abhishreshthaa
Abhijeet S
Ethics In management:-
The 3 terms used to define ethics: -
1) Right
2) Proper
3) Just
Ethics of management is coined with above three terms and determination of what is right, proper and just in decisions and actions that affect other people.
Ethical theories in political behavior decisions
Three basic types of moral theories of normative ethics
Institutional ethics:
1) By establishing appropriate code of ethics.
2) By using a formally appointed ethics committee.
3) By teaching ethics in management development programs.
The most common way to ethics is to establish code of ethics. These programs r actually very seldom used in management although IBM, GE has instituted such programs
Code of ethics:-
Factors raising ethical standards:-
There are two factors that raise ethical standards.
They are as follows:-
1. Public disclosure and publicity
2. Increased concern of a well informed public
The need for improvement of ethical behavior has become clear by way of some widely publicized cases.
Some of the suggestions are as follows:
1. Provide clear guidelines for ethical behavior.
2. Teach ethical guidelines and its behavior.
3. In gray areas where there are questions about the ethics of an action, refrain from it.
4. Set up controls (e.g., establish an auditing agency reporting to outside directors) that check on illegal or ethical deeds.
5. Conduct frequent and unpredictable audits
6. Punish trespassers in a meaningful way , make it public so that it may deter others.
7. Emphasize regularly that loyalty to the company does not excuse improper behavior or actions.
- Every individual, every business, every government is concerned about ethics. Even we students have some ethics.
- But do we know what ethics means? The dictionary meaning of ethics is “The discipline dealing with what is good and bad and with moral duty and obligation”.
- Personal ethics refer to “the rules by which an individual lives his or her personal life. Accounting ethics pertain to “the code that guides the professional conduct of accountants”.
- Business ethics refer to is concerned with truth and justice.
- It has a variety of aspects such as fair competition, public relations, corporate behavior etc.
- Oxford says ethics is relating to morals, treating of moral questions, morally correct, honorable.
- It’s a study of moral choices. It focuses on standards; rules and codes of conduct that govern the behavior of individuals.
- In simplest terms business ethics are moral principles that define right and wrong behavior in world of business.
- Ethics is that branch of philosophy, which is concerned with human character and conduct
- Ethics r rules we play by standards of behavior accepted by the society.
The 3 terms used to define ethics: -
1) Right
2) Proper
3) Just
Ethics of management is coined with above three terms and determination of what is right, proper and just in decisions and actions that affect other people.
Ethical theories in political behavior decisions
Three basic types of moral theories of normative ethics
- 1) Utilitarian theory: - It means that plans n actions should be evaluated by their consequences. The idea is that plans and actions should produce the greatest good for greatest number of people.
- 2) Theory on rights: - People should have their basic rights via freedom of speech, conscience etc.
- 3) Theory of justice:- means that decision makers should be guided by fairness and equity, and impartial outlook
Institutional ethics:
- Managers are responsible for creating an organizational environment that fosters ethical decision making by institutionalizing ethics.
- Therefore Purcell and James Weber have provided three ways for integrating ethics in daily action.
1) By establishing appropriate code of ethics.
2) By using a formally appointed ethics committee.
3) By teaching ethics in management development programs.
The most common way to ethics is to establish code of ethics. These programs r actually very seldom used in management although IBM, GE has instituted such programs
Code of ethics:-
- A code is a statement of policies, principles or rules that guide the behavior.
- Codes of ethics do not apply to business; they should guide the behavior of persons in all organizations and in everyday life.
- Simply stating a code of ethics is not enough and the appointment of ethics committee, consisting of internal and external directors is essential in institutionalizing ethical behavior.
- Ethics deal with what is good and bad and with moral duty and obligation.
- The ethical codes serve a number of purposes by specifying behavior that is required for the protection and continuity of the professional group as a whole.
- Prescription of behavior serves as a clue to what type of response is expected in a given situation.
Factors raising ethical standards:-
There are two factors that raise ethical standards.
They are as follows:-
1. Public disclosure and publicity
2. Increased concern of a well informed public
- These are followed by government regulations and by education to increase the professionalism
of business managers.For ethical codes to be effective, provisions must be made for their enforcement.
- Unethical managers should be held responsible for their actions. One should not expect ethical codes to
solve all the problems.
- In fact, they can create a false sense of security. Effective code enforcement requires consistent ethical behavior and support from top management.
- Another factor that could raise ethical standards is teaching of ethics and values in business and other schools and universities.
The need for improvement of ethical behavior has become clear by way of some widely publicized cases.
Some of the suggestions are as follows:
1. Provide clear guidelines for ethical behavior.
2. Teach ethical guidelines and its behavior.
3. In gray areas where there are questions about the ethics of an action, refrain from it.
4. Set up controls (e.g., establish an auditing agency reporting to outside directors) that check on illegal or ethical deeds.
5. Conduct frequent and unpredictable audits
6. Punish trespassers in a meaningful way , make it public so that it may deter others.
7. Emphasize regularly that loyalty to the company does not excuse improper behavior or actions.