THE INSTITUTIONAL DIMENSION OF BUSINESS ETHICS - AN AGENDA FOR REFLECTION RESEARCH AND ACTION

The current discussion of business ethics is nothing new. In fact it h as been a topic of common interest to both researchers and top manager s since the mid fifties; the focus adjusting to issues and problems of the times. The authors of the article list four themes they believe t o be of relevance for future discussion. First, ethics as an instrumen t of business behavior is entering a new dimension due to negative sid e effects of economic activities, which are even observed on a global scale and where it is doubtful that governments can adequately manage this complex environment. From this view, ethics becomes a decisive co mponent of efficiency and requires a new way of thinking on the develo pment of the market system and on a new delineation of responsibilitie s between government and markets. Second, in the process of transforma tion of the East-European states it seems to be all the more important to emphasize the ethical characteristics which are part of the concep t of competition - the gains to the consumer due to the plurality of s earch and discovery procedures, the capability to correct and absorb w rong decisions, and the specific distributional ethics. Third, busines s ethics as an element of the firm's ''guiding vision'' has to be inco rporated into its corporate culture, which will foster an institutiona l ethic of the firm - the joint effect of individual ethics within the history of the firm coupled with dme and experience. Fourth, conflict ing business philosophies must be judged with reference to the process of communication of business ethics. Summing up business ethics has a micro and macro component and is related to the individual firm as we ll as to the structure of the economic and social order. Ethics will, however, have a limited effect if it is not accompanied by the change in goals, structures and processes.