Ethics as a feature of economic development – fact or myth

Business ethics is the reflection of culture and and development of countries. Most contemporary economists would agree with Lynn Sharp Paine (2008) who states, in his Value shift, how institutions, especially big corporations, have realized that they are not exempt from sophisticated evaluation criteria. Success and status in market is not measured just by financial indicators but more attentions is given to the companies personality therefore ethics is imposed as an imperative of personality. Criticism towards socially responsible behavior of corporations to employees, consumers and wider community poses high demands on corporations. Corporations are trying to show themselves as socially responsible, consistent in ethical conduct as a basis for success in the long run. Barkovic (2009) said that in all transition countries business ethics is very low therefore the top business move was how to deceive opponent, evidence to that lies in the number of failed investments in the eighties. Examples of lack of ethical behavior have far-reaching consequences to the complete economic success. In the time of economic crises it is more evident relocation of production from developed countries to areas where labor cost are much lower than labor cost in domicile countries. Do ethics have boundaries? Is ethics and to what extent a feature of developed economy? Is ethics form of actions that is not bound to spatial framework of the country or is it ethics a variable which under pressure of success can change, adjust to market conditions? These are just some of the questions that I am trying to give answer in this paper. This paper shows opinions and views of economists on the subject, research results of paradigmof corruptionindex and data analysis that show views about role of ethics on the overall performance of economy.