Setting challenging goals does not necessarily lead to unethical behavior but a flawed business culture where top management sets unrealistic goals can lead to ethics violations. Management must communicate that ethical behavior is expected. A culture focused only on profit and growth without considering the behavior it took to attain those profits is likely to lead to unethical behavior. Asking if it is ethical and profitable will encourage business ethics. Employees (agents) whose personal ethics are flawed are more likely to violate business ethics. Strong personal ethics will likely lead to good business ethics.
Unethical behavior also arises from:
- A simple failure to realize an issue may lead to an ethics violation. Asking whether each decision has ethical implications will encourage business ethics.
- Unethical leadership will set the tone and lead to violations. Ethical leadership formulates and communicates expectations that include sound ethical behavior.