Business ethics and the financial crisis

The oldest and possibly best definition of business ethics comes in Book 1 of the Nicomachean Ethics where Aristotle explains that, "The end of economic management science is to create wealth in such a way that developmentally changes the actor and the external world."

In other words, the principle of business is to create wealth in a way that makes the manager a better person and the world a better place. It is possible to create wealth, be ethical, and be happy at the same time.

The current subprime financial crisis could be a perfect example of the Aristotelian viewpoint in regards to business ethics, but is not. To its bottom line, it does not create wealth nor does it make the world a better place. Instead, it is about some getting rich at the expense of others.

Ethical considerations that figure into business decisions on a local and on a global level draft a code of ethics, and thereby portray the ethical priorities to which businesses should adhere. These ethical priorities are aimed mainly at the just distribution of economic goods and services among individuals, who have the right: to work, to free choice of employment, to favorable working conditions and remuneration, to equal pay, and to protection against unemployment.

Five commonly accepted principles of business ethics can make a difference in our economic future when combined with better government regulation and oversight. These principles are the foundation of most world religions and form the basis of moral conduct in personal life as well:

• Do no harm
• Work to make things better
• Respect others
• Be fair
• Be compassionate

In a well-regulated, market-based economy, driven by free trade and the promotion of economic growth, the least-advantaged members of the society should benefit from the mechanisms of the system. On the contrary though, the CEOs of well established firms that recently experienced serious trouble such as Lehman Brothers, Bear Stearns, and AIG got compensated with enormous payouts while piloting their companies to their demise, while their employees lost their jobs and customers lost their money.

Apparently, the decisions taken by these executives were based on personal gain, while their ethical considerations were sacrificed on the altar of big money.

ProQuest has created a BookCart learning activity for your students to learn more about the connection of ethics and the wellbeing of companies and the economy: Business Ethics: an Oxymoron?

This BookCart includes all the information that students will need to complete their research reports or presentations: essential questions for critical thinking (you can add or substitute others), student directions, a quiz, and a standard. It also includes links to ProQuest models for reports and presentations.

Learn more about BookCart learning activities creation tool via our collaboration guide. To copy this BookCart for your students to use:

• Logon to the eLibrary Teacher Edition.
• Click the BookCart Admin link of the Teacher Edition.
• Click the ProQuest Carts tab.
• Type Business Ethics: an Oxymoron? in the Search box.
• Click the Copy icon in the Actions column to the right of this title.
• Click Return to My Local Carts.
• Note: your new BookCart will have "Copy of" as its prefix

To edit and tailor the BookCart for your students to use:

• Click your new BookCart Title -- it will have the prefix "Copy of."
• Delete "Copy of" and then type your name in the Author boxes and your email.
• Optional: Edit the essential questions in the Description box.
• Optional: Edit student directions in the Description box for your students to use.
• Scroll down and click Save.
• Return to My Local Carts.
• Note: Students will be able to open this BookCart by clicking the BookCart tab on the search page.

Assign students to create a report of at least 150 words that cites at least three resources. Or, they can choose a PowerPoint report of at least two minutes and seven slides. Students should address the following essential questions for critical thinking (you can add or substitute others):

• Are business ethics similar to ethics principles for individuals and government: how and give examples?
• What are some possible strategies that could help improve business ethical behavior?
• Why is it important to solve the problems associated with unethical business practices?
• How is the lack of business ethics related to the current financial crisis?

Type business ethics and financial crisis as the search terms > type ethics in the Advanced Search Document Title box.

Use our custom ProQuest models for written and PowerPoint-style reports.

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