BME leadership and management development programme

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Ethics in management

Ethics in management

 Ethics – ‘The science of morals in human conduct’ ( from the Greek ‘Ethos’ – characteristic spirit or attitudes of a community, people or system’  While the ethics of a manager will always reflect the cultural values, including morality, of his or her professional and personal worlds ( Agenda A and Agenda B ), the ethics of agenda A are best described by the concept of ‘business ethics’

BME leadership and management development programme

BME leadership and management development programme

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Business ethics
 A form of applied ethics that examines ethical principles and moral or ethical problems that arise in a business environment  Relies on the assumption that ethical operation of a private business is at least possible  Business ethics is seen nowadays as essential for healthy management. Behaving ethically is an integral part of long - term career success, whilst there is a strong business case for ethical behaviour in a global environment with greater availability of information and greater competition

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Reasons to behave ethically
 From the point of view of internal customer:  improves organisational morale, culture and staff motivation, and ethical behaviour of management sets a good example to the employees – leading to recruitment and retention of better staff  From the point of view of external customer:  Improves the public image of the organisation, may raise inward investment , sales and profitability of the organisation besides adding to the overall development of ethical behaviour in the society

BME leadership and management development programme

BME leadership and management development programme

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S. Prakash Sethi’s 3 levels of organizational ethics
 Social obligation: the company does not wish to extend its activity any further than just meeting its legal responsibilities – its main purpose is seen as economic  Social responsiveness: the company adjusts its policies according to the social conditions, demands and pressures – its purpose is seen as both economic and social  Social responsibility: while the company still sees its purpose as both economic and social, it undertakes the obligation to anticipate upcoming social problems and to work actively to prevent their appearance
Sethi, S. P. (1975). "Dimensions of Corporate Social Performance: An Analytical Framework." California management Review 17

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An example of business ethics
 The Sullivan Principles (1977)  Developed to apply economic pressure on South Africa during the Apartheid era by Rev. Leon Sullivan, an African American member of the board of General Motors, eventually adopted by 125 US corporations that had operations in South Africa

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uk/tests. Equal pay for all employees doing equal or comparable work for the same period of time. 3. blacks and other nonwhites for supervisory.ibe. and health facilities. economic. in substantial numbers.transparency . Source: http://www. 5. administrative. 4. comfort. recreation. 2. and work facilities.am I happy to make my decision public especially to the people affected by it? 2. Non-segregation of the races in all eating. (added in 1984) Ethical decision making The UK Institute of Business Ethics suggests a simple 'test' for ethical decision-making in business: 1.org. Working to eliminate laws and customs that impede social. transportation.html 2 .have I fully considered the harmful effects of my decision and how to avoid them? 3.effect . school.would my decision be considered fair by everyone affected by it (consider all stakeholders . Equal and fair employment practices for all employees. Increasing the number of blacks and other nonwhites in management and supervisory positions.BME leadership and management development programme BME leadership and management development programme The Sullivan Principles .the effects of decisions can be far-reaching) If you can honestly answer Yes to each of the above questions then you are likely to be making an ethical decision. 6. Initiation of and development of training programs that will prepare. and political justice.1977 1. 7. and technical jobs. clerical. Improving the quality of life for blacks and other nonwhites outside the work environment in such areas as housing.fairness .

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