Ethics And The Process Of Self Regulation

1270 Words 6 Pages
Can consumers rely on ethics and the process of self-regulation as a useful way of controlling managerial and corporate conduct? Ideally consumers should be able to rely on the free market to guide business conduct effectively, making government intervention unneeded. However, the capabilities of a self-regulated system is highly revolved around individual business culture. Upon evaluation of America’s moral climate, ethical theories and business ethics in practice, the reliability of ethical conduct as a self-regulating force for managers and corporate leaders in the United States will be evaluated.
Corporate misconduct has been an ongoing issue for business in the United States and worldwide. This misconduct is said to be related to a frightening financial crisis that is the product of multiple issues including lack of government regulation, easily achieved credit, overextended borrowers, collapsed housing market, greed and more. Losses experienced during this epidemic can be greatly attributed to fraudulent and unethical transactions. To add to the frustration of ethical misconduct, often these bad transactions remain unpunished. Although settlements and civil punishments are enacted, proving criminal wrongdoing is exceptionally hard to achieve. Recently the government has become more aggressive in the prosecution process by punishing individuals like Bernie Madoff, Allen Stanford and Raj Rajaratnam for their fraudulent actions committed. But is it a little, too late?

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