Why is ethics training becoming more prevalent in companies?

What will be an ideal response?


?Ethics training became more prevalent in companies following the high-profile corporate scandals such as those that occurred at the energy giant Enron in 2001. Corporate scandals are, of course, not new to the twenty-first century. What is new is a recent increase in the funding for the Department of Justice, the Department of Labor, the EEOC, and other agencies to investigate wrongdoing by employers. The most common forms of ethics violations, such as harassment, health and safety, and wage-and-hour violations, are related to employment laws. One study found that the problem gets worse in difficult economic times as companies try to cut costs.Government contractors and subcontractors with contracts that last for 120 days or more and are more than $5 million are required by law to have business ethics codes and compliance policies and procedures. Other organizations are not legally required to. However, in the event of a violation, those that have "effective programs to prevent and detect violations of law" will face reduced penalties under U.S. federal sentencing guidelines.

Business

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