Development of Business Ethics

A Timeline of Ethical and Socially Responsible Concerns 2

Before 1960: Ethics in Business Theological discussions of ethics emerged. The Protestant work ethic encouraged hard work 3

The 1960s: The Rise of Social Issues in Business Societal social consciousness emerged JFK’s Consumer Bill of Rights- A new era of consumerism Consumer protection groups fought for consumer protection legislation Ralph Nader Source: Hisham Ibrahim 4

The 1970s: Business Ethics as an Emerging Field Business professors began to write about social responsibility Philosophers became involved Businesses became concerned with public image Conferences were held and centers developed Issues: Bribery – Product safety Deceptive advertising – Environment Price collusion 5

The 1980s: Consolidation Membership in business ethics organizations increased Ethics centers provided: Publications, courses, conferences and seminars Firms established ethics committees Corporate support for ethics 6

The 1990s: Institutionalization of Business Ethics Guidelines for Organizations Set tone for compliance Preventative actions against misconduct A company could avoid/minimize potential penalties 7

The 21st Century: A New Focus Continued issues with corporate non-compliance Growing public/political demand for improved ethical standards Sarbanes-Oxley Act (2002) Most extensive ethics reform Increased accounting regulations FSGO reform (2004) Requires governing authorities to be well-informed regarding business ethics programs Firm’s greatest danger is not discovering misconduct early Basic assumptions of capitalism being debated Fears in the wake of global recession and financial meltdown 8