The Ethical Practices Of Business Practices Essay

1329 Words Mar 15th, 2015 6 Pages
In 2007, the CEO and board of chairman Germany 's Siemens Cooperation stepped down after admitting to nearly $2 billion in bribes, which was the largest single corruption case in German corporate history. Klinkhammer (2013), argues that after being a corporate staple in Germany for almost 150 years, “corrupt activities had become cognitively institutionalized within the Siemens culture”. Similarly, the scandals of global companies such as Worldcom and Enron, just a few years prior garnered public attention and forced organizations such as the International Federation of Accountants (IFAC) to focus on the ethical practices of businesses. These are just a few examples of unethical business practices that continue to be a challenge within global markets and there are more being document every year. As globalization has taken center stage, ensuring that there is a common standard for ethics is more important than ever. However, there are numerous challenges that will need to be overcome before this can be a reality, which include reactive ethical practices, the focus of profitability and the different cooperate cultures across the global market. History in global business practices has shown the ethical practices are being implemented and followed more so as reactive processes as opposed to permanent solutions. Bishop (2013) attributes part of this reactive response to the lack of a clearly defined global standard for ethical business practices. Without clearly defined…

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