"We demand that big business give people a square deal; in return we must insist that when any one engaged in big business honestly endeavors to do right, he shall himself be given a square deal."

Theodore Roosevelt, 1913

Part - I

Defining Business Ethics

Understanding the landscape of business ethics can be problematic. The field is vast; often encompassing such concerns as corporate governance, reputation management, accurate accounting and audits, fair labor practices and environmental stewardship to name but a few. In fact, the field addresses the entire scope of responsibilities - or obligations - that a company has to each of its stakeholders: those who have a vested interest - or stake - in the decisions and actions of a company, like clients, employees, shareholders, suppliers and the community. Depending upon the company in question, one may even be able to identify additional stakeholders.

Business ethics is a form of applied ethics. It aims at inculcating a sense within a company's employee population of how to conduct business responsibly. Because the term "ethics" can pose problems in an international context, i.e., the term does not translate well and it can be difficult to find a common understanding of the term, some organizations choose to recast the concept of business ethics through such other terms as integrity, business practices or responsible business conduct.

The Enron meltdown has created a good deal of negative publicity about employee ownership - with the fear that employee retirement savings are too heavily invested in their own companies' stock. But it seems to a lot of folks that employee ownership isn't the problem - it's the solution. Employees like Sherron Watkins on the board of directors might have prevented Enron, for example. And more employee stock ownership - and fewer executive stock options - would have reduced CEO incentive to cook the books at lots of companies. Plus, employees on pension boards might be the best way to protect workers' retirements. There are many ways employees can have an effective voice in financial and corporate governance, and many ways that our economy will benefit when they do.

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* Contributed by -
Swastik Rath,
Class of 2004,
Goa Institute of Management,
Ribandar, Goa.