Ethics and its importance has been discussed across several disciplines including management, economics, and financial theory. In business the reason why ethics should be the emphasis of hiring, training, continual learning, and practice is because it is a liability. History has showed us in the business world, and in government economics poor ethics lead to negligence, and negligence is a major liability, and liabilities cost companies big money. A study in the automotive emission testing industry revealed inspectors display poor ethical behavior when dealing with more than one manufacturer (Pierce, & Snyder, 2008). When inspectors dealt exclusively with a single corporation testings were more accurate but with more than one organization emission accuracy sloped noticeably. Thus lead to Pierce, & Snyder studying the ethics level of a single inspector across several organizations. Further pondering of the ethical man across several organizations suggest ethical behavior is a cultural behavior as found with Fisman and Mykel's (2007) study of the diplomatic parking tickets, and Maggies (2000) study of misconduct at the Italian bank (Pierce, & Snyder, 2008).
Reference
Pierce, L., & Snyder, J. (2008). Ethical spillovers in firms: Evidence from vehicle emissions testing. Management Science, 54(11), 1891-1903. Retrieved from http://search.proquest.com/docview/213244013?accountid=35812
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