The theory of the Business: Organizations are developed and built on some theory or

assumptions provide a base to estimate about markets, identifying customers values and behavior
& competitors, technology available and its dynamics, company’s strengths and weaknesses and
about businesses outcomes. Good leadership in organizations or companies always do analysis
about objectives, growth and rethinking of the theory of business.

Businesspeople are facing an ethical crisis in their profession. Our public

esteem is at an all-time low with no signs of rising. It will take all of us
working together to fill in the hole we have made. Ethics have never been
more critical – or more precarious. 

One of the issues we all face is our ability to assess ethics – our own and
others – under changing conditions. In the latest issue of the Harvard
Business Review, Max Mazerman and Ann Tenbrunsel show how any of us
can go astray. In their article “Ethical Breakdowns,” they outline five critical
factors that can trip anyone up:

 Ill-Conceived Goals. Inadvertently setting goals that promote a negative

behavior. The pressures to maximize billable hours or revenue per customer are
both examples of goals that can promote negative behavior.
 Motivated Blindness. We can overlook the ethical behavior of others when
it’s in our interest to remain ignorant. Baseball officials ignoring the spread of
steroid use in their game is a good example of that phenomenon.

 Indirect Blindness. We hold others less accountable for unethical behavior

when it’s carried out by a third party. A drug company licensed one of its marginally
profitable specialty drugs to a third party, then raised the manufacturing price,
which in turn led the licensee to raise the consumer price. The company used the
licensee to impose a 1,000% price increase, deflecting attention from itself.
 The Slippery Slope. We are less able to see others’ ethical failings when
they happen over time. Auditors may fall prey to this if a company’s questionable
practices accumulated over time, rather than all at once.
 Overvaluing Outcomes. We give a pass to unethical behavior if the
outcome is good. A researcher with fraudulent clinical trial entries is more likely to
be given a “pass” if the drug works than if it doesn’t.
Peoples can face ethical crises in their business fields and it brings all of us to work together to
combat these crises. In this article of “ethical breakdown’, the Max Mazerman and Ann
Tenbrunsel explain how we can deal with these ethical crises in business and mentioned five
critical factors that are related to ethical breakdowns:
1. Ill-Conceived Goals. If goals settings are not correct then it will bring negativity in
any business person which will increase pressure for examples if want to earn
maximum profits from customer is example which promote negative behavior or
unethical practices.
2. Motivated Blindness. Motivational blindness is the tendency to not notice the
unethical actions of others when it is in our own best interests.
3. Indirect Blindness. Indirect blindness is you see what you want to see and you
disregard information when it's in your best interest to remain ignorant and we
hold others less accountable for unethical behavior when it’s carried out by a
third party.
4. The Slippery Slope. Unable to see and identify unethical practices which are
going on since long time and this develop gradually over the period of time.
5. Overvaluing Outcomes. Evaluate good outcomes to see whether if it is achieved
through unethical practices. Usually we give a pass to unethical behavior if the
achieved good or desired outcome.

According to this article the authors observe that even the best intentioned executives may be
unaware of their own or their employees' unethical behavior.
i- Ill-conceived goals may actually encourage negative behavior
ii- Motivated blindness makes us overlook unethical behavior when remaining ignorant is in our
interest.
iii- Indirect blindness softens our assessment of unethical behavior when it's carried out by third
parties.
iv- Take ownership of the implications when you outsource work, The slippery slope mutes our
awareness when unethical behavior develops gradually.
v- Examine good outcomes to ensure they're not driven by unethical tactics.

The article discuses five points that discuses how ethical breakdown can happen within
the organization:
1. Ill-conceived goals: Unintentionally setting goals which encourage unethical behavior.

2. Motivated Blindness: Ignoring right or ethical behavior of others when remaining

silent or ignorance is benefitting us.
3.Indirect Blindness: Holding actual culprits involved in unethical behavior less
accountable especially if there is involvement of third party.

4. The slippery slope: Inability to spot unethical doings that were being practiced for a
longer time.

5. Overvaluing Outcomes: Letting go unethical behavior just because outcome of it is

favorable.

Managers must be aware of unethical behavior being practiced in organization and spot
any area above and must take right course of actions to stop unethical behavior being
practiced in organization.