Ethics in management

Outline 1
1.The essential parts of healthy management
2. Ethics from the point of view of internal and external customers
3. The four levels of organizational ethics
4. Social responsibility and ethical business decisinions
5. Ethical decision making
6. Ethics in management

see Outline 1 for the material below

Ethics and ethical behavior are the essential parts of healthy management. From a management perspective, behaving ethically is an integral part of long - term career success. Wide access to information and more business opportunities than in the past makes ethics a need in modern business world.

Reasons to behave ethically

From the point of view of internal customer:

improves the atmosphere at work and helps motivating the employees

ethic behaviour of management sets a good example to the employees

evokes a sense of pride for the company and improves its image in the eyes of the employees

From the point of view of external customer:

improves the public image of the company adds to the overall development of ethical behaviour in the society

The four levels of organizational ethics

Social disregard: the company shows carelessness for the consequences of its actions

Social obligation: the company does not wish to extend its activity any further than just meeting its legal responsibilities

Social responsiveness: the company adjusts its policies according to the social conditions, demands and pressures

Social responsibility:the company decides to concentrate on its long - term goals for the benefit of society in general.

Social responsibility is an ethical ideology or theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. This responsibility can be passive, by avoiding engaging in socially harmful acts, or active, by performing activities that directly advance social goals.

Businesses can use ethical decision making to secure their businesses by making decisions that allow for government agencies to minimize their involvement with the corporation. (Kaliski, 2001) For instance if a company is proactive and follows the United States Environmental Protection Agency‎ (EPA) guidelines for emissions on dangerous pollutants and even goes an extra step to get involved in the community and address those concerns that the public might have; they would be less likely to have the EPA investigate them for environmental concerns. “A significant element of current thinking about privacy, however, stresses "self-regulation" rather than market or government mechanisms for protecting personal information” (Swire , 1997) Most rules and regulations are formed due to public outcry, if there is not outcry there often will be limited regulation.

Critics argue that Corporate social responsibility (CSR) distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations though there is no systematic evidence to support these criticisms. A significant number of studies have shown no negative influence on shareholder results from CSR but rather, a slightly positive correlation with improved shareholder returns. (Carpenter, Bauer, & Erdogan, 2010)

Ethical decision - making

When making a decision in management the following criteria of ethical decision - making should be considered:

Legality - will the decision somehow affect the legal status?

Fairness - how will the decision affect those involved in it?

Self - respect - does the decision - maker feel good about the decision and its consequences?

Long - term effects" - how do the predicted long - term effects relate to the above parameters?

"Ethics in Management" Management ethics are the ethical treatment of employees, stockholders, owners, and the public by a company. A company, while needing to make a profit, should have good ethics. Employees should be treated well, whether they are employed here or overseas. By being respectful of the environment in the community a company shows good ethics, and good, honest records also show respect to stockholders and owners.

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