Every for profit organization has a basic business principle, which is to control and make a profit from selling goods and services. The company ‘World Com’ which this report would categorically focus on inflated its company assets by nearly 11 billion dollars and is one of the highlighted breaches of ethics that is categorically recorded in the case study.
This fraudulent activity was organized to intermediately have a negative connotation on the economy and raised the question of ethics in businesses. It should also be noted that in light of such blatant ethics break World Com were publically apologetic of the disaster and as a consequence the CEO served 5 years in prison. It is certain that subsequent to the incedent the company would be extra cautious to deal and combat ethical issues within a business environment (Trevino & Nelson, 2016).
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The American society have capital while the free market economy allows individuals to construct a promotional business model which sometimes encapsulates the core organization behavior and proves to be deceptive based on the profitability outcome. Materialism is one of the reasons that leads to individuals not opting for the morally higher outcome. This attribute can be rationalized by looking back at when a child is asked on what are the things he may sought after the most and to that most would reply to have a big house, expensive cars, a well do to family, vacations, children, a funds for child's college tuition, retirement plane, investment and eventually retired free of debt (Ferrell & Fraedrich, 2015).
People have to work in order to accomplish those goals which are predefined by societal rules and a desire to want more in life society has a norm for the rich and wealthy which is why sometimes, legal and business ethics are breached under such circumstances (Crane & Matten, 2016).
References
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do it right. John Wiley & Sons.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson Education.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
