Ethical

Issues Facing Busines

ses
Ethical Issues Facing Businesses
1. Accounting. “Cooking the books” and otherwise
conducting unethical accounting practices is a
serious problem, especially in publicly
traded companies. ...
2. Social Media. ...
3. Harassment and Discrimination. ...
4. Health and Safety. ...
5. Technology/Privacy.
Factors Affecting Managerial Ethics
in a Profession
• The Professional as a • The Employing Organization
Person • Policies and strategies
• Personal capability • Codes of conduct
• Family influences • Behaviour of leaders
• Religious values • Behaviour of peers and
• Personal standards and subordinates
needs
• The External Environment
• Dynamics of Profession • Global system
• Professional values • Governance
• Institutionalization of •
profession Norms and values of society
• Standards of profession • Ethical climate of profession
Challenges to Managerial Ethics
• Socio-cultural challenges
• Social values and norms
• Level of empowerment
• Strategic and Structural challenges
• Political and bureaucratic capabilities
• Rationality vs populism
• Profit vs service
• Transparency vs secrecy
• Accountability dilemma: people vs managerial
leadership
• Managerial capability
 Challenges....continued
• Systemic and Methodological challenges
• Performance management
• Professionalism vs political consideration
• Social vs financial consideration
• Technological applications
• Behavioural challenges
• Compliance to ethical values and norms
• Political capability and commitment
• Managerial behaviour
• Group dynamics
• Risk factor
• Conflict of interest
• Ethical dilemmas
• Role conflict
Ethical Problems in a Profession
• Position vs rank
• Expertise vs authority
• Political organizing
• “Groupthink” syndrome
• Organized anarchism
• Capability for generating
intellectual resources
• Issues of research orientation
• Social and political support
 Improving Professional Ethics
• Philosophical base
• Selection of “good people”
• Cultural improvements
• Codes of ethics and management rules
• Leadership competency
• Goal-orientation and objectivity
• Participative management
• Independent social audits and monitoring
• Formal protective mechanisms for persons
acting ethically: Whistleblower protection
Value Based Management: Basis
for Ethics
• Drive value for key stakeholders
• Focus your business on what counts -
relentlessly
• Facilitate deployment of strategy and
management philosophy
• Establish accountability at all levels
Institutionalizing Ethics
• Strategic interventions
• Institution building interventions
• Systemic and methodological
improvements
• Behaviour change interventions
• Collaborative interventions
Thank you for kind
attention