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In: Operations Management

why the changes in ethical business climate have occurred for the US, the top 10 and...

why the changes in ethical business climate have occurred for the US, the top 10 and the bottom 10 countries. Provide ONLY business examples

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Expert Solution

The ethical business climate has changed in US. Top 10 and bottom 10 countries this might be the reasons

1 Media exaggeration - consumers rely too heavily on media for the formation of perceptions concerning the ethical performance of business. The media tend to report the business news event that are of a more sensational one and downplay the mundane. "The jones company performed well and had many satisfied customers" this statement will be the news which features extraordinary or negative underemphasizes the typical actions of U S businesses which are usually ethical and abive board..This heavy media exposure lead to unethical business practices.These statements give false perception about the actual record of business which may fail to perform ethics.

2.Unrealistic customer expectations of business - The typical American customer does not understand the operational pressures facing U.S managers. American public has ethical expectations of business performance so high as to be unrealistic. Consumera judge the current "less than perfect " performance of business too hardly with regard to meet its ethical obligations. Managers like any group of people will have ethical lapses because they are human are likely to make mistakes even in the arena of moral judgement. Consumers standards are too high when judging the ethicality of American business.

3.The survey effect - This part explains that CEOs are playing a public relation game in characterizing the ethical performance of businesses because they know that the consumer views are closer to the truth than theirs.

4.Wish fulfillment - CEOs are more strongly with and feel more responsibility for the workings of the organizations than consumers and employees do. So they are pressured to paint a positive picture of organizational ethics. This personal bias compels them to exaggerate the ethical accomplishments of business corporations.


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