Several accounting and management--or broadly put ethics--scandals with some big companies (i.e. Enron, WorldCom, and Arthur Andersen) in recent years troubled the corporate world. These were not small issues, and resulting from these scandals companies were destroyed and top executives were jailed. As it is in every aspects of life, being ethical while conducting business may prevent these kind problems. Than, how can someone be ethical in business or what is business ethics?
Ferrell et al offers this definition: “Business ethics comprises the principles and standards that guide behavior in the world of business. Investors, employees, customers, interest groups, the legal system, and the community often determine whether a specific action is right or wrong, ethical or unethical. Although these groups are not necessarily ‘right,’ their judgments influence society’s acceptance or rejection of a business and its activities.” (Ferrell et al 2008, 6) Even though Ferrell et al put a really broad definition, they still feel the need to express that it may be perceived differently by different entities.