Factors raising ethical standards:-
There are two factors that raise ethical standards. They are as follows:-
1. Public disclosure and publicity
2. Increased concern of a well informed public
These are followed by government regulations and by education to increase the professionalism
of business managers.For ethical codes to be effective, provisions must be made for their enforcement.
Unethical managers should be held responsible for their actions. One should not expect ethical codes to
solve all the problems. In fact, they can create a false sense of security. Effective code enforcement requires
consistent ethical behavior and support from top management. Another factor that could raise ethical standards
is teaching of ethics and values in business and other schools and universities.
The need for improvement of ethical behavior has become clear by way of some widely publicized cases.
Some of the suggestions are as follows:
1. Provide clear guidelines for ethical behavior
2. Teach ethical guidelines and its behavior.
3. In gray areas where there are questions about the ethics of an action, refrain from it.
4. Set up controls (e.g., establish an auditing agency reporting to outside directors) that check on illegal or ethical deeds.
5. Conduct frequent and unpredictable audits
6. Punish trespassers in a meaningful way , make it public so that it may deter others.
7. Emphasize regularly that loyalty to the company does not excuse improper behavior or actions.