Assignment:
Write a intellectual response, in APA format if outside sources are used, to the following post...... Justify your answers based on
A.) "How" you arrived at your answer(s)
B.) "What" facts and sources you reviewed and considered
C.) "Why" your response is the best one from all the alternatives
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Corporate ethics has been expanding since 1991 when the U.S. Sentencing Commission declared that firms with "effective ethics programs would enjoy lighter sentences." (Darcy, 2005) In 2002 the Sarbanes-Oxley Act passed, the New York Stock Exchange and NASDAQ have placed greater emphasis on ethics and the U.S. Sentencing Commission again in 2004 redefined what an effective ethics program is. (Darcy, 2005) The Business Ethics Award for the 100 Best Corporate Citizens is a list of companies that have stepped up to the plate and over the past year have been playing the game of business with sound ethical practices.
In 2004 the list of variables used to determine what firms made the list included a group of seven stakeholders: Shareholders, community, minorities & women, employees, environment, non-U.S. stakeholders (human rights) and customers. (Graves, et al.) For 2005 governance was added as another stakeholder group, bringing the list of variables up to eight. (Asmus, 2005) Firms are scored in each category and then compiled to get an unweighted average (single) score.
Seeing how companies like Enron, WorldCom, Tyco among others have affected the corporate climate in the U.S., I think having a measurement that showcases firms that perform at a higher standard is very beneficial. The firms that make the list are doing a lot of things right, and are performing well with all eight stakeholders that are being evaluated. To make the list and stay there might be difficult, Fannie Mae ranked No. 1 in 2004 did not even make the list in 2005 due to accounting misrepresentations.(Kelly, 2005)
Like most competitions, there is room for error. The judging (calculating) is being done by humans, and even though there is probably a lot of thought involved to make sure there is no bias, it probably still happens. I think the eight stakeholders that are included in the group are sufficient, I can't really think of too many things that would not fit into one of those categories. I guess I am bummed that the company I work for did not make the list, we are on the Russell 1000 Index though.
References:
Asmus, P. (2005, spring). 100 best corporate citizens 2005. Business Ethics, vol. 19 no. 1, pp. 20-27.
Darcy, K. (2005, spring). Ethics Officers Double in Four Years. Business Ethics, vol. 19 no. 1, p. 9.
Graves, S., Waddock, S., & Kelly, M. How the List is Put Together. Business Ethics. Retrieved 22 August 2005, from https://www.business-ethics.com/100best.htm
Kelly, M. (2005, spring). Fannie Mae, No. 1 Corporate Citizen? How this firn went from No. 1 to 0 among 100 Best Corporate Citizens. Business Ethics, vol. 19 no. 1, p. 7.