PRESENTATION ON

ETHICS IN MANAGEMENT

Presented By:
1. Zaki Ishtiaque Hussain; Roll: 3-18-38-034
2. Anika Tasneem Hussain; Roll: 3-18-38-067
3. Nasif Al Islam; Roll: 3-18-39-038
 Overview
What is Ethics?
Ethics from the viewpoint of Socrates
Managerial Ethics
Reasons to behave Ethically
Three View Points of Managerial Ethics
Three Factor that Influence Business Ethics
Types of Management Ethics
Approaches to Ethics
Improving Ethical Business Behavior
Ethical Leadership
What is Ethics?
Itis a baseline for what is right and
wrong.
Ethics helps us to have a ready
Ethics is REQUIRED in human life.
They act as our mediator when dealing
with people. If we have wrong sense of
ethics we will react to people in negative
manner.
Managerial Ethics
 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 promotes
human welfare and the good.
HR Ethics is “the affirmative moral obligations of the employer
(business) towards the employees to maintain equality and equity
justice”
Do not treat people (employees) simply as a means for our own
purposes without their full and free consent, because they are
ends in themselves
The most serious ethical issue in work place are Workplace
safety, security of employ records, employee theft, affirmative
action, comparable work and employee privacy right are all
related in HR ethics.
Three View Points of Managerial Ethics
1. Utilitarian view: ethical decisions are made
on the basis of their outcomes or
consequences.
2. Rights view: respects and protects and
protects individual liberties and privileges
3. Theory of Justice view: managers impose
and enforce rules fairly and impartially
 TYPES OF MANAGEMENT ETHICS
On the base of HR ethics HR managers can be
categorized in three broad types:
Moral Managers – Managers who acts as a
steward of ethical behaviors and promotes a
habit of operating well above the requirement of
law.
Immoral Managers – Managers who willfully
ignores ethical principles in decision making
and pursues self-interest.
Amoral Managers – Managers who
intentionally or unintentionally fail to consider
ethics in the business context.
Ethical Decision Making
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 alternation.
Ethical issue in HR
Ethical Issues Faced by Human
Resource
 1. Employment Issues: HR professionals are likely to face maximum ethical dilemmas
in the areas of hiring of employees.
2. Cash and Incentive Plans: Cash and incentive plans include issues like basic salaries,
annual increments or incentives, executive perquisites and long term incentive plans
3. Employees Discriminations: A framework of laws and regulations has been evolved
to avoid the practices of treatment of employees on the basis of their caste, sex, religion,
disability, age etc. No organisation can openly practice any discriminatory policies, with
regard to selection, training, development, appraisal etc. A demanding ethical challenge
arises when there is pressure on the HR manager to protect the firm or an individual at
the expense of someone belonging to the group which is being discriminated against.
4. Performance Appraisal:

Ethics should be the basis of performance evaluation. Highly ethical performance appraisal
demands that there should be an honest assessment of the performance and steps should be
taken to improve the effectiveness of employees. However, HR managers, sometimes, face
the dilemma of assigning higher rates to employees who are not deserving them; based on
some unrelated factors eg. closeness to the top management. Some employees are,
however, given low rates, despite their excellent performance on the basis of factor like
caste, religion or not being loyal to the appraiser.
Ethical Issues Faced by Human
Resource
5. Privacy: The private life of an employee which is not affecting his
professional life should be free from intrusive and unwarranted actions
6. Safety and Health: Industrial work is often hazardous to the safety
and health of the employees. Legislations have been created making it
mandatory on the organisations and managers to compensate the
victims of occupational hazards. Ethical dilemmas of HR managers
arise when the justice is denied to the victims by the organisation.
7. Restructuring and layoffs: Restructuring of the organisations
often result in layoffs and retrenchments. This is not unethical, if it is
conducted in an atmosphere of fairness and equity and with the
interests of the affected employees in mind. If the restructuring
company requires closing of the plant, the process by which the plant
is chosen, how the news is to be communicated and the time frame for
completing the layoffs is ethically important.
Ethical Issues HR Managers Face in an
Organization's Culture
Harming Some While Benefitting
Others
Equal Opportunity
Privacy
Compensation and Skills
Technology
Fair Working Environment
Core principles and concepts of Ethics for HR Managers

Strive to meet the highest standards of competence and commit

to strengthen the competencies on a continuous basis
Exhibit self as a role model by maintaining the highest
standards of ethical conduct
Promote and foster fairness for all employees and the
organization
Maintain a high level of trust with the stakeholders and not
engage in activities that create apparent or potential conflicts of
interests
Protect the rights of individuals especially in acquisition and
dissemination of information while ensuring transparent
communications and facilitating informed decision making
Organizational Practices to enforce ethical behavior in HR Managers

1. Induction Program: When new employees

join the organization in the HR designation, the
organization needs to brief them about the
policies and practices of the organization and
make them fully understand the repercussions of
ethical misconduct
2. Cultural Interventions: The organization
needs to make appropriate cultural interventions
at regular intervals of time trying to showcase the
ethical values and principles in the form of
storytelling to the HR Department.
Organizational Practices to enforce ethical behavior in HR Managers

3. Effective Selection Techniques: Organizations are

nowadays including psychometric test to test the
behavioral aspects of the HR Managers. They are also
giving more weightage to candidates who have received
prior Ethical Training as a part of their management course
curriculum

4. Reinforcements: Organization like Citibank, Shell and

HCL nowadays plays a very important role in reinforcing
ethical practices in the organization by rewarding and
punishing employees judging the ethical aspects of his
action towards the organization and the society as a whole.
Improving Ethical Business Behavior
1. Hire individuals with high ethical
standards
2. Establish codes of ethics and decision
rules
3. Lead by example
4. Provide ethics training
5. Conduct social audits
6. Provide support for individuals facing
ethical dilemmas.
Importance of Ethics in Management
Primarily it is the individual, the consumer, the employee
or the human social unit of the society who benefits from
ethics. In addition ethics is important because of the
following:
1. Satisfying Basic Human Needs
2. Creating Credibility
3. Uniting People and Leadership
4. Improving Decision Making
5. Long Term Gains
6. Securing the Society
Some Practices of Ethical Management
1. Honesty
2. Integrity
3. Promise-Keeping & Trustworthiness
4. Loyalty
5. Fairness
6. Concern for Others
7. Respect for Others
8. Law Abiding
9. Commitment to Excellence
10. Leadership
11. Reputation and Morale
12. Accountability
THANK YOU