Business ethics Essay

The role that ethics plays in strategic management has castrated drastically in the last 20 years. It was rare to find companies that had ethics in the point of their management plans in the 1990s. Business was all about maximizing proceeds/shareholder equity. Incidents like Enrons nonstarter caused a big change in management style. Enrons failure in 2001 represents the biggest tune bankruptcy ever while also spotlighting corporate Americas clean failings. (Silversmith, 2013) That spotlight showed a moral environment fraught with greed and improvidence where prospicient term growth for companies was concerned.New organisation regulations on business make it to a greater extent(prenominal) important that the Board of Directors, CEO 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. N ow they are are much more aware. Many people were hurt financially by the bankruptcies and re-valuations of those companies with questionable practices. credit line of profits is no longer the main focus for many companies.The emphasis is now on ethical 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 orchestrate Rock Advisors in New York State. Without them, no strategy can work, as Enron demonstrated, enterprises will fail. That is despite having some of the smartest guys in the room. Another area that was touched by the lack of corporate ethics was the mortgage industry. Regulations were relaxed, and some larger banks took it as a chance to make a lot of notes very quickly.They wrote bad loans for people that could not pay. Using sub-prime methods led to a lot of people that could not afford to buy a rest home getting mortgages. When they could not pay, the banks found is financially more advantageous to preclude 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.