What does Management Ethics Mean?
Ethics refers to the philosophy that defines what is right and what is wrong. It is an idea about what is good and what is badly expressed in the behaviour of an individual. It is a moral obligation and set of rules that define the right and wrong conduct of individuals. It is not just a part of human behaviour. It is concerned with management also. The ethics that govern the functioning and working of management are called management 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. In other words, 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 that promote human welfare and the good. Ethics in the workplace helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass.
Types of Managerial 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-It can be intentional which does not consider ethical factors. However, it can be unintentional which is casual or careless about ethical considerations in business.
What does ethical management do?
- Establish codes of ethics and decision rules
- Lead by example
- Provide ethics training
- Conduct social audits
- Provide support for individuals facing ethical dilemmas
How can a manager be an ethical role model?
- 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 punishing those who do not
- Protecting employees who bring to light unethical behaviors or raise ethical issues
Factors Contributing TO Management Ethics
Different factors contribute towards the initiation and development of management ethics. Ethical management practices ethical behavior in performing all sorts of management functions in an organization. This includes ethical behaviour at the time of planning, organizing, staffing, directing and controlling. Moreover, different factors contribute to management ethics. Such factors are listed below:
- The honesty of individuals on different professional or personal works
- Loyalty towards the job and the organization
- Integrity
- The attitude of keeping the promises
- Fair treatment of individuals with no partiality
- Caring behaviour to colleagues
- To superior and seniors of the organization
- Excellent moral values and character
- Accountability towards job done
- Ethical leadership and decision making practices
- Obeying the law of the organization
Importance/Advantage/Benefit of Management Ethics
Managerial ethics guides and directs management to practice ethical behaviour while handling different managerial affairs. Thus, it has high significance in management practice around the world. The importance/advantages/benefits of managerial ethics have been mentioned below:
- Helps in maintaining moral course at the time of troubles
- Cultivates teamwork spirit and productivity
- Supports employee growth through their fair and just treatment
- Develops attitude of discipline among employees
- Avoids nondisciplinary actions and lowers fines and penalties
- Assures organizational policies are legally compliant
- Builds and enhances strong public image or goodwill
- Focuses on ethical strategic planning, quality management and diversity management
- Guides on what is to be done and what is not to be done at the workplace
