Ethical management

One important challenge of management is operating an organisation in which members conduct their business in an ethical manner. One aspect of this challenge is having knowledge of environmental and organisational conditions that increase the likelihood of unethical behaviour. A second aspect for top managers is providing ethical leadership to the rest of the organisation through such methods as hiring the right people, setting standards more then rules, not letting themselves get isolated and making sure that their ethical example is impeccable at all times.

Managers who run businesses and other types of organizations might face tough, but realistic dilemmas in such areas as friendship, family, marriage, sex, romance, business, and politics that their own employees are likely to confront.

Managerial ethics are standards of conduct or moral judgment used by managers of organizations in carrying out their business. Such standards arise from the general norms and values of society; from an individual’s experience within family, religious, educational, and other types of institutions; and from interpersonal interactions with others. Therefore, managerial ethics may differ among individuals. Three major levels characterize managers: immoral management, amoral management, and moral management.

Immoral and unethical can be considered synonymous in business. Thus immoral management not only lacks ethical principles but is actively apposed to ethical behaviour. The key operative principle is: “Can we make money with this action, decision and behaviour?” Implied in this approach is the view that other considerations matter little, if at all.

In contrast to immoral management, moral management strives to follow ethical principles and precepts. While moral managers also desire to succeed, they seek to do so only within the parameters of ethical standards and the ideas of fairness, justice, and due process. As a result, moral managers pursue business objectives that involve simultaneously making a profit and engaging in legal and ethical behaviours. They follow not only the letter but also the spirit of the law and recognize that moral management generally requires operating well above what the law mandates. The central guiding principle is: “Is this action, decision or behaviour fair to us and all parties involved?”

The amoral management approach is neither immoral nor moral but rather ignores ethical considerations intentionally or unintentionally. These managers are basically inattentive or insensitive to the moral implications of their decision making, actions, and behaviour. The basic question governing their behaviour is: “Within the letter of the law, can we make money with this action, decision or behaviour?”

A moral management stance is more likely to be in the long-run best interests of organizations.

There are a few common sense guidelines that can be helpful in thinking about the ethical implications of managerial decisions and behaviours:

• obey the law, preferably both the letter and the spirit of the law;

• tell the truth, that is important in building trust with relevant stakeholders;

• show respect for people;

• stick to the golden rule “Do unto others as you would have them do unto you”;

• above all, do no harm (Primum non nocere);

• practice participation, not paternalism, that is aimed at learning about the needs of say relevant stakeholders, rather than deciding what is best for them;

• always act when you have responsibility. Managers have the responsibility of taking action whenever they have the capacity or resources to do so or whenever those nearby are in need and a manager is the only one who can help.

UNIT III FUNCTIONAL MANAGEMENT

Part 1

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