Business ethics are standards of conduct that apply to corporations and the people who manage them.

Business ethics are standards of conduct that apply to corporations and the people who manage them. Corporations have responsibility to act ethically and be good corporate citizens. Unfortunately, we read about ethics violations too frequently. Violations of these standards in Finance include fraudulent accounting, misleading financial forecasts, insider trading, excessive executive compensation, backdating of stock options and kickbacks. The financial press has reported on many such violations in recent years involving such well-known companies as Apple and Bank of America. Other areas of non-ethical behavior can be seen in environmental issues (think of BP's oil spill). An effective ethics program can enhance corporate value and produce many positive benefits. It can reduce potential litigation, maintain a positive corporate image and build shareholder confidence. To do: . Cite a recent example of corporate breach of ethical behavior. Discuss how it impacted the Company, its image and perhaps valuation. If possible, identify what management should/could have done differently. • Also, discuss your own opinion on matters of Corporate Ethics and why you think they are important.

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