The countries with the highest ethical standards lure the most investors, while those with the lowest standards and widespread corruption attract the least or risk losing those they already have . In the latter case, all members of society are the losers. Business loses if the public perceives profits as ill-gotten gain, while lack of trust between business executives creates suspicion in the simplest transactions. Government and the democratic process lose whenever the public's faith in institutions and the rule of law is eroded. Most importantly, ordinary people lose as the promises of democracy fail to materialize.
Strong ethics are essential to a free-market system.
The US stock market is by far the largest in the world. Because investors know they can entrust their money to distant managers with the confidence that on balance they will invest the funds wisely. In the final analysis, governments cannot legislate integrity and honesty. Policymakers and business leaders alike must demonstrate those qualities every day to make them the accepted norm. Each side must lead by example and clearly indicate that they will not tolerate corruption within their ranks.