Ethics Ethical Management IMMORAL MANAGEMENT What is immoral management When managements motives are selfish and it cares only or principally about its own or its companys gains ID: 272852
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Slide1
Business Ethics
Ethical
Management Slide2
IMMORAL MANAGEMENT
What
is immoral
management
?
When
management’s
motives are selfish and
it
cares only or
principally
about
its own or its company’s gains.
If
management’s activity is actively
opposed
to
what is regarded as ethical, this suggests that management understands
right
from
wrong and yet chooses to do wrong.
I
ts
motives are deemed
greedy
or
selfish.
M
anagement’s
goals are profitability
and
organizational
success at virtually any price. Management does not care
about
others
’ claims to be treated fairly or justly.Slide3
Operating Strategy
The operating strategy of immoral management is focused on exploiting
opportunities
for
corporate or personal gain
.
The
main
question
in
this
kind
of
management
is
“Can we make money with this action, decision, or
behavior
, regardless
of
what
it takes?”
Implicit
in this question is that nothing else matters, at least
not
v
ery
much.Slide4
Sourses of immoral
management
Egoism
Egoism
is
often
through
as
the
anti-
thesis
of
ethical
business
Our instinct for survival combined with
the
everyday
objective of being happy would suggest that the pursuit
of
self-interest
is a natural way to organise our lives
.
Each person ought to do whatever maximises their own
self-interest,
regardless
of how this affects others.Slide5
Egoism cont
we are all egoists in
the
sense
that all our actions are really motivated by a concern for our
own
long-term
best interest rather than any real feeling for the interests
of
others
.
w
e
might act to our short-term disadvantage but only
in
our
long-term best interest.
It
is even argued that we are
deceiving
ourselves
if we think we are acting in any other way!Slide6
‘Invisible hand’ egoism
‘Invisible hand’
egoism
is
a pragmatic view developed in Adam Smith’s
The Wealth of
Nations
(1776
).
The
argument is that if all entrepreneurs act freely in their
own
interest
then society as a whole
benefits.
Market
forces
channels
self-
interest
in
the
economy
so
that
egoism
becomes
beneficial
for
everyone
. Slide7
Paradox in
business
world
Some
business
ethicists
argue
that
there
is a
paradox
in
the
business
world
.
Some
of
these
scholars
are
Marxist
and
some
other
s
are
virtue
ethicists
.
Capitalist
economy
is
based
on a
certain
assumption
about
human
beings
.
This
assumption
is
that
human
beings
are
inherently
self-
interested
or
egoist.
It
is
this
inherent
feature
of
human
beings
that
leads
to
profit
in
business
world
. Slide8
Paradox in
business
world
cont
Self-
interested
individuals
are
regulated
by
an
invisible
hand
and
this
leads
to
profit
which
is
good
for
society
However
, self-
interest
and
egoism
is
also
the
sourse
of
unethical
behavour
.
This
means
that
business
in
capitalis
economies
leads
to
unethical
behaviour
.
Because
capitalism
is
motivated
by
egoism
…
How can
we
move
beyond
this
paradox
???Slide9
Integrity Strategy
Self-
governance
in
accordance
with
a set
guiding
principles
The
task
of
ethics
management
is
to
define
and
give
life
to
an
organization
’s
guiding
values
to
create
an
environment
that
supports
ethically
environment
To
instill
a sense of
shared
accountability
among
employees
Slide10
Integrity Strategy
cont
The integrity strategy is
characterized
by
a conception of ethics as the driving force of an organization
.
Ethical
values
shape management’s search for opportunities, the design of
organizational
systems
, and the decision-making process.
Ethical
values in the integrity
strategy
provide a
common
frame of reference and serve to
unify
different
functions,
lines
of
business, and employee groups.Slide11
Integrity Strategy
cont
C
ommon
features
of
an
integrity
strategy
:
Guiding values and commitments make sense and are clearly communicated.
Company
leaders are personally committed, credible, and willing to
take
action
on the values they espouse.
Espoused
values are integrated into the normal channels of
management
decision
making.
The
organization’s systems and structures support and reinforce its values.
All
managers have the skills, knowledge, and competencies
to
make ethically
sound
decisions on a daily basis.Slide12
Ethics programs
Ethics programs are typically organizational units that have
been
assigned
the responsibility for ethics initiatives in
the
organization
.
According
to
national surveys conducted, ethics programs typically include the
following
features:
written
standards of conduct,
ethics
training,
mechanisms
to seek ethics advice or information,
methods
for reporting misconduct anonymously,
disciplinary
measures for employees who violate ethical standards, and the
inclusion
of ethical conduct in the evaluation of employee performance.Slide13
Setting Realistic Objectives
Top management must establish sales and profit goals that are
realistic—goals
that
can be achieved with current business practices.
Under
the pressure
of
unrealistic
goals, otherwise responsible subordinates will often take the
attitude
that
“anything goes” in order to comply with the chief executive’s target
.Slide14
Ethical Decision-Making Processes
Many
decisions
management
faces turn out to have ethical implications or consequences
.
identify the action, decision,
or
behavior
that is being considered and then to articulate all dimensions of
the
proposed
course of action
.
the individual is asked to subject the course
of
action to what we call an ethics screen
.
An ethics screen consists of several
select
standards
against which the proposed course of action is to be compared. The
idea
is
that unethical actions will be “screened out” and that ethical actions will
be
“screened
in.”Slide15
Corporate Transparency
One of the most recent trends toward the improvement of ethics programs is
that
of
transparency.
Corporate
transparency refers to a quality, characteristic, or
state
in
which activities, processes, practices, and decisions that take place in
companies
become
open or visible to the outside world
.
According to Pagano and
Pagano,
a
transparent
management
approach
— “what you see is what you get” code of conduct—will increase
your
company’s
credibility in the marketplace, build loyalty, and help you gain
the
trust
and confidence of those with whom you work.Slide16
Workplace
Democracy
Recently
it is
believed
that
more
democratic
workplaces
leads
to
more
ethical
businesses
.
The
main idea of
the
workplace
democracy
is
that
the
business
organizations
become
more
inclusive
in
their
decision
making
.
Current
model of
business
creates
a
workplace
based
on
fear
.
This
due
to
the
command
and
control
models
.
Employees
have
a
voice
in
the
democratic
workplace
.
Democratic
workplaces
have
10
principles
in
their
design
Slide17
10 principles
of
democratic
workplace
Purpose
+
vision
Transperancy
Dialogue
+
listening
Accountability
Choice
Individual
+
collective
Fairness
+
dignity
Integrity
Decentralization
Reflection
+ Evaluation
Traci
Fenton
explains
the
idea of
workplace
democracy
:
http://www.youtube.com/watch?v=h28n2qPp74w