How It Works. In order to do this, there are four main principles of ethical management you need to keep in mind at all times. New employees know right away your company's standards and expectations. Every day, managers and employees need to make decisions that have moral implications. For guidance with ethical concerns, project managers should refer to the Project Management Institute's code of ethics, as well as the Program Management Improvement and Accountability Act. Without trust, communication grinds to a halt. To say that one should do something is another way of saying it is ethical. When employees see you make ethical choices, it lets them know that they can have confidence in the company; they know that you’ll do right by them and your customers. The most important part about ethics in business is that the activity of the business should comply with the law, meeting the standards while it also follows its own clear aims and objectives of the organization and satisfying generally everyone who is involved in the business at the same time. A manager who is made aware of fraudulent activities within the workplace is ethically required to report this to the relevant authorities. The email address of a user is a very sensitive piece of information so make sure you use it wisely and keep spamming far away. In this paper we discuss these arguments, and we add new reasons that make up the ‘management case.’ By exploring why CSR is good management, this paper explains why CSR make the firm more human and the task of the manager … Ethics and People Management. Remember, however, that a code of ethics is worthless if top management fails to model ethical behaviors. They allow all the stakeholders to participate in the decision-making process. Asked by Wiki User. In project management, having a reputation for doing the right thing is essential for getting your job done effectively. How does an organization handle this task? And those decisions impact their companies, company shareholders, and all the other stakeholders in interest. Other managers recognize that they should be ethical but identify their ethical duty with making a legal profit for the firm. If they were married, they would not be bachelors. Max Bazerman and Ann Trebrunsel describe blind spots as the gaps between who you want to be and the person you are. Let’s assume we approached our best friend about the cheating. Leaders in government should also be expected to be ethical individuals. But why should they be concerned about ethics, as long as they are making money and staying out of jail? Corporate responsibility and ethics refers to how managers behave on behalf of the organization. If it is not ethical, then one should not do it. Managers should also hold regular workshops on ethics and demonstrate how employees can solve problems ethically. Likewise, HR is likely to be the heart of attempts to manage ethics within your organization. Some of the reasons often given as to why managers should be ethical include the following that are set forth by Rush worth Kidder (1997). Why should managers put Corporate Social Responsibility (CSR) into practice? Here’s why. This includes more than just acting in an honest, above-board manner. They face the complexity and try and work it out, as wisely as they can. 2. Ethics lays the strategic decision-making. One thought is they have “blind spots” where ethics is concerned. Use examples and role play to give employees opportunities to work through various dilemmas. It means establishing boundaries that prevent professional and personal interests from appearing to conflict with the interest of the employer. Ensuring there is fairness and respect of all parties involved is of upmost importance. How to Make Ethical Decisions When Conflicts Exist in the Workplace. Good ethics at a business start at the top. HR may not get the glory that Finance does, but it’s just as important. Your ethical bribe should be unique and 100% original. It’s certainly no secret that the desire to be perceived as ethical is important to organizations as we consistently see narratives surrounding potentially unethical behavior within organizations play out publicly. ethics: The study of … Business ethics (also corporate or professional ethics) is a form of applied ethics that examines the principles and moral beliefs that guide management decisions. 29 30 31. There is always opportunity to rationalize decisions, making them self-directed and to your benefit. Wiki User Answered . This gives accountants a good deal of … We should go beyond these simple, but appropriate, answers, however, and point out some other reasons why ethical behavior and practice is warranted. This can be particularly awkward if the fraud is being perpetrated by the manager's employers. If you’re a business owner or manager, it’s important to lead by example. It should state the organization’s primary values and the ethical rules that employees are expected to follow. To begin with, accountants are often privy to sensitive information regarding their clients, such as Social Security or bank account numbers. Indeed, as a Christian, I would argue very strongly for all business people to behave ethically and would have a wide view of what I regarded as ethical behaviour. So it should be no surprise that the same struggle is prevalent in corporate environments under the umbrella of ethical or unethical behavior. Ethics should be thought of as the heart of your organization’s HR function. One reason is the manager is not trained in ethics so it is difficult to know when an ethical issue exists. That is perhaps why many managers try and simplify it by deferring responsibility (to someone or something else) and by turning ethical choices into simple economic decisions, or decisions driven by simple metrics. Why should a company Be Ethical? The more you train employees and place an emphasis on the importance of ethical behavior the more your staff will understand what is expected in the workplace. Submit Paper Details Issue instructions for your paper in the order form. Shows employees you are a responsible company One reason to develop a Code of Ethics is that it communicates to employees that your company is committed to doing business responsibly. Even Milton Friedman, in making the case that management should pursue the interests of shareholders, said that this should be subject to the law and ethical codes as determined by the culture of society. It’s hard to imagine a function more essential to most businesses than HR. ORDER THIS PAPER NOW AND GET AN AMAZING DISCOUNT. To be an ethical leader, you should have strong values and aim to inspire your employees. Yes, they must make complex choices in which moral values are sometimes in conflict with one another. Fraud is a serious ethical breach in the workplace. Ethics should be thought of as the heart of your organization’s HR function. Ethical ambiguities can be reduced by creating and disseminating an organizational code of ethics. From there, property managers should always analyze the whole situation, discover the facts, understand the consequences of their actions, and know who the decision will impact. Business Ethics Help You Retain Top Talent. This time, we take a look at ethical issues more specific to management--and not necessarily just IT management. It is like asking, “Why are bachelors unmarried?” They are unmarried by definition. Leave a Comment. 28 Reasons Why Ethics are Important In business. Proper ethics and ethical behavior are extremely important in accounting for a variety of reasons. Ethical managers do not shy away from their responsibility. Who should be involved in the process? As such, anyone that either conducts or witnesses such an act has a responsibility to report it through the appropriate channels. Similarly, HR is likely to be at the heart of attempts to manage ethics within your organization. Importance of Business Ethics in Strategic Management. Managers often face ethical dilemmas in the workplace but may not aware of it. Why should managers be concerned with ethical business practices? 2011-02-03 09:17:58. The ethics of a finance manager should be above approach. Leaders and workers of a business characterized by ethical behavior make decisions that are socially acceptable. See Answer. Management training will help you with this and there are several responsibilities and obligations of an ethical manager, including setting a good example, holding everyone to the same standard, and making expectations clear. Making ethical decisions also involves choice about who should be involved in the process and how the decision should be made. An ethical manager is also obligated to set the expectation that any and all ethically unsound practices are not acceptable. 1- Why should managers use ethical criteria to guide their decision making? It is the same with ethics. Why should managers use ethical criteria to guide their decision making? Key Terms. They increase employee retention. As Jason Dana, who teaches Ethics and Decision-Making at Yale School of Management (US), explains – ethics should be ingrained in all business and leadership. The so-called legal, ethical, social and business cases provide several reasons. Top Answer. What factors need to be considered? Here are seven specific ways to practice ethical leadership. There is already something odd about this question. my essay question is Why should managers use ethical criteria to guide their decision making? Facebook 0 Tweet 0 LinkedIn 0 Print 0. While misdeeds seem to get broadcast far and wide, if HR professionals want cooperation and respect from employees and managers, he says, we should more actively promote the ethical things we do. When managers aren't transparent about financials, they aren't acting ethically. 3- Research suggests that a […] Ethics are a set of moral standards that are relied upon to reach conclusions and make decisions. cognitive: Of the mental functions that deal with logic, as opposed to affective functions, which deal with emotion. 2- Designing or structuring an organization is not an easy task for the success of the organization. It has to be 1 page and be in APA w/reference page. 1. In other words, most of us want to do the right thing but internal and external pressures get in the way. Let me explain why. Being an ethical manager is difficult. Ethical issues include the obligations a company has to its employees, suppliers, customers and neighbors. Why do some people lack ethics? By Barrie Gross | In: Hiring & Firing. Why should you develop a Code of Ethics? Include a discount code if you have … The following are several reasons to consider adopting a Code of Ethics for your company. Please be specific in your answer. In a business environment, ethics are a key factor in responsible decision making. While HR may not get the glory that, say, Finance does, it’s hard to imagine a function more essential to most business. Importance of Ethics in Business Management Practice. “Morality is not something you can hang on a hook like your coat when you show up to work,” he points out. 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