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MGT 216 Week 4 Discussion Question 2




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What role do you think the personal morals of a CEO play in the handling of ethical problems
within an organization? Do long prison sentences help to deter corporate criminals? In what way
does media coverage impact ethical standards at the organizational level? Does a company’s
reputation impact your purchasing decision?
A CEO's moral compass plays a large role in the handling of an organization's ethical issues. If
the CEO's attitude toward business is to win business at all costs, the managers and employees below the
CEO will feel pressure to violate their own ethical standards in some cases to win business. This could
take the form of spreading misinformation about the competition, paying gratuities to a buyer,
exaggerating claims about their own products and so forth.
Long prison sentences play a role in deterring corporate criminals, but just as important is the
number of cases prosecuted. Corporate leaders with a faulty moral compass may be willing to roll the
dice against a long prison sentence if only one or two cases are prosecuted each year and would be less
likely to risk their livelihood if they perceived that the odds are fairly good that they will be caught in the
act and prosecuted.
Media coverage plays a critical role in an organization's ethical standards as the risk of not just
getting caught and exposed, but then put in the public spotlight for questionable ethical decisions can
undo the significant funds that the company spends on public relations and marketing to position
themselves in a positive light. The highlighting of an organization's faulty ethical standards puts the
organization into an untenable position because existing and future customers will hesitate or not do
business with an organization that they cannot trust.

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Awesome! Perfect study aid.