is a set of rules that
define right and wrong
conduct.
Business ethics can be defined as
written and unwritten codes of
principles and values that govern
decisions and actions within a
company. In the business world, the
organization’s culture sets standards
for determining the difference
,between good and bad decision
making and behavior.
, Long termism in business
Issues of corporate ethics have taken the form of short-termism
vs. long-termism
If businesses are focused on long term stability and growth,
they are ethical:
Short term strategies, aimed at earning per share for the year
in question, compromise on longer interests
Warren Buffet has often stressed on long term strategies
Investigations into Fannie Mae suggested that the entire
senior management was intensively focused on earnings
guidance
Capital market orientation of companies force them to be
tempted by short term targets:
Increasingly, the entire system of how companies are evaluated
by analysts, investors and stock markets leads to a short term
approach
S
ETHICS
,MEANING
Ethics is a set of rules that
define right and wrong
conduct.
Business ethics can be defined as
written and unwritten codes of
principles and values that govern
decisions and actions within a
company. In the business world, the
organization’s culture sets standards
for determining the difference
,between good and bad decision
making and behavior.
, Long termism in business
Issues of corporate ethics have taken the form of short-termism
vs. long-termism
If businesses are focused on long term stability and growth,
they are ethical:
Short term strategies, aimed at earning per share for the year
in question, compromise on longer interests
Warren Buffet has often stressed on long term strategies
Investigations into Fannie Mae suggested that the entire
senior management was intensively focused on earnings
guidance
Capital market orientation of companies force them to be
tempted by short term targets:
Increasingly, the entire system of how companies are evaluated
by analysts, investors and stock markets leads to a short term
approach
