Ethics and Unethical

GBS151

Introduction to Business

Lesson 1 Essay

If an employee leaves a company to work for a competitor, what types of knowledge would be ethical for the employee to share with the new employer and what types of knowledge would be unethical to share?

Ethics, by contrast, is defined as the principles and standards of moral behavior that are accepted by society as right versus wrong. (Bovee, Thill and Mescon 63). So today looking at the history of business in the United States, employees come and go and when this happens, every employer must put their faith into the employee that no company secrets will be exiting the door. However, some companies require their employees sign an agreement saying they will not go to work for a direct competitor for a specified amount of time. Employees and employers should work together to ensure that they both utilize ethical behavior when securing positions within a company.

Most companies compete within the boundaries of the law, and many more knowingly break the laws to gain the competitive advantage. For example, to get ahead of the competition, some companies have engaged in spying on other companies, stealing patents, hiring an employee from competitors to gain trade secrets, and eavesdropping electronically. (Bovee, Thill and Mescon 65).

Companies that behave unethical can cause harm to others. Harm can be caused to employees, customers, other companies, their communities, and investors. Nearly in every company, the way employees and executives handle information is the key to avoiding harm to others. Because these people often have access to information that outsiders don't have, they have a responsibility not to take advantage of the situation. Specifically, buying or selling a company's stock based on information that outside investors lack is known as insider trading, which is not only unethical but also illegal. (Bovee, Thill and Mescon 67).

All employers need to have a check in balance system to make sure employees are not stealing their secrets, and the employees are not doing illegal stuff within the walls. Each employer needs to adopt a code of ethics; this simply states that each company will operate with values and principles that should be used to guide each decision. To be effective in adopting the code of ethics the following must take place: supported by employee communications, a formal training program, employee commitment to follow, and a system through which employees can get help with ethically difficult situations. (Bovee, Thill and Mescon 68)