Value Of Business Ethics

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What is the Value of Business Ethics to Professional Managers? Introduction In general, one of the conditions that brought business ethics to the forefront is the demise of small scale, high trust and face-to-face enterprises, and emergence of huge multinational corporate structures capable of drastically affecting everyday lives of the masses. The thing is, that it is managers and CEOs who actually implement the decisions and get paid for their quality. Business ethics issues have been the case since business owners started to hire professional workers for the money, it is even more the case for professional managers, who are the most responsible people for the running of the business. That is, they put in time and effort for the benefits of the company, and get remuneration according to this performance. However, according to the theory of firm, the problems arise whenever managers’ and owners’ incentives are different (agency problems) or managers are able to procrastinate and/or hide the real company performance, because it is in their control to provide this kind of information (moral hazard). There have been a number of vivid examples, where stakeholders wealth and interests were drastically affected by fraudulent or at least unethical managers’ decisions. Examples include ENRON, WorldCom, Tyco and many more. Surely, business ethics is affected by insider trading, bribes. But in my essay, I would like to present my informed view of how one of the top managers behaved when he had conflicts with shareholders. Also as a part of my course paper on Russian banking industry I have done research on fraudulent actions and the subsequent regulatory response from authorities. And here in my essay I would like to share my findings. My experience I have a one-year work experience in 2008-09 at one of the major metallurgical holdings in Russia – ESTAR Holding. This was

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