Role of Business Ethics in Corporate America - Research Paper Example

The corruption and greed that came with the power of absolute control through economy also played it a pivotal role in the gradual deterioration. The ideology of free market economy and the capitalist economy gave rise to the economic set up that is most evidently practiced in America. It rose against the communist and fascist ideals and became the representative system of democracy. As the economies grew they evolved into a particular system with concrete rules and regulations. The business and industries developed and as the economy became global, these industries and businesses developed into multinational organizations and corporate.

The corporate became the central organs of the economic system, and with these in place, arose the need for maximizing profits. However, with the complete control of the economy came to power for this corporate that also held the place to make key decisions. As is said the absolute power corrupts absolutely, so with the complete control over most of the economic decisions and with the power to manipulate governments with their economic sway, the corporate leaders indulged in corruption and the trickle-down effect held true, as all those under them, followed their lead.

The corporate culture that developed in these circumstances was fraught with unethical practices; it fed greed and greed, in turn, lead to corruption in all the main quarters. While some of them were charged and punished for their practices, most of them continued the practices under the pretense of maximization of profits that ultimately had to trickle-down to the lower strata of the society. This, however, was not the case and while the money accumulated in the coiffeurs of the few, the main people who were supposed to be the beneficiary of the free market suffered and failed to progress.

The situation all over the globe remained the same. The fiscal crisis also, affected those at the lower strata of society, or in the underdeveloped countries, making their sufferings even worse. Starting with the sub-prime mortgage crisis, the economy in America faced a severe fiscal predicament, and the situation led to a complete withdrawal of faith on part of the people in the economic policies and transactions of government. This crisis, in turn, affected the global economy as all those nations who had invested in the corporations that were declared bankrupt or were on the verge of it, sank taking with them all the invested money.

The economies globally were also affected because of the severely interconnected nature of global trade and business. A lower federal reserve in any country affected the trust of all other countries in them and with the US itself on brink of fiscal disaster due to lack of liquidity, the current situation becomes a matter of grave concern for all involved. The situation also attests to the fact that transformations in the current economic set-up are gravely required.