The Importance of Ethical Decision Making - Business Law Review

The Importance of Ethical Decision Making - Business Law Review

  • Submitted By: danmfx
  • Date Submitted: 03/17/2009 10:45 PM
  • Category: Business
  • Words: 1476
  • Page: 6
  • Views: 1

Q1. Answer this question in no more than 1000 words.

You are advising a client who is the managing partner of a 6 person partnership engaged in a property development in NSW. The partnership is considering doing something which while legal, may not be morally correct (unethical). Write an essay setting out the theoretical framework you would use to discuss with the client what they should do in such a situation.

In your answer, you are to discuss the importance of ethical decision making and give two examples of relevant corporate ethical scandals that have occurred over the past decade in



Ethics on a global scale relates to morals, the treatment of moral questioning, and acting in a morally correct, honourable way or manner. However, business ethics provides the guidelines with regards to acceptable behaviour by organisations in both their strategy formulation and day to day operations. Businesses and organisations have thus realised the importance of ethical standards necessary for both corporate success and maintaining or achieving a positive corporate image.

Continued pressure from the consumer market, shareholders and other leading entities within businesses for more responsible and ethical business practices have forced many organisations to make a public commitment to ethical business by formulating codes of conduct and operating procedures and principles. This signifies organisation’s need to adhere to principles with regards to their actions such as corporate governance, personal and corporate accountability and corporate giving to name a few.

These various principles and procedures can thereby formulate an ethical business environment and avoid common decision-making mistakes leading to substantial financial and social loss. The recent collapses of large-scale companies such as HIH Insurance Ltd. and One-Tel Ltd. highlight the importance of how such ethical issues are...

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