Policy Proposal to Institute Ethics in Business Essay

Policy Proposal to Institute Ethics in Business - Essay Example I am sure that you have been briefed by your staff about the capital surplus that was just parked last year that amounted to a couple of trilion dollars that instead of reinvesting to expand the operation of business and create jobs (that would have helped us recover from the recession) businessmen and investors alike just waited and see. That is more devastating than what Enron and company did to the US economy for it is already a crisis of confidence of which we will not know when it will be over. I cannot stress enough how important it is for businesses to act ethically and responsibly. It is not just about being proper as a corporate entity but to avoid the economic consequences if business will misbehave. I am well aware that government cannot alter how people thinks and behaves but it has the power and resources to restructure the corporate and legal environs that would rehabilitate corporate behaviour and align its actions to a desirable corporate citizenship that is wanted by all through its various legal and policy instrumentalities that would make it act ethical. To achieve this, there are two policy proposals that I would like to suggest. This two pronged proposal is based on two principles. First, instilling business ethics at a preparatory level to make it as part of discipline that business professionals has to learn and imbue. Second is to make corporate malfeasance less advantageous by imposing heavy penalties to the level of economic sabotage to those corporations and individuals who will transgress the ethical law therefore serving it as a deterrence towards corporate malfeasance. At present, the punishment and aggravation against white collar crimes particularly corporate malfeasance is lesser than the benefits that the benefits that corporations and benefits will reap from it. For example, an executive and a business entity who is found guilty of corporate malfeasance amassed hundreds of millions if not billions of dollars only to be sentenc ed to few years of prison and/or few million dollars fine which in effect incentivize them to commit crimes. The recent laws enacted to prevent corporate malfeasance while needed were reactive to the present realities of business. For example, the Sabarnes Oxley Act is just a reaction to whistleblowing at Worldcom and intends to protect other whistleblowers in the future. While the law is good, it is limited and does not cover the entire gamut of corporate malfeasance nor encourages business to act ethically. My suggested proposals are as follows; first, require universities through the mandate of the law to include in their syllabi business ethics. Each student must be required to have an Ethics subject at least once per school year. The rational for this is not just to react for every corporate transgression that catches our attention but preventing it right from the source, when professionals are still learning the ropes of business. Second, disincentivize corporate crimes. Eleva te corporate malfesance to the level of economic sabotage applying the principles of general deterrence of which I will explain at length later. But for now, let me elaborate my first suggested proposal. Incorporate Business Ethics In School Curricula Intensively I believe that given the recent scandals that rocked the business and financial world, it now becomes an imperative that each individual entering into the corporate and financial industry must have a