Business Research Ethic - Essay Example

In recent years, numerous businesses have been found guilty of unethical business research practices. Companies such as Enron and AIG are by far the biggest that come to mind, as they fraudulently reported profits, amongst other falsified reports, that persuaded current shareholders and potential investors that their current business model was more fiscally sound than it actually was. These ‘White Collar’ professionals made the news in recent years due to their big promises and ability to deliver – for a season (Shurden, Santaudreu, and Shurden, 2010, p. 117). Through than many questionable business practices, AIG ended up paying bonuses in the billions of dollars, even in the midst of receiving government bailout money.

This one action, almost more than any other, got the public and the government questioning at what point certain business practices become unethical and affect all of society, not only a select few. Business ethics has long been a grey area. As this article effectively points out, it is often difficult to determine what practices are truly unethical, and which are simply questionable. In the end, it is important to consider this topic because such behavior can truly impact the masses. As the authors state, “Our laws are a starting point for ethical conduct and are implemented in order for society to avoid extreme situations” (Shurden, Santaudreu, and Shurden, 2010, p. 117). In many of these situations, the injured parties are the shareholders, employees, and anyone in the public directly or indirectly involved in the company.

The point is made, therefore, that unethical business research practices affect more than just the immediate parties involved. In the case of AIG, a massive government financial bailout was required to keep the company from failing. The company was deemed to be too valuable to allow the unethical practices to destroy the viability of the institution. To have done so would have not only impacted thousands of jobs in America, but would have also resulted in repercussions felt around the world as global financial institutions have vast holdings in AIG.

Taxpayer money was used, then, to inject needed capital into the company to keep it afloat until such time that the company could be reorganized and new management bought in (Shurden, Sataudreu, and Shurden, 2010, pp. 118-119). Enron is another example mentioned in this article. The unethical business research practices at this company began when they falsified information that it gave to the public. This resulted in people, both outside and inside the organization, believing that the company was financial sound and provided a great investment opportunity.

The opposite, in fact, was true and the failure of the company resulted in great hardship not only in America, but globally as well (Shurden, Sataudreu, and Shurden, 2010, pp. 121-122). Society was greatly impacted by both of these examples. When large companies willingly conduct their business research in an unethical manner, trust begins to wither away. Our capitalist system is predicated on a certain amount of trust. We need to believe in the companies that we support in order to help them prosper and thrive in today’s rapidly advancing and global society.

Each time that trust is violate, society becomes a bit more