Business Ethics For Managers

Business ethics for managers encompass the moral principles that guide their decisions and actions, ensuring they are right, fair, and aligned with moral duties. These ethics form the foundation of a manager’s professional responsibility and are crucial for building integrity, trustworthiness, and a positive organizational culture.

Importance of Business Ethics for Managers

Following business ethics is crucial for managers as it builds key assets like integrity, trustworthiness, and compassion. Managers are responsible for making ethical decisions that benefit all employees, stakeholders, and the organization as a whole. Ethical conduct by managers ensures that business is conducted in a manner that is fair and just, fostering a positive work environment and enhancing the organization’s reputation.

Approaches to Business Ethics for Managers

There are three approaches to business ethics for managers –

Utilitarian approach

In this approach, managers analyze the effects of decisions on people affected by these decisions. The action, rather than the motivating force behind the action is the focus of this approach. Pollution standards and analyzing the impact of pollution on society is management ethics code under utilitarian approach.

Moral rights approach

In this approach, managers follow an ethical code which takes care of the most fundamental and moral rights of human beings; the right to speech, right to equality and freedom, right to life and safety, right to express feelings etc. In the context of business organizations, managers disclose information in the annual reports necessary for welfare of the people concerned.

Social justice approach

According to this approach, a manager’s actions are considered as fair, just and equitable to all individuals and groups. Employees are not distinguished on the basis of any characteristics such as caste, religion, race or gender though distinction on the basis of abilities or production is justified.

The Importance of Business Ethics for Managers

Business ethics refers to carrying out business as per self-acknowledged moral principles and standards. It is a structure of moral principles and code of conduct applicable to a business or organization. Business ethics are applicable not only to the manner an organization relates to its customers but also to the society at large. It is the worth of right and wrong actions from a business point of view.

The Role of Business Ethics in Organizations

Business ethics not only talk about the code of conduct at the workplace but also with the clients and all those associated with the organization. Business ethics imply conducting business in a manner beneficial to the societal as well as business interests, that is just and equitable to all, because every strategic decision has a moral consequence for all.

The Goals and Implications of Business Ethics

The main goal of business ethics is to provide people with the appropriate methods for dealing with moral complications. Ethical decisions in a business have implications such as satisfied work force, high sales, absenteeism, low regulation cost, turnover, more customers and high goodwill.

Business Ethics for Managers

Ethics are those principles that guide the actions and behavior of an individual. Following ethics is especially significant responsibility of a manager in an organization. The following list of principles are those that incorporate the assets and values that most people associate with ethical behavior. Some business ethics for managers are –

Honesty

Ethical managers are honest and truthful in all their dealings and they do not purposely mislead or deceive others by over statements, fragmentary truths, mis-representations, selective deletions, or any other means.

Integrity

Managers who follow ethics demonstrate personal honesty and integrity and the courage of their judgements by doing what they think is right even when there is great pressure to do the opposite; they are principled, have consistent adherence to ethics and morals and upright; they will fight for their values and beliefs. They will not sacrifice the principle for convenience, be hypocritical, or unethical.

Promise-keeping and Trustworthiness

Ethical managers are worthy of trust and loyalty. They are truthful, authentic and ready to supply relevant information and correcting misinterpretations of fact, and they make every possible effort to fulfill the letter and spirit of their commitments. They do not create explanations for escaping their commitments.

Loyalty

Ethical managers are worthy of trust, demonstrate strict observance of promises and loyalty to employees and other organizations by friendship in difficult times, showing support and devotion to duty; they do not use or disclose confidential information for personal or professional advantage. They protect the ability to make independent professional judgments and decisions by avoiding unnecessary influences and conflicts of interest.

Fairness

Managers who follow ethics are fair and just in all their dealings; they do not exercise power on random choice, and do not use unjust or indecent means to gain or maintain any advantage nor take undue advantage of their employees’ mistakes or difficulties. Fair managers manifest a strong commitment to the equal treatment of all individuals, justice, open-mindedness, tolerance for and acceptance of diversity; they are willing to admit their mistakes and, where appropriate, change their positions and beliefs according to the benefit of all.

Concern for others

Ethical managers are compassionate, caring, benevolent and kind. They tend to follow the Golden Rule that says, help those who are in need, and seek to accomplish business objectives in a manner that causes the least harm to others and the greatest positive good.

Respect for others

Ethical managers demonstrate respect for the human dignity, privacy, autonomy, interests and rights of all those who play a role in their decisions; they are polite and treat all people with equal respect irrespective of their characteristics.

Law abiding

Ethical managers abide by the norms, rules and regulations that guide their business activities.

Commitment to Excellence

Ethical managers pursue excellence in performing all their tasks and duties, guided by a consistent effort to increase their proficiency in all areas of responsibility and take the business to new heights of success.

Leadership

Managers who follow ethics are fully aware of the responsibilities and opportunities of their position and seek to be positive ethical role models by their own beliefs and conduct and by helping to create an environment in which principled and logical reasoning and ethical decision making are highly valued.

Reputation and Morale

Ethical managers seek to safeguard and maintain the company’s good reputation and the morale of its employees by not engaging in any such conduct that might compromise respect, and by taking whatever actions are necessary to correct or prevent inappropriate conduct of the employees and those who are associated with the organization.

Conclusion

Business ethics for managers are vital as they ensure that decisions are made with integrity, fairness, and respect for all stakeholders. By adhering to ethical principles, managers contribute to a positive organizational culture, enhancing trust and long-term success.