Does business ethics pay?
A study carried out by the UK Institute of Business Ethics from 2003 to 2007 established a positive relationship between business ethics and financial performance. At NYSE, studies and ethics surveys that are carried out from time to time have always validated a direct relationship between ethical business practices with the strength of business success factors such as stock prices, customer purchasing patterns, and employee retention. And a Global Investor Opinion Survey in 2006 which interviewed over 200 institutional investors revealed that investors are willing to pay a premium for companies that demonstrate high ethical standards across the globe.
Can ethics be trained and managed?
This question emanates from the myth that ethics is about having a good upbringing, meaning it can only be learnt through socialisation in families, churches, communities, etc. However, research has shown that business ethics training helps employees to fully appreciate their roles and responsibilities in nurturing an organisational culture in which they can resolve ethical dilemmas, seek advice on ethical issues, and report ethical concerns with confidence, and without fear of victimisation and retaliation. Carter McNamara, an ethics consultant in the US, argues that Business Ethics Management has evolved to become a key management science just as is the case with other management sciences such as Strategic Management, HRM, Information Technology, etc.