Ethics Essay

1771 Words8 Pages
Introduction This report will analyse the main management issue for the company HIH Insurance. A lack of ethical policies and practices has been shown to be the underlying reasons for some recent corporate collapses, most notably the US energy company Enron Corporation (Carson, 2003; Mardjono, 2005). The management problem of ‘corporate ethics’ has been identified for HIH and this issue needs addressing because of the widespread social impact that corporate failure brings (Vinten, 2002). This report will argue that corporate ethics in HIH can be improved by implementing and practicing a Code of Ethics policy and improving the leadership skill of communication to effectively communicate these codes to the organisation. Firstly, the problems facing HIH are identified and secondly, two solutions are proposed and analysed. Finally, conclusions are provided with recommendations to improve corporate ethics within HIH. 1. The issue of Corporate Ethics for HIH Corporate ethics includes the values, standards and principles that guide individual decisions that go beyond legal governance requirements whilst considering societal expectations. Corporate ethics encompasses the whole spectrum of interactions between organisations, individuals and society on how business affairs are conducted (Davidson & Griffin, 2006; Grace & Cohen, 2005; Hazzlett, McAdam & Murray, 2007). It is evident within the case study that corporate ethics is a significant managerial problem for HIH, which displayed corporate lapses in ethical standards including breakdowns in governance and oversight structures, and a lack of competence and diligence at all levels. The collapse that followed this unethical corporate behavior resulted in the loss of many thousands of jobs and shareholders’ life savings. Similarly, the lost livelihoods, investments, retirement savings and the community

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