How does an ethical system fit into strategic management?
It’s a primary responsibility of the top management team to have a clear strategic plan, including a good ethical environment for the business. That’s why in Chapter 1 of this text there’s a discussion that good ethics is good business. Research supports that conclusion. Nobody wants to do business, even on a personal basis, with someone they feel is going to be dishonest. The existence of a well-developed business code of ethics might have helped companies such as Enron and WorldCom deal with issues that are raised in the context of fraud. The Sarbanes-Oxley Act attempts to remedy some of those ethical problems. ### Interview conducted in December, 2004 by Rick Goossen, Executive Editor.
