Business ethics Essay

The post that ethics plays in strategic management has changed drastically in the last 20 years. It was r be to comment companies that had ethics in the forefront of their management plans in the 1990s. Business was all about maximizing increase/shareholder equity. Incidents like Enrons bankruptcy caused a big change in management style. Enrons failure in 2001 represents the biggest business bankruptcy ever while also spotlighting corporate Americas moral failings. (Silversmith, 2013) That spotlight showed a moral environment fraught with greed and shortsightedness where long barrier growth for companies was concerned.New government regulations on business make it more important that the Board of Directors, chief operating officer and CFO takes more responsibility for how they run the company. Shareholders are also demanding more of the leaders of businesses. For a time, shareholders did not pay attention to how the company was run as long as they received their dividends. Now t hey are are much more aware. Many hatful were hurt financially by the bankruptcies and re-valuations of those companies with questionable practices. followers of profits is no longer the main emphasis for many companies.The emphasis is now on honourable issues including environmental, employee satisfaction, and consumer satisfaction. Ethics and integrity are at the core of sustainable long term success. Says Richard Rudden, managing partner at Target Rock Advisors in New York State. Without them, no strategy can work, as Enron demonstrated, enterprises will fail. That is scorn having some of the smartest guys in the room. Another area that was affected by the lack of corporate ethics was the owe industry. Regulations were relaxed, and some larger banks took it as a chance to make a lot of money in truth quickly.They wrote bad loans for people that could not pay. Using sub-prime methods led to a lot of people that could not open up to buy a home getting mortgages. When they c ould not pay, the banks found is financially more advantageous to counter rather than try to work with the borrowers. They are still doing that to this day, even with government mandated refinance programs. Unfortunately, some people/organizations take longer to learn a lesson than others. References Silversmith, K. (2013, May 14). Enron, Ethics and Todays Corporate Values. Retrieved from Forbes. com.