Acme Brick Company is an American manufacturer and distributor of brick and masonry-related construction products and materials. Founder, George E. Bennett (October 6, 1852–July 3, 1907), chartered the company in Alton, Illinois as the 'Acme Pressed Brick Company' on April 17, 1891. The company grew to become the largest American-owned brick manufacturer by the mid-20th century and was the first of its type to offer a 100-year limited guarantee to its customers. Acme Brick Company was acquired by Berkshire Hathaway, Inc. on August 1, 2000.
Since the 1970s, corporations have addressed business ethics in various ways, including the introduction of compliance programs and managers, the addition of board-level ethics committees, the development of codes of conduct, the preparation and dissemination of values statements, the hiring of corporate social responsibility managers and training programs of all kinds. As the events of the past few years in the United States and Europe have demonstrated, these efforts, unfortunately, have not prevented U.S.-based and European-based corporations from engaging in unethical behaviors that lead to larger corporate scandals. As a result there is increased pressure for U.S. and European companies and governments to provide more structured governance and ethics programs so that companies are more responsible to the societies in which they operate.
Continuing examples of questionable behavior by individual employees and executives have given rise to critical questions of how corporate ethics efforts can be improved and can address the underlying causes of misconduct, as well as the growing demands for proactive, socially responsible, and sustainable business practices. Recent history has shown that European-based corporations seem to be ahead of their U.S. counterparts on implementing corporate social responsibility (CSR) and sustainability practices but are they really doing a better job of avoiding unethical conduct on a large scale? This paper draws attention to some similarities and differences between American and European companies and their business environments. A closer look reveals that in this era of globalization the present day business operations in the United States and Europe are not as different as many assume. Both have to deal with the clouded definition of what it means for a company to be ethical and responsible.
Understanding the landscape of business ethics can be problematic. The field is vast, often encompassing such concerns as corporate governance, reputation management, accurate accounting, fair labor practices and environmental stewardship to name but a few. In fact, the field addresses the entire scope of responsibilities that a company has to each of its stakeholders: those who have a vested interest in the decisions and actions of a company,
like clients, employees, shareholders, suppliers and the community. Depending upon the company in question, one may even be able to identify additional stakeholders.
The field of business ethics is further complicated by the fact that many terms exist to refer to corporate offices and programs intended to communicate, monitor, and enforce a company’s values and standards (K. McElhaney, personal communication, February 4). In theory, one can make some rough distinctions among the various domains related to business ethics, e.g., corporate responsibility, social responsibility, corporate compliance, etc. In practice, however, such distinctions blur because corporate offices of compliance established in the 1970s may now function similarly to offices of corporate and social responsibility.
For the purpose of clarity, definitions will be provided for each of the terms that can be understood as related to the goal of improving the conduct of business, namely, business ethics, corporate compliance, corporate governance, corporate responsibility, CSR, and corporate sustainability. Please note that these definitions are not being offered as official definitions, but only to impart how they are commonly used in the business ethics industry.
Business Ethics
Business ethics is a form of applied ethics. It aims at inculcating a sense within a company’s employee population of how to conduct business responsibly. Because the term “ethics” can pose problems in an international context, i.e., the term does not translate well and it can be difficult to find a common understanding of the term, some organizations choose to recast the concept of business ethics through such other terms as integrity, business practices or responsible business conduct.
Corporate Compliance
U.S. business scandals that occurred in the 1980s – particularly related to government contracts – gave rise to corporate compliance, which is most often narrowly focused on complying with national and local laws and regulations (D. Vogel, personal communication, March 13, 2004). Corporate compliance officers and programs have been criticized for falling short of respecting the spirit of the law in favor of the letter of the law. It should,
Since the 1970s, corporations have addressed business ethics in various ways, including the introduction of compliance programs and managers, the addition of board-level ethics committees, the development of codes of conduct, the preparation and dissemination of values statements, the hiring of corporate social responsibility managers and training programs of all kinds. As the events of the past few years in the United States and Europe have demonstrated, these efforts, unfortunately, have not prevented U.S.-based and European-based corporations from engaging in unethical behaviors that lead to larger corporate scandals. As a result there is increased pressure for U.S. and European companies and governments to provide more structured governance and ethics programs so that companies are more responsible to the societies in which they operate.
Continuing examples of questionable behavior by individual employees and executives have given rise to critical questions of how corporate ethics efforts can be improved and can address the underlying causes of misconduct, as well as the growing demands for proactive, socially responsible, and sustainable business practices. Recent history has shown that European-based corporations seem to be ahead of their U.S. counterparts on implementing corporate social responsibility (CSR) and sustainability practices but are they really doing a better job of avoiding unethical conduct on a large scale? This paper draws attention to some similarities and differences between American and European companies and their business environments. A closer look reveals that in this era of globalization the present day business operations in the United States and Europe are not as different as many assume. Both have to deal with the clouded definition of what it means for a company to be ethical and responsible.
Understanding the landscape of business ethics can be problematic. The field is vast, often encompassing such concerns as corporate governance, reputation management, accurate accounting, fair labor practices and environmental stewardship to name but a few. In fact, the field addresses the entire scope of responsibilities that a company has to each of its stakeholders: those who have a vested interest in the decisions and actions of a company,
like clients, employees, shareholders, suppliers and the community. Depending upon the company in question, one may even be able to identify additional stakeholders.
The field of business ethics is further complicated by the fact that many terms exist to refer to corporate offices and programs intended to communicate, monitor, and enforce a company’s values and standards (K. McElhaney, personal communication, February 4). In theory, one can make some rough distinctions among the various domains related to business ethics, e.g., corporate responsibility, social responsibility, corporate compliance, etc. In practice, however, such distinctions blur because corporate offices of compliance established in the 1970s may now function similarly to offices of corporate and social responsibility.
For the purpose of clarity, definitions will be provided for each of the terms that can be understood as related to the goal of improving the conduct of business, namely, business ethics, corporate compliance, corporate governance, corporate responsibility, CSR, and corporate sustainability. Please note that these definitions are not being offered as official definitions, but only to impart how they are commonly used in the business ethics industry.
Business Ethics
Business ethics is a form of applied ethics. It aims at inculcating a sense within a company’s employee population of how to conduct business responsibly. Because the term “ethics” can pose problems in an international context, i.e., the term does not translate well and it can be difficult to find a common understanding of the term, some organizations choose to recast the concept of business ethics through such other terms as integrity, business practices or responsible business conduct.
Corporate Compliance
U.S. business scandals that occurred in the 1980s – particularly related to government contracts – gave rise to corporate compliance, which is most often narrowly focused on complying with national and local laws and regulations (D. Vogel, personal communication, March 13, 2004). Corporate compliance officers and programs have been criticized for falling short of respecting the spirit of the law in favor of the letter of the law. It should,
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