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ABSTRACT. This is a study of 288 Korean and 323 Japanese Business executives. The result indicates that, (1) the business executives believe basically in higher level business ethics, but (2) they occasionally have to make unethical business decisions which conflict with their personal values, because of prevailing business practices. (3) However, they think higher ethical standards is useful for long-term profit and for improving workers' attitudes, and the standards can be improved, and (4) to improve ethical standards, model setting by superiors is the most important and clear-cut company policies and code of ethics are essential.
1. Introduction
1.1 Underlying assumptions
Improving ethical standards is necessary to keep basic order int he free market economy, and all those in the society benefit in the long run by maintaining and upgrading ethical standards. With such basic beliefs in mind, we can hypothetically say that;
(1) Business ethics is beneficial for both longrun profit and management efficiency of business firms, and
(2) Business executives basically believe in higher level business ethics.
(3) However, in making business decisions which have ethical implications, they are affected by factors other than their personal beliefs, but,
(4) Standards of business ethics can be improved by conscious efforts.
1.2. Purpose of the study
With such basic assumptions in mind, this paper attempts to throw some light on the issues. First, what do business executives consider ethical or "the right things to do"? This is important in understanding the ethical behavior of business executives, as different people may define ethics differently and there is no one answer to it. Second, what affects decisions on business-related matters which involve ethical issue? This depends upon what the basis of ethical judgement of business executives are. Third, what do the business executives think of the progress of ethical standards? And finally, what the business executives' views on how to improve ethical standards? Answers to these questions will provide ethical standards? Answers to these questions will provide reference points for a program to improve ethical standards of business organizations.
1.3. Scope and method of the study
In order to have deeper insights on these issues, studies on business executives of both Korean and Japanese business firms were conducted. In Korea, 450 questionnaires were handed out, with...