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Journal of Banking & Finance Vol. 26 No. 9 2002

Business ethics and organizational architecture

James A. Brickley1; Clifford W Smith Jr; Jerold L. Zimmerman1

1 University of Rochester

Abstract

We suggest that economics can complement traditional ethics discussions with the respect to at least three basic points. First, economics provides a theory of how individuals make choices; including choices that have potential ethical dimensions. Second business ethics and the internal structure of the organization are inextricably linked they establish important incentives for those individuals who compose the firm. Third, a company's reputation for ethical behavior is part of its brand-name capital. As such, it is reflected in the value of its securities.

DOI
10.1016/s0378-4266(02)00193-0
Volume
26
Issue
9
Pages
1821-1835
Language
en
Sources
openalex crossref bibtex:phds-export.bib

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