System of Inquiry to be used in evaluating decision-making, problem solving, and behavior in a business setting. Discuss possible reactions to the code of ethics by employees and the effect the system of inquiry will have on an organization.

System of Enquiry - Code of Ethics in Business Setting

Ethical conduct of business has assumed added significance given need for accountability and responsibility of firms towards stakeholders including the general public and the government . The rise of cases involving large business houses as Enron in fraudulent activities has placed greater focus on the need for ethical business . The responsibility of the CEO and the top management towards all stakeholders and not just shareholders is paramount . The Enron case highlights that the company possibly indulged in illegal activities which were to an

extent collaborated by the auditors Arthur Andersen There is enough evidence thus that the culture of ethical conduct of business had been severely affected in Enron which was supported by the external enquirer , the auditor . The problem in understanding ethics and implementing ethical behavior and standards is that morals continue to be considered as relative to time and situations . Thus there is a need to evolve and implement a code of ethics for business for long term survival and growth . Systems of enquiry for evaluation of decision making , problem solving as well as ensuring ethical behavior in all organizations need to be evolved to ensure adequate checks are available to protect the interest of the stake holders and long term sustainability of business

The evaluation of decision making as per a code of ethics will follow the core values and guide lines for conduct of business that have been laid down in legal instruments of the federal and state government . The key issue to be considered is to examine if a decision falls within laid down legal parameters . The next facet is to understand how it would be accepted by the general public as discerning members of society Application of core laws of the state is therefore essential . Any conflict of interest that has arisen due to the decision is also an important consideration . A conflict of interest arises due to differential in loyalty by employees with fair practices , the benefit of the company and /or their personal interests . Personal interest can be evident when there is preferential treatment towards a supplier , an employee or a competitor of the company . In some cases the employees could even deem to have direct financial interest in a company which is a competitor . Their decision making could be easily influenced

Intellectual property violations and copy rights have also assumed significance when a large number of decisions are being made based on shared information resources . In such cases the decisions made may be correct , but the processes used to make these do not contribute to long term ethical value of the company and could lead to embarrassment or even disasters as those experienced by Enron . Another facet of decision making is fair dealing of participants affected by the choices made by the company on their behalf . This is generally indicated by the principle of good faith in dealing with customers , suppliers competitors , employees and other business partners . Manipulation concealment , abuse of privileges or...