Ethical Behavior in Managemment and Business

Ethical Behavior in Managemment and Business

Ethics is the term we give to our concern for good behavior. Its human nature to
not only is concerned with our own personal well being, but also that of others and
of human society as a whole. It is stated that ethics is a way of being human and
if men and women had not identified their own welfare with that of others, then
they probably would not have survived and developed (Ethics 5).

Business ethics is very similar to normal every day ethics in that it involves
being fully aware of what were doing including the complications and consequences
of our actions. Being aware of ethics in business requires us to be aware of two
things. First, we have to have a need with complying with rules, such as laws,
customs and expectations of the community, the principles of morality and the
policies of the organization and such general concerns as the needs of others and
fairness. Second, we should know how the products and services of the business,
the actions of its members, could affect its employees, the community and the
society as a whole, either positively or negatively (Ethics 5).

Good ethics means good business is the viewpoint of many businesses. Businesses
and their managers take ethics seriously. They reason their way through ethical
problems and acceptable solutions. Although there is always the reverse, where
businesses give the appearance of success for long periods of time in spite of
unethical practices. The news today is overloaded with stories of the fallen
heroes and devastated businesses that ultimately result from deception and
unethical solutions to the businesss problems (5). Many managers say that they
run into ethical dilemmas because they are involved in relationships with people
being employees, peers, and bosses with whom they have to work with and on whom
they are dependent. The problem is complicated because these people have needs
that are contrary to a businesss goals and competing needs. The manager is forced
to either chose between the business or the person, being a peer or employee, and
an unethical choice will affect the relationship of the other for years to come
(Ethics 6).

Businesses themselves have several responsibilities many of them being ethical.

First, they have the priority of making jobs (106). Once they create a job, its
their responsibility to see that hard work and talent are fairly rewarded. When
employees feel they are being treated fairly and with respect, they return the
favor back to their management by following orders and doing any task assigned to
them (107). If they feel they are being treated badly, they get back at the
business either ethically or unethically (Understanding 107).

Managers of a business sometimes lose their ethical perspective when making

decisions that affect people (9). Perhaps they are busy, or maybe they just dont
take the time to think through the consequences of their decision (9). Also, if a
senior manager were to make a decision that seemed unethical, the managers would
act on the decision without weighing the ethical overtones (Ethics 9). The same
is also true when several managers with a common goal agree in an unethical
situation (9). When unethical decisions are made, everyone loses in the long run,
both the company and the person making the unethical decision (Ethics 9).

Managers continually chose between people when making decisions such as whom to
hire, which employee to promote, or which employee to lay off or terminate (23).
Managers, knowing all the employees, their history with the company, their skills,
and other factors, cannot help being having a problem by his/her own conflicting
personal interest and biases (23). When choosing between people, objectivity is
the best way to make decisions such as who to hire, who to promote, or who to lay
off. Some managers have a problem by trying to choose the person with the least
personal pain possible. Managers should determine the appropriate candidates based
on honest consideration (24). Its a managers responsibility to know about who is
doing their fair share of work and who is not. Not doing so will cause low
morality in the work place because an employee not doing his/her fair share and
another employee doing his/her job (World 146). Another issue of that strongly is
merged with ethics is performance appraisals. Some managers do not feel
comfortable doing them because they do not want to be the judge and jury with
respect to their employees career (25). Some managers believe also by giving
their employees good feedback will cause the employees future job tasks to do
down. On the other hand, negative feedback will demoralize and demean the employee
and they give them a higher appraisal then they deserve (25). Failure to be honest
with employees about their performance is a form of deceit that is damaging not
only to the employee, but the business, and the manager (25). Managers that follow
appropriate performance evaluation guidelines and feedback procedures create an
environment where employees have an opportunity to correct their mistakes and grow
within the business (Ethics 25).

Successful Performance Appraisers

Managers who engage in mutual goal setting and open communication.

Managers who establish clear, measurable expectations and provide a climate

conductive to success.

Managers who ask questions, listen carefully, and appreciate and use the
ideas of others.

Managers who publicly recognize positive performance and privately correct

improper performance when it occurs.

Managers who follow through on their commitments

Unsuccessful Performance Appraisers

Those who establish arbitrary unilateral performance goals or standards.

They may or may not communicate them to employees.

Those who have not thought through what they expect or dont know how to
measure success, thereby creating a threatening atmosphere to work.

Those who never seek ideas of others or listen, yet have a solution for
everyone elses problems.

Those who spend too much time looking for things that are wrong and too
little looking for things that are right.

Those who accept substandard performance or misrepresent it in providing

feedback.

Those who do not take their commitments seriously.

In businesses, it is fundamental that managers are responsible for maintaining

discipline among the employees they supervise (29). Many managers dont discipline
their employees if the action isnt severe, which is a mistake. Its a mistake
because if the employee had previously done something that violates the businesss
code of conduct and wasnt disciplined, that employee and others that know about
this will think that they wont get into trouble and continue doing these wrongs.
Some managers who dont understand their roles relative to discipline, they will
probably either over- or under-react (29). The word discipline means, to teach so
as to mold (29). Unfortunately most managers dont learn the teaching and
molding aspects (Ethics 29).

Tips to Accentuate Positive Discipline

Make sure your players know the standard of performance desired.

Teach them how to attain standards.

Encourage them as they progress in the direction desired.

Compliment them when they attain standards and continue to reinforce positive
performance periodically.

Many incentive systems have been distinguished for employees that do their jobs
correctly and go above and beyond the tasks to get their jobs accomplished. Ethics
comes into affect for several reasons when dealing with incentive programs.
Managers may feel morally responsible to give an employee who previously won an
award to give it to them again to not discourage them, even if the employee didnt
deserve the award (Ethics 31). Also, managers may give the awards to people they
like personally more than others on a bias level. This not only hurts the
business, in the long run other employees start to notice this and become
demoralized and either their job is affected or they quit. This is not only
unethical but it disrupts the business in general.

Guidelines for Ethical Administration of Reward Systems

Managers should lay groundwork by insuring there is mutual understanding with

each employee about what is expected in terms of performance

Managers should update job descriptions as changes occur and insist that the
salary grades of my employees remain appropriate to their positions.

Managers should consistently monitor performance against expectations and

give all employees appropriate feedback.

Managers should be alert for both superior and inferior performance as

related to goals and standards.

Managers should note and communicate to others, employee efforts to develop

and increase their potential.

Managers should not let nonperformance factors like friendship, race,

religion, family background, sex, or age influence their decisions.

Managers should test their decisions to be sure they are based on facts and
just not assumptions or impressions.

Managers should make their decisions on objective data and push aside any
unwillingness to help their employees face reality.

Managers who observer other managers who are unethical in distributing

awards, should resist the same impulse and do something about it explaining that in
the long run it actually hurts the business.

Managers should strive to maintain equity between employees and be prepared

to justify with facts their decisions to anyone.
Not only are managers responsible for giving orders to their employees, but the are
responsible for taking orders from their bosses. Some orders may not only affect
employees, customers, and general public negatively, but might also be unethical
(35). A manger that passes an unethical order on to their employees may not have
considered the ethics on his/her own. Some managers who value ethics may have a
hard time giving out the order but there are some managers that will either ignore
the order or challenge it because they know its wrong (35). When challenging an
order, the manager challenging the order must be aware of what could happen to him
and the repercussions of doing so which may end up being his/her job. When
considering whether or not to challenge an order the manager may consider
unethical, the manager should try to suggest a better alternative to help him
become successful and not say that the order is pointless (Ethics 36).

Ten Ethical Mistakes to Avoid

Lying or in any way misrepresenting the facts about the activities that a
manager directs.

Blaming the managers boss for the managers personal mistakes or those of
his employees.

Divulging personal or confidential information to peers, senior managers,

employees, customers, competitors, or the general public.

Permitting, or failing to report, violation of any federal, state or

municipal laws or regulations.

Protecting substandard performers from corrective discipline or termination.

Condoning or failing to report the theft or misuse of company property.

Suppressing grievances and complaints.

Covering up on-the-job accidents and failing to report health and safety

hazards.

Ignoring or violating the bosss commitments to employees.

Passing on employee ideas as the managers own.

Ethical decisions of management are what make and break a business. Because of
them, people have good working environments to work in being that they are ethical.
Being ethical in management means that a business will have satisfied clientele,
good employees and usually a great atmosphere to work in. When a business or
anyone associated with the business makes an unethical decision, it usually catches
up with them in the end not only hurting themselves and the business, but those
around them such as clientele or investors that are also involved in the business.

Category : Management

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