Running head: ETHICAL ISSUES AND MANAGEMENT 1

Ethical Issues and Management

Maxine Branstetter

XMGT 2216

November 21, 2010

Deborah McCaffety
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Ethical Issues and Management

Traditionally the field of ethics in business is surrounded by academics, social standards,

and philosophers. Although in today’s business world, business ethics are not solely about the

needs of managers. Most of the business ethics written today include: philosophical, anthologies,

case studies, and focus on social responsibilities. The out come of these studies is mot the lack of

information, but the lack of involvement about business ethics from mangers and supervisors.

Since the movement in 1960, business ethics has become of disciplinary act among management.

During this era, expectations of social awareness in the business world increased to influence

problems such as poverty, crime, public health, protecting the environment, education, and equal

rights. People began to recognize, companies began to realize they owed it to our country they

must unite and improve society. The companies realized to improve, they must include

employees, customers, suppliers, and the community in their planning and operations, replacing

stockholder to stakeholder[ CITATION Wha93 \l 1033 ].

In the work place business ethics are about arranging the importance of moral values and

to make sure behaviors are appropriate with the moral values. Although there are myths about

business ethics that are sometimes confused with the inclinations of ethics. Some of the myths

are based on views as what is called ethical dilemmas. Some of the myths include: 1.) Business

ethics is about religion, whether than management. 2.) Employees already have ethics, so they do

not need to be taught about business ethics. 3.) Business ethics only means “be good”. 4.)

Business ethics is the good guys giving precedence to the bad guys. This is just a few of the

myths people believe [ CITATION Wha93 \l 1033 ].

Being a manager means a person also needs to be a role model. Managers have many

responsibilities and task to complete everyday, plus have control within the company. One of the

most important jobs a manager has is the hiring process. When hiring a person the manager looks
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for an individual that meets the qualifications for the job. Not only are qualifications important,

but so are the value and morals of the person applying for the job. In the management field a

person must take great concerns over any kind of unethical actions, comments, or decisions

which could be classified as unethical behavior, leading to legal issues. Regulations have been

set by the government as guidelines for companies to follow[ CITATION Eth02 \l 1033 ].

Moral and ethics may come up when dealing with the task of hiring new employees. A

manager is faced with several regulations when hiring a new employee, such as nepotism.

Nepotism is defined as, “patronage bestowed or favoritism shown on the basis of family

relationship, as in business and politics” [ CITATION Dic10 \l 1033 ]. This could affect a

company if the position is a competitive position. An example of nepotism would be if a

company had an opening immediately and several people applied for the position but the ones

that applied has never heard anything back from the company. The position is filled by a family

member or a friend because of who they knew within the company. A person with such authority

should practice certain procedures to avoid issues of nepotism. Some of the procedures, such as

review the companies policy about nepotism. Reviewing these policies will ensure unethical

procedures will not happen. The manger should work with Human Resource Center (HRC) to

ensure no current issues are present. Working with HRC will eliminate any rumors that could

arrive. This will have a positive impact on the company if any negative rumors circulate about

nepotism (Employeeissues.com2003-2010).

“The consequences of nepotism might constitute illegal employment discrimination

under Federal Discrimination Laws or state equivalents in either the private or public sector. For

example it night constitute illegal discrimination on the basis of race or sex, if an employer with

15 or more employees consistently hires relatives of a particular race or gender to the exclusion
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of non-relatives of other races or opposite gender. The consequences of nepotism might

constitute wrongful termination too. For example if a boss fires employees solely to create job

opportunities for relatives who have the same religious beliefs as does he/she, then the boss

might have illegally discharged those employees based on religion discrimination, if their

religious beliefs were not the some as his or hers” (Nepotism, Para, 5-7).

Management has a required hiring procedure, other than just a business decision. The

manager needs to take into consideration how hiring the new employee will fit in with other

employees, the work environment and society. Being socially and ethically responsible is

important, so is weighing the results for a profitable business decision (Essortment, 2002). One

of the main concerns of a manager is the social issues in hiring. Everyone usually worries how

the new employee will fit into the new work environment. Most generally when a new employee

is hired into a new environment where other employees have established their work ethics and

social ethics, there is always the concern of how the new employee will adjust. If a new

employee is very our spoken, demanding, and has a negative attitude, more than likely they will

not fit into the environment, and will not be hired. This is where the manager must make the

ethical decision whether this new hire is good for the business and employees. Being a manager,

thinking and acting ethical is a big responsibility. As is with most businesses, mixing business

and pleasure is not wise, when an acting manager starts mixing business and pleasure there is

bound to be social issues. This goes for hiring a friend, I know from personal experience. My

brother had hired me to do his bookwork; the ending result was not what we had planned. I also

experienced working with my husband. During the time I worked under him, he expected me to

be a half hour early; when I was early he could scoot out the door earlier to being his drinking

and golfing binge. This act is reversed to the manager hiring his best friend that thinks they can
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slack off because of being friends with the manager. The results of this was social issues because

I would be mad and this affected the employees, overtime I learn to just let it go, do my job and

in the end he would pay for his actions. Eventually this killed our friendship and marriage, also

causing carouse in the workplace. Ethically the right thing to do had this been a normal situation

of manager hiring a friend, would be the manager talk to the friend and explain to him/her that

the work they were to perform was not getting done on time by him. This performance can and

will affect the business. The manager should explain that a more experience and knowledgeable

person could be hired in his/her place. One thing to remember is there is always a qualified or

more qualified person out there waiting to take their place. It is up to the manger to hire the best

person for the job. Being an owner, remember “if you take care of your business, it will take care

of you.” This statement was made to me by a long time business owner in our community, Jim

Richcreek. He has past away, but owned a grocery store for many, many years.

In conclusion, a person that is in a management position has huge responsibilities such as,

setting the behavior and work ethics, atmosphere, and the hiring process. One of the important

things to remember when hiring a new employee is a new employee brings with them new

customers to the business. Also “good employees” enhance the business with good customer

service, and a friendly attitude. An employee who follows rules and is honest; reflect on the

business in a positive way. In todays economic and employment situation people will do

anything for a job they really want. The manager’s reasonability is to take the new hire and place

them into the workplace in their mind to see if the personalities, attitude and drive, fit in with the

position and employees already in place. Being an owner or manager the position means hard

work, long hour’s dedication to the business. When a person is hired as a manager the
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person/owner feels and sees the new manager has the right ethical standards and drives to control

and oversee the business.

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References

Dictionary.com. (2010). Retrieved November 15, 2010, from Dictionary.com:

http;//dictionary.reference.com/browse/nepotism

Employee Issues -Nepotism. (2003-2010). Retrieved November 15, 2010, from Employee Issues:
http;//www.employeeissues.com/nepotism.htm

Ethics in Business. (2002). Retrieved November 16, 2010, from Essortment:

http://www.essortment.com/all/ethicsbusiness_pqn.htm

What's the Matter with Business Ethics? (1993). Harvard Business Review , May/June, pp38-48.