Ethical Issues in Organizational Behavior

Ethical Issues in OB

BUS 610 Organizational Behavior

Dr. Mark Pantaleo

October 10, 2011

Ethics involves the study of moral issues and choices (Kinicki & Kreitner, 2010). The authors also state that ethical behavior focuses on right versus wrong, good versus bad and the many shades of gray in supposedly black-and-white issues. These issues can come about on and/or off the job. The management team is responsible for practicing and implementing ethical standards.

In South Korea government officials decided that the best way to recover from the Korean War in 1953 was to allow concentration of scarce capital and technology to take place among family ran companies. Conglomerates were formed which controlled a numerous amount of subsidiaries, also having strong business relationships with its suppliers and government officials.

The founder of Hyundai, Chung Ju Yung died in 2001. Yung started to divide the Hyundai Empire amongst his children a year prior to his death. Chung Mong Koo was given control of the Hyundai Motors and Chung Mong Joon was given control of Hyundai Heavy Industries (Stanwick & Stanwick, 2010). Chung Mong Hun, one of Yung’s sons committed suicide in August 2003. He was facing charges of making an illegal payment of 100 million to the North Korean government so that the leader, Kim Jung II, would meet with the president of South Korea, Kim Dae Jung (Stanwick & Stanwick, 2010). Hyundai was accused of making $100 million in payments to North Korea in exchange for receiving contracts to build various projects in North Korea including a tourism enclave, an industrial park, various dams, an airport, telecommunication facilities and power generation station (Stanwick & Stanwick, 2010).

April 2006, Chung Mong Koo was charged with embezzling corporate funds for a slush fund for personal use and to pay lobbyists and politicians. The start of the investigation was due to Kim Jae Rok, former Kia director was charged with taking money...