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BUSINESS STARTEGY AND POLICY
Final Paper
Albert Khodzhayev
Dr. Babita Srivastava
MGT4600
William Paterson University
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Every Corporation has its own corporate climate. A corporate climate
is the values a company shares, its customs, traditions, and the overall
behavior that it exhibits while conducting business. Corporate cultures can
vary vastly between countries, industries, or even competing corporations. It
has been proven that a business’s corporate climate is a key factor in
affecting employee behavior in the work-place and can affect the ethical
culture of the organization.1 All of these implied understandings among
employees about what behavior is acceptable is called ethical climate.
Many industries have very different ethical climates than others. The
ethical climate in many areas of the financial district, especially on Wall
Street, is not up to the standards of the climates in other industries. Behavior
in this sector has forced multiple government interventions, has caused
economies to go into crises, and regularly exploits communities for profits. I
believe because of the constant focus and emphasis on solely profits, this
industry has developed such a climate. The only thing important in many
financial industries is the number on the page. The only goal is to make that
number go higher and higher, in any way possible, by any means. Ethics and
values fall by the wayside as the constant pressure to make that number go
up drives our economy to shambles. I strongly believe that this industry
needs serious reform to its culture in order to prevent it imploding on itself,
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as we have seen it do many times before in history. I do not believe this
reform will be possible through government intervention, as the government
profits when this industry profits. It is a two-headed beast and unfortunately
I have lost faith in the governments ability to control the monster that was
created. The reform in this industry must start from within, from its own
employees. No law will change the mindset; there will always be another
loophole. The key is to make this industry not want to exploit these
loopholes on its own free will.
Another industry that we have seen that has a poor ethical climate is
the film industry. Many scandals have come out recently, but once again, it
is nothing new to this particular industry. Accounts of employee sexual
abuse, drug use, and exploitation are a common story when speaking of film.
The way many female actresses are treated is a disgrace to the industry. This
may be due to the intense amount of competition within the industry that
drives its members to forget their values and rely on unethical behavior to
get ahead by any means necessary. This is once again not something a
simple law can solve, as laws have been put in effect for many decades, if
not centuries, to deter this type of behavior. This change in behavior must
start within the industry and through the empowerment of its workers and
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victims. There must be open communication of the problems this industry
faces, because without discussion there will be no progress.
There is also the subject of accounting ethics. Many times accountants
have to face a dilemma in being loyal to their company and the interests of
the shareholders and public. This is a conflict of interest that many
accountants have to face, especially in corporations. Many corporations that
are involved in fraud call upon their accountants to falsify financial
statements. The accountant has an obligation to his company and his bosses
but he is also doing something unethical that may misalign with his values.
