Interorganizational Ethics: Standards of Behavior

Abstract

The traditional basis for advocating ethical business conduct has been morality defined in philosophical or religious terms. However, fairness and moral obligation have provided little incentive for anything like universal ethical business behavior. The idea that "good ethics is good business" as an incentive is looked upon with skepticism by those with bottom line responsibility. However, if managers were aware of the extent to which certain business behaviors impose significant costs on individual transactions and relationships, a valid incentive would exist. The need for such standards has intensified with the fundamental shifts in business philosophy, structure, and practice along with profound changes in product markets and supply sources. The universal standards, ISO 9000 for product and service quality, and ISO 14000 for environmental issues were created and implemented to cope with problems in their respective areas and they providea model which can be adapted to the realms of ethics.