Ethical Behaviors

in the increasingly competitive world business need to look for any competitive edge they can get by promoting ethical behaviours they are able to mitigate the risks of a pubic backlash against them if they are found to conducting unethical practices. this can be seen in many cases such as Nike’s use of sweatshop factories or AIG’s blat latent excessive risk taking and selling of CDOs and CDS. many firms have also promoted their use of corporate social responsibility to help them gain a competitive edge by associating their brand with ethical behaviours. in this day in age consumer have become increasing aware of companies practices and place a higher value on products the have been produced ethical and are produced by companies that go above …show more content…
The ethics of high management at TGI was very much focused around self-interest and not that of the greater society that it was a part of. They were misleading in there selling all Financial instruments. Their culture of rewarding those that had high returns generated a lot of excessive risk-taking amongst the employees of the firm. When the US government decided to bailouts ARG it shifted the burden of their malpractices to all taxpayers. Many considered the bailouts as every cool and wrong because it said a bad precedent for the government. Much of the problem stems from AGI 's incentive program and culture that placed a high expectation for results on executives while not placing much responsibility on them. This is why employees at AGI Took large risks in order for my returns yet they did not bear the consequences when the decisions were wrong or unethical. Instead, they were bailed out by the US government. Outside auditors raised concerns about the evaluations of the derivatives that AIG supplied them and however the executives of AGI at the time assured investors and auditors that AGI ad correctly identified their evaluations were correct. This became and ethical issues because it raises the question whether or not the executives had misled investors and the public while knowing different. In order for AGI to restore its reputation and …show more content…
However where there is a convergence of inches between Business and societies common goals there is an opportunity for developing a successful CSR strategy that will benefit both parties. In order for a firm to achieve a competitive advantage, companies must take into account demand conditions, Factor conditions, supporting the light kid industries and context in strategy. Often by mobilising the corporate sector in ways that will benefit those society cos cheez effective and efficient Solutions. This is because businesses will do so productivity and efficiency by their very nature in order to drive down costs and use of resources. Input such as human resources, capital resources, physical infrastructure, admin structure, The Scientific and technological infrastructure and natural resources. Can improve the availability of these resources by the use of feeling tropical initiatives that improve their local quality of life which benefits the surrounding society. Through charitable giving DreamWorks was able to it has the availability of employees with the necessary skills to work in the entertainment industry through an education program to train low-income students in Los Angeles. Organisations that also support related industries enhance the presence of capable suppliers with quality supplies and companies in related fields that their organisation relies on. This helps to develop clusters of