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Ethical behavior is linked to a management behavior by classifying response of mangers to a series of illustration as by the ethical theory represented by a response. The illustrations represent ethical dilemmas in various areas such as
Conflict of interest
Personal integrity and
Values or ethics have been dealt from various perspectives in management literature. Writers have focused on business environment and have provided advice for giving the importance of ethical aspects of business behavior. Some have discussed the teachings of ethics to present and the proposed managers. There is growing studies on concerning investigation on ethical beliefs and behaviors of mangers and enterprunal and settled businesses.
Little effort has been made to try to link ethical theory to management behavior. This connection would be really helpful in understanding the values held by mangers as well as in providing the basis for altering behavior in more ethical direction if such a change is deemed to be in the best interest of the society. The purpose of the ongoing study is to make it an initial attempt at providing such a linkage. The writers believe that the study of business ethics has suffered because of the empirical research and much of the non-empirical writings lack of theoretical basis. The philosophy provides a set of well developed ethical theories; business researchers have made little use of them. There are potentially two reason of this shortcoming: there appears to be a general lack of understanding for ethical theories as relevance to business research or ethical theories are so difficult to operationalize. (htt1)
Standard of ethics play a very vital role in protecting company's assets
A good indicator of high levels of organizations, and hence, workers ethics is how well they protect their company's assets. The one who will take pride in this company's standards of ethics reflect that pride in a respect for assets.
workers who will be treated with respect and dignity , who takes pride in their organization's ethics, respond to respect the assets of that organization. Few of the most witnessed indicators of the workers' opinion of their organization are their work of conduct.
Employees having pride for their co-workers and organization will avoid such practices as
1. Padding of labor charges and expense accounts
2. Personal and long distance calls on company accounts
3. Untidy work area, rest rooms and break areas
4. Taking office supplies home
5. Excessive breaks or sick days
6. Improper use of computer equipment and copy machines
There are all forms of theft. Addition to this, equipments and lost supplies, a person with less organizational or self- pride can give that organization to losses in production, time, initiative, overhead charges, professionalism, reputation, customer respect, attitude, drive and spirit.
Everyone can play a vital role in making an environment where employees are valued as each person and treated with dignity and respect, equality and fairness, where they perform with unquestionable integrity and ethics. In this kind of environment, employee pride blossoms and theft losses disappear.
The global and historical importance and understanding of religious views on the ethics of business is sometimes misunderstood and underestimated and if go with the standard introductions to business ethics by Dr. Todd Albertson who has written a book on The Gods of Business book. Specifically in the Middle East and Asia, cultural and religions have a very strong influence on the way the business is conducted and the creation of values for business.
Examples include: (htt2)
Islamic banking, related with the avoidance of charging interest free loans.
Traditional Confucian disapproval of the profit-seeking motive.
Quaker testimony emphasis on fair dealing.
Ethics often dominate the understanding of social arrangements, politics, social context, history, social processes and structur constituting for individuals actions and rights. Issues taken as ethical dilemma by people who are called business ethicists and are always quite narrow in scope, for example behaving politely always with customers, following standard office etiquettes, protecting privacy of the company and employees, avoiding any kind of discriminations, bribery etc., while issues like inequality among global labor, ethics of lobbying, intellectual property alienation, bio-piracy etc., are broadly neglected. The term ethics says different thing to people oriented differently. Ethics are quite an arguing subject. People have different opinions. The difference is not just a matter of talking about different things in different ways about the same thing. In fact, these different methods of talking about ethics like to be talking about different things, these are different prospective of imagining ethics. Business ethics is thought to be thing that does not trouble basic assumptions about the normal circumstances of business. Rather than looking at the politics the corporate firms play a vital role in modifying rules of diluting labor laws, accounting practices, weakening regulatory mechanisms etc., and it tends to look at the ethical collapse of firms as if they were single instances of individuals slipping away from their responsibilities of ethics. Next, Business ethicists often forget the actual goal of being ethical. They try to convince that being ethical serves a strategy of maintaining a good image and sustained profit making. Many others believe that being ethical and making profit are equally right goals of firms, some others say being ethical is just for the sake of being ethical Further, Ethics, when redesigned as business ethics it suffers the fate of business expediency thus business ethicists prepare themselves in advance for unambiguous quick and standard answers where as ethics is not a matter of stable solutions but one of eternal difficulty and openness and beyond the limits of normativity
It's not that everyone supports policies of corporate that govern ethical conduct. Some do claim that ethical problems are better handled by depending upon employees to use their own personal judgment.
Others strongly believe that business ethics policies are primarily rooted in utilitarian concerns, and that they are majorly to embroider the company's legal liability, or to increase public favor by giving the impression of being a good corporate citizen. In ideal situations, the organization will avoid a lawsuit because its people working there will follow the rules. If there is a problem and a lawsuit occurred, the company can claim that the problem would not have arisen if the people had followed the code properly.
"If you have integrity, nothing else matters. If you don't have integrity, nothing else matters." -- Alan K. Simpson
In the research study, "Does Business Ethics Pay?" it was found that companies displaying a "clear commitment to ethical conduct" persistently performs better then companies that do not display or are very poor in ethical conduct. The Director of IBE, Philippa Foster Black, stated: "Not only is ethical behavior in business life the right thing to do in principle, we have shown that it pays off in financial returns." These writings deserve to be considered as a vital insight for organizations striving for long-term success and growth (Moment)
Benefits of ethical practices in business
Customers do favor business which demonstrates ethical issues and ethical responsibilities. Companies that do not practice good ethical behavior can have lots of potential risk to loose market share and popularity which in effect reduces revenues, profit and investments. Good corporate citizen also enhances overall business performance, improved competitive advantage, higher financial returns and better reputation.
Good ethics helps in retaining best employees. Bad employer means no more good staff and reduces the likely hood of attracting best people in the market. This will increase the costs and underlines performance. If a business need be best, it has to have best people working for it and it cannot be achievable without best practice of ethics. To achieve these goals, a value oriented code of conduct is the necessary first step toward greater consideration of ethical issue during the decision making process.
Efficiency in employs
Integrated, socially responsible and globally recognized staffs of any organization are less prone to attrition, stress and dissatisfaction. Happy efficient people are a common scenario in highly successful organization. This can free up enormous amount of energy for task accomplishment. The result can be greater power and influence in the market place.
Market place of an organization
It may take ages to build a market reputation of an organization. Ethically responsible organizations are less prone to any disasters. Ethically responsible organizations will automatically know how to deal with it quickly and honestly. Peope and government tend to do forgive organizations who are genuinely trying to do right thing.
Attract foreign investors.
Investors completely investigate and study the company they are going to invest in. Very few invest in organization which lack integrity and responsibility and where there is no practice of ethics.
Hardly any leader would prefer to be remembered for doing something good, rather than making a pile of money, or build a great big empire. It's human nature to be good. Mankind would have not survived if it would have not. The ethical practices are fundamentally changing the view of what a life time legacy should be and can be.