Ethical fading is a legitimate business risk. It occurs when the ethical aspects disappear from the decision-making process and happens when people focus heavily on some other aspect of a decision, such as profit. CEOs and executive teams may focus on compliance, but other competing priorities within the company might influence the final decision. That can lead to court, and penalties. Fines can convert ethical issues into business problems by attaching a price tag to them.
This piece draws lessons from the case of Carnival Corp. and its subsidiary Princess Cruise Lines, which were initially fined $40 million for dumping waste, and then another $20 million for violating their probation terms, by the US Department of Justice.
Via Markkula Centre for Applied Ethics, Santa Clara University, 24 June 2019See More