Business Integrity in Practice

Chapter 11

Business Ethics Following a Financial Crisis

Throstur Olaf Sigurjonsson

Audur Arna Arnardottir

Vlad Vaiman

Introduction

The authors claim that the collapse of the Icelandic economy in the fall of 2008 was partially caused by the lack of good business ethics. The empirical research that will be presented here (where 400 managers of the 300 largest Icelandic firms were surveyed) supports such an argument. Other recent studies also provide compelling examples of unethical behavior leading to an unstable business environment—unethical behavior not only demonstrated by the Icelandic business elite, but also by politicians and civil servants.¹ These findings have surprised many, both inside and outside of Iceland, since Iceland was ranked ...