At some point, every organization will develop a product that does not sell well. The method an organization employs to minimize the damage is a clear indicator of the ethical standard within the organization. Ethical decision-making is easy when things are going well. Like most things, it is when times are tough that one’s ethical principals are put to the test. Leaders must be prepared for the time when the ethical path forward is not the most profitable in the short-run. Business ethics has evolved from the unorthodox strategies of Lockheed in the 1950s, rampant bribery in the 1970s, the Defense Industry Initiative (DII), and, ultimately, to the Ethics Challenge Game.
During the Korean War, US pilots told Lockheed executives the North …show more content…
As previously discussed, it was widely believed all corporations were giving bribes to gain an advantage overseas. Large corporations worked together to form the DII to level the playing field for all corporations to compete without the need for bribes. Lockheed had previously recognized the need for an ethics policy, but the DII helped ensure ethics policies would be successful. Prior to Lockheed’s ethics policy, most people recognized the need for leaders to behave in an ethical manner, but not corporations. “If corporations behaved responsibly, it was either because responsible behavior happened to conform to maximizing profits, or because a virtuous corporate leader was willing to put ethics ahead of the bottom line”(Terris, 2013). Lockheed’s ethics policy helped spread the responsibility to behave ethically throughout the entire organization. If not for the DII, Lockheed’s ethics program could have failed to live up to expectations. If other defense contractors were still using underhanded tactics to secure business, then Lockheed would operate at a distinct disadvantage while attempting to gain government contracts. It is not hard to imagine Lockheed compromising its ethics policy after a few contracts are lost due to competitors operating under a different set of rules. The DII required all of the members to operate under the same rules of engagement. Furthermore, DII met annually to help the entire team continue to improve the ethics strategies of the entire group. The DII recognized the importance of constant oversight of ethics within a corporation. Ethics policies require more attention than simply issuing the policy to all of the employees of an organization. Organizations must continually “beat the drum” to ensure a culture of ethical decision-making is incorporated in daily business. Without the
During the Korean War, US pilots told Lockheed executives the North …show more content…
As previously discussed, it was widely believed all corporations were giving bribes to gain an advantage overseas. Large corporations worked together to form the DII to level the playing field for all corporations to compete without the need for bribes. Lockheed had previously recognized the need for an ethics policy, but the DII helped ensure ethics policies would be successful. Prior to Lockheed’s ethics policy, most people recognized the need for leaders to behave in an ethical manner, but not corporations. “If corporations behaved responsibly, it was either because responsible behavior happened to conform to maximizing profits, or because a virtuous corporate leader was willing to put ethics ahead of the bottom line”(Terris, 2013). Lockheed’s ethics policy helped spread the responsibility to behave ethically throughout the entire organization. If not for the DII, Lockheed’s ethics program could have failed to live up to expectations. If other defense contractors were still using underhanded tactics to secure business, then Lockheed would operate at a distinct disadvantage while attempting to gain government contracts. It is not hard to imagine Lockheed compromising its ethics policy after a few contracts are lost due to competitors operating under a different set of rules. The DII required all of the members to operate under the same rules of engagement. Furthermore, DII met annually to help the entire team continue to improve the ethics strategies of the entire group. The DII recognized the importance of constant oversight of ethics within a corporation. Ethics policies require more attention than simply issuing the policy to all of the employees of an organization. Organizations must continually “beat the drum” to ensure a culture of ethical decision-making is incorporated in daily business. Without the