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                                   REFERENCE

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                                   REFERENCE

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- Information used in this timeline should be credited to its original source below

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Business Ethics and Compliance Timeline - Ethics & Compliance Initiative (ECI)

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Business Ethics and Compliance Timeline: This page follows the development of business ethics through six decades, examining:

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- Employees have an adversarial relationship with management
- Social unrest
- Values shift away from loyalty to an employer to loyalty to ideals

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- Civil Rights Issues Dominate
- Increased employee-employer tension
- Drug use escalates

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Ethics and Compliance Program Developments

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Ethics and Compliance Program Developments

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

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- Defense contractors and other major industries riddled by scandal
- There are heightened environmental concerns
- The public pushes to make businesses accountable for ethical shortcomings.

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- 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

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Ethics and Compliance Program Developments

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Ethics and Compliance Program Developments

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- Business ethics as a discipline is in its infancy
- Foreign Corrupt Practices Act of 1977
- Increased discussion of ethics and the importance of being "values centered" instead of merely adhering to the law

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- Corporations downsize and employees' attitudes about loyalty to the employer are eroded
- The social contract between employers and employees is redefined
- Health care ethics emphasized.

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- Transparency issues arise
- Bribes and illegal contracting practices
- Deceptive advertising

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Ethics and Compliance Program Developments

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Ethics and Compliance Program Developments

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- Creation of the U.S. Code of Ethics for Government Service (1980)
- General Dynamics establishes the first business ethics office (1985)
- False Claims Act (government contracting)

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- The emergence of the Internet challenges cultural borders
- Global expansion brings new risks
- There are major concerns about child labor, facilitation payments (bribes), and environmental issues

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

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Ethics and Compliance Program Developments

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Ethics and Compliance Program Developments

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- Professionalization of ethics function; launch of Ethics Officer Association (EOA) in 1992
- Transparency International releases its first annual Corruption Perceptions Index in 1995
- Class action lawsuits

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- Unprecedented economic growth is followed by financial failures
- Personal data is collected and sold openly
- Great Recession takes a toll on faith in U.S. economy and institutions

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- Cyber crime
- Privacy issues (data mining)

- The role of business in promoting sustainable development

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Ethics and Compliance Program Developments

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Ethics and Compliance Program Developments

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- Anticorruption efforts grow
- Business regulations mandate stronger ethical safeguards
- Stronger emphasis on corporate social responsibility and integrity management

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- Increasing distrust and cynicism of corporate America
- Unprecedented level of workplace diversity
- Higher expectations for transparency from companies and corporate leaders

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- Appropriate use of big data
- Tension between increasing transparency and loss of privacy
- Responsible use of technology and social media in the workplace

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Ethics and Compliance Program Developments 

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Ethics and Compliance Program Developments 

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- OECD issues Good Practices Guidance for anti-bribery compliance programs
- Passage of Dodd–Frank Wall Street Reform and Consumer Protection Act