Managerial Ethics

Ethics

Rules and principles that define right and wrong conduct Utilitarian view - ethical decisions are made on the basis of their outcomes or consequences
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Three Views of Ethics

Managerial Ethics (continued)

Three Views of Ethics (continued)

Rights view - respects and protects individual liberties and privileges Theory of justice view - managers impose and enforce rules fairly and impartially

Moral Development
Is a measure of an individual s independence as his/her moral judgment becomes less and less dependent on outside influences Stages start with making a choice between right and wrong based on personal consequences (continued)

Moral Development (continued)

As development evolves, moral judgment is less dependent on outside factors Individuals with highly-developed moral development can make clear distinctions to define moral principles separate from any authority

Values
Basic convictions about what is right and wrong Influence ethical behaviour Values are developed in early years

Organizational Factors That Affect Ethical And Unethical Behaviour

Businesses Improving Ethical Behaviour

Strong emphasis on corporate governance Companies refocusing efforts on business ethics New legislation to hold boards of directors more accountable

Managers Improving Ethical Behaviour

Hire individuals with high ethical standards Establish codes of ethics and decision rules Lead by example
(continued)

Managers Improving Ethical Behaviour (continued)

Delineate job goals and performance review mechanisms Provide ethics training Conduct social audits Provide support to individuals facing ethical dilemmas

Code of Ethics
Formal statement of an organization s primary values and ethical rules it expects employees to follow Usually written Must state in detail acceptable behaviours and actions

Management Responsibility Relating to Codes of Ethics

If possible, develop codes with active involvement of everyone in the organization All levels of management must support and continually reaffirm the importance Consistently discipline those who break the code Set an example by behaviour and action

Concluding Remarks
More and more organizations are appearing in newspaper headlines about ethical conduct Survey of employees shows workplace pressures are leading to more people considering acting unethically Concerns about social responsibility are growing