What is ethics? Ethics is “the rules of conduct recognized in respect to a particular class of human actions or a particular group, culture” (Dictionary.com). Ethical principles are embedded contracts that represent who we are and what we stand for, “Ethics must be lived not just talked about” (Karla Robertson p.26). The reason ethics are a major concern in organizations is because, one’s character and ethical behavior within an organization affects attendance, safety, loyalty, security, quality, profitability, and productivity. Organization leaders should practice good ethical behavior so their employees can have blueprint on how they should behave. Leaders must also make sure the employees are well aware that ethical values are highly valued. If leaders learn of an employee’s misbehavior, and choice to do nothing about it, that shows other employees that the organization doesn’t value their code of ethics policy; which isn’t good because this will make some employees fell that if they do the same they wouldn’t have any repercussions. So it’s very important that the leaders act the way they expect their employees to act in order to influence their behavior as far as ethics are concerned, “The behavior and ethical attitude of an employee’s boss is seen as the most important factor determining whether the employee will behave unethically on the job” (Liebig, J.E. 1990). By implementing an ethical policy organizations will prevent harm to others, fulfill public expectations and improve external relations, protect organization from others such as competitors and employees, and promote personal morality. I chose an article out of the Wall Street Journal, written by Steve Eder and Josh Barbanel dated July, 8 2011 to use as an example of an ethical issue that is being addressed in a corporation. This article is about Mr. Alphonse Fletcher Jr. Who is a “New York hedge-fund manager who made a splash on Wall Street in the 1990s, reporting 300%-a-year returns at his firm. Later, the flagship fund of his Fletcher Asset Management told of going 11 years without a single losing month” (Eder and Barbanel 2011). He offered 12% a year return to three public pension boards in Louisiana. Hedge fund lawyers analyzed the forms who said “they had never seen such an arrangement” (Eder and Barbanel). The three Louisiana pension boards accepted the offer. They invested $100 million that was being held for public employees and firefighters. In June, two of the boards wanted to withdraw some of their money, after their request Fletcher sent out a promissory note that assured payment within two years. Fletcher’s asset arrangement with the pension funds doesn’t seem to be the only unusual practice at the hedge fund firm. Fletcher reported over $500 million under management. It seems as if these figures came about by counting assets more than once, according to The Wall Journal, these finding came about after examining over 1,000 pages of investor communications and other forms that were attained via public-records requests. A more conventional way of measuring assets would have been to yield a figure of $200 million for one recent year. In 2009, Fletcher reported to the SEC (Securities and Exchange Commission) a year-end of total assets under management of $558 million. According to the firm’s financial reports, their primary investment vehicle held $187.8 million of securities. According to a Fletcher consultant's this constituted to about 95% of the firm's market investments. Which in 2009, converted to about $198 million, which is more than half of it the Louisiana pension funds' money. In 2010, the pension boards realized they didn’t receive an audit of their funds, which Fletcher blamed it on a restatement of previous year’s results and said that an audit will be done. In March two of the boards that haven’t received their 2009 audits asked for $32 million of their money back. The Fletcher’s firm said “the promissory notes it sent were permitted by the terms of the fund to pay redemptions in cash or "in kind”” (Eder and Barbanel). Charlie Fredieu, who is the chairman of the Firefighters' Retirement System of Louisiana, became worried about this. The Municipal Employees' Retirement System of Louisiana, who also received a promissory note, didn't respond to a request for comment on the redemption, and the New Orleans Firefighters' Pension and Relief Fund, said last week it decided on withdrawing. Alphonse Fletcher Jr. didn’t think of ethics when he was trying to get rich quick. He never thought of all the people his actions would affect.

References http://dictionary.reference.com/browse/ethics http://www.shsmd-nm.org/pnm-0806.pdf
Kinicki, A., & Kreitner, R. (2009). Organizational behavior: Key concepts, skills & best practices (customized 4th ed.). New York, NY: McGraw-Hill Irwin

Steve Eder, & Josh Barbanel. (2011, July 8). Highflier Tells Clients to Wait. Wall Street Journal (Europe), p. 24. Retrieved July 11, 2011, from ProQuest Newsstand. (Document ID: 2393357961).