The Business Book

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M A K E I T E A S I E R

T O D O T H E R I G H T

T H I N G A N D M U C H

H A R D E R T O D O

T H E W R O N G T H I N G

CREATING AN ETHICAL CULTURE

T

he fundamental assertion of

business is that it exists to

make a profit. However, the

way that companies make a profit

has come under intense scrutiny,

particularly in the global economy.

The first recorded reference to

moral principles was Cicero’s De

Officiis, written in 44 BCE, which

stated that “right is based, not upon

men’s opinions, but upon Nature.”

In the 13th century, the philosopher

and theologian Thomas Aquinas

defined the principle of natural law,

saying that as a reflection of God’s

rational plan, our idea of what is

naturally right is also rational: an

action is ethical if it is judged to be

rational, or reasonable. This is still

IN CONTEXT

FOCUS

Business ethics

KEY DATES

44 BCE Roman lawyer Marcus

Tullius Cicero writes De

Officiis, discussing ideals

of public behavior.

1200s Italian philosopher and

theologian Thomas Aquinas

argues that price has a strong

moral aspect.

Early 1900s US president

Theodore Roosevelt declares

that businesses should “act for

the interests of the community

as a whole.”

1987 “Ethical Managers Make

Their Own Rules,” a Harvard

Business Review article by

Adrian Cadbury, highlights the

conflict between ethical and

commercial considerations,

and the increasingly close

scrutiny of corporate decisions.