Ethics In Management

Presented by ;Megha Pareek

MBA IV semester

• Ethics • Managerial ethics• Types of Managerial ethics• Improving ethical behavior • Ethical leadership • Factor shaping ethics in

organizations• Ethical decision making• Ethical decision making process

Contents

ETHICS• An area of study that deals with ideas about what is

good and bad behavior and with moral duty and obligation

• The rules and principles that define right and wrong conduct

• It refers to well-founded standards of right and wrong that prescribe what humans ought to do.

• Management ethics is the ethical treatment of employees, stockholders, owners and the public by a company.

• It is the study of standards of business behavior which promote human welfare and the good

• Ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass.

Managerial Ethics

• Managerial ethics is a set of principles and rules dictated by upper management that define what is right and what is wrong in an organization.

• It is the guideline that helps direct a lower manager's decisions in the scope of his or her job when a conflict of values is presented.

Three Types of Management Ethics

• Immoral Management- A style devoid of ethical principles and active opposition to what is ethical.

• Moral Management- Conforms to high standards of ethical behavior.

• Amoral Management- Intentional - does not consider ethical factors

Unintentional - casual or careless about ethical considerations in business

Types of Management Ethics

Improving Ethical Behavior• Hire individuals with high ethical standards• Establish codes of ethics and decision rules• Lead by example• Provide ethics training• Conduct social audits• Provide support for individuals facing ethical

dilemmas.

Ethical leadership Managers must provide a good role model by: Being ethical and honest at all times. Telling the truth; don’t hide or manipulate information. Admitting failure and not trying to cover it up. Communicating shared ethical values to employees

through symbols, stories, and slogans. Rewarding employees who behave ethically and punish

those who do not. Protecting employees who bring to light unethical

behaviors or raise ethical issues.

Is decision/ behavior ethical socially responsible ??

PERSONAL ETHICSBeliefs & values

Moral developmentEthical framework

ORGANISATIONAL CULTURE

Rituals , ceremonies , stories , languages ,

slogans , symbols , history

ORGANISATIONAL SYSTEMS

Structure , policies , rules , code of ethics ,

reward system , selection etc.

Forces shaping ethical decision making in organizations

• Ethical decision-making refers to the process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

• In making ethical decisions, it is necessary to perceive and eliminate unethical options and select the best ethical alternative.

Ethical Decision Making

Ethical Decision Making Process

• Honesty • Loyalty• Integrity• Keeping your promises• Fair• Caring• Respect • Obeying the law• Excellence• Being a leader• Morale • Accountable

Examples of Business Ethics