Business Ethics Timeline

This page follows the development of business ethics through five decades, examining:

• Ethical Climate
• Major Ethical Dilemmas
• Business Ethics Developments

Scroll down to view the timeline or select a decade:

1960s  -  1970s  -  1980s  -  1990s  -  2000s

1960s

Ethical Climate

Social unrest. Anti-war sentiment. Employees have an adversarial relationship with management. Values shift away from loyalty to an employer to loyalty to ideals. Old values are cast aside.

Major Ethical Dilemmas

• Environmental issues
• Increased employee -employer tension
• Civil rights issues dominate
• Honesty
• The work ethic changes
• Drug use escalates

Business Ethics Developments

• Companies begin establishing codes of conduct and values statements
• Birth of social responsibility movement
• Corporations address ethics issues through legal or personnel departments

1970s

Ethical Culture

Defense contractors and other major industries riddled by scandal. The economy suffers through recession. Unemployment escalates. There are heightened environmental concerns. The public pushes to make businesses accountable for ethical shortcomings.

Major Ethical Dilemmas

• Employee militancy (employee versus management mentality)
• Human rights issues surface (forced labor, sub-standard wages, unsafe practices)
• Some firms choose to cover rather than correct dilemmas

Business Ethics Developments

• ERC founded (1977)
• Compliance with laws high-lighted
• Federal Corrupt Practices Act passed in 1977
• Values movement begins to move ethics from compliance orientation to being "values centered"

1980s

Ethical Culture

The social contract between employers and employees is redefined. Defense contractors are required to conform to stringent rules. Corporations downsize and employees' attitudes about loyalty to the employer are eroded. Health care ethics emphasized.

Major Ethical Dilemmas

• Bribes and illegal contracting practices
• Influence peddling
• Deceptive advertising
• Financial fraud (savings and loan scandal)
• Transparency issues arise

Business Ethics Developments

• ERC develops the U.S. Code of Ethics for Government Service (1980)
• ERC forms first business ethics office at General Dynamics (1985)
• Defense Industry Initiative established (1986)
• Some companies create ombudsman positions in addition to ethics officer roles
• False Claims Act (government contracting)

1990s

Ethical Climate

Global expansion brings new ethical challenges. There are major concerns about child labor, facilitation payments (bribes), and environmental issues. The emergence of the Internet challenges cultural borders. What was forbidden becomes common.

Major Ethical Dilemmas

• Unsafe work practices in third world countries
• Increased corporate liability for personal damage (cigarette companies, Dow Chemical, etc.)
• Financial mismanagement and fraud.

Business Ethics Developments

• Federal Sentencing Guidelines for Organizations (1991)
• Class action lawsuits
• Global Sullivan Principles (1999)
• In re Caremark (Delaware Chancery Court ruling re Board responsibility for ethics)
• IGs requiring voluntary disclosure
• ERC establishes international business ethics centers
• Royal Dutch Shell International begins issuing annual reports on their ethical performance

2000s

Ethical Culture

Unprecedented economic growth is followed by financial failures. Ethics issues destroy some high profile firms. Personal data is collected and sold openly. Hackers and data thieves plague businesses and government agencies. Acts of terror and aggression occur internationally.

Major Ethical Dilemmas

• Cyber crime
• Privacy issues (data mining)
• Financial mismanagement.
• International corruption.
• Loss of privacy - employees versus employers
• Intellectual property theft
• The role of business in promoting sustainable development

Business Ethics Developments

• Business regulations mandate stronger ethical safeguards (Federal Sentencing Guidelines for Organizations; Sarbanes-Oxley Act of 2002)
• Anticorruption efforts grow.
• Stronger emphasis on Corporate Social Responsibility and Integrity Management
• OECD Convention on Bribery (1997-2000)
• UN Convention Against Corruption (2003); UN Global Compact adopts 10th principle against corruption (2004)
• Revised Federal Sentencing Guidelines for Organizations (2004)
• Increased emphasis on evaluating ethics program effectiveness