Ethical Conduct

Ethics are standards of conduct for judging right from wrong, honest from dishonest, and fair from unfair. Intentional

misreporting of financial statements in the Le$-$Nature's case was clearly unethical and illegal. However, many situations are

less clear$-$cut and require that individuals weigh one moral principle $($e$.$g$.,$ honesty$)$ against another $($e$.$g$.,$ loyalty to a

friend$).$ When money is involved, people can easily fool themselves into believing that bad acts are justified. To avoid

falling prey to this tendency, when faced with an ethical dilemma, it is often recommended that you follow a three$-$step

process:

Identify the benefits of a decision $($often to the manager or employee involved$)$ and who will be harmed $($other

employees, owners, creditors, the environment$).$

Identify alternative courses of action.

Choose the one you would like your family and friends to see reported on your local news. That is usually the ethical

choice.