The Recent Evolution of Ethics in Business Practice and Policy

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The growing attention to and awareness of business ethics can be attributed to a number of factors. These include the increased globalization and decentralization of business; an expanded corporate response to ethics; and the influence of various stakeholder groups focusing attention on both ethical successes and challenges.

Global Economy:With the globalization of the economy and the media and the growth of the Internet, companies are increasingly being held accountable for their ethical conduct and the conduct of their business partners throughout the world. In addition, a range of new economic issues such as the shifting of production to developing economies, what constitutes a "living wage," and how companies respond to cultural differences, is being cast in ethical frames by a variety of advocacy groups.

International Agreements and Actions:A number of governmental and non-governmental organizations and associations have joined in international agreements to fight against corruption and bribery around the world. International agreements relating to corruption include the 1996 Inter-American Convention Against Corruption and the 1997 Organisation for Economic Cooperation and Development's "Convention on Combating Bribery of Foreign Public Officials in International Business Transactions." In addition, numerous countries are developing their own anti-corruption and bribery standards.

Business Ethics Resources Globally:In recent years, several new ethics resource centers have been established around the globe. Some of these entities focus on business ethics exclusively while others deal with ethics more broadly. These include efforts by the Ethics Resource Center to help build or expand centers in Hong Kong, South Africa and the Middle East, and the Berlin-based Transparency International, which works specifically to curb corruption and bribery worldwide.

CORPORATE

Ethics Officers and Corporate Ombudspersons:The number of corporate ethics officer positions has dramatically increased over the past several years. In 1998, more than 500 U.S. companies have ethics officers, up from 200 in 1992. In addition, a growing number of corporations has added the position of ombudsperson, an individual who serves as a neutral, impartial arbiter who aids in dispute resolution. On the other hand, more and more companies that have identified ethics as an issue of critical business importance have chosen not to create a special ethics officers position, deciding instead to develop a decentralized approach whereby all managers are viewed as responsible for ethical decision-making.

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