Management s role in setting ethical standards

managerial ethics pdf

Ethics programs cultivate strong teamwork and productivity. From the CEO on down, managers have a responsibility in ensuring that both they and their subordinates behave ethically and in the best interest of both primary and secondary stakeholders.

role of ethics in management ppt

Then an ethical framework becomes no longer a burdensome constraint within which companies must operate, but the governing ethos of an organization.

This method focuses on the equitable and fair distribution of costs and benefits among persons and groups. Acknowledging the importance of organizational context need not imply exculpating individual wrongdoers. This legislation authorizes the Securities and Exchange Commission SEC to reward whistle-blowers at companies that are required to report to the SEC who provide information concerning violations of the federal securities laws.

Management s role in setting ethical standards

The law does not generally seek to inspire human excellence or distinction. They are willing to scrutinize their own decisions. The underlying model for this approach is deterrence theory, which envisions people as rational maximizers of self-interest, responsive to the personal costs and benefits of their choices, yet indifferent to the moral legitimacy of those choices. At the organizational level, the culture of ethical business practices relies heavily upon management's willingness to model the behavior and take personal responsibility for its implementation. There are three types of ethical codes: codes of business ethics, codes of conduct for employees, and codes of professional practice. Ethical conduct and support for the ethics program are also criteria in regular performance reviews. Many organizations establish internal processes through which employees can come forward if they suspect an ethical or legal violation has occurred. Ethical decisions can involve several determinations. Key Terms cognitive: Of the mental functions that deal with logic, as opposed to affective functions, which deal with emotion. The Sarbanes-Oxley Act requires that an individual blow the whistle on an employee who they have evidence has violated the law. Making ethical decisions also involves choice about who should be involved in the process and how the decision should be made.

Guiding conduct: Public signage often contains messages guiding conduct. What follows is a history, explanation and overview of business ethics and business law.

ethical behaviour of managers
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10 Benefits of Managing Ethics in the Workplace