The Manager’s Proper Decision in Business Ethics
Values, morality and ethics are used in a variety of loosely connected context. Values are specific desires for objects or beliefs perceived as important, whereas ethics is a more general term that refers to conceptions of human welfare and the promulgation of principles to enhance human welfare. Morality, further, usually refers to traditional beliefs of proper and improper conduct that have an historical context of years or centuries. (, 1988)
The philosopher's interest in morality and moral issues and judgments is neither descriptive nor clinical. Rather, the philosophical thinking about morality comprises contemplation about the shape and the substance of moral judgments. (, 1988)
In business administration, such aspects are very important because the decisions in the business context involve assessments of conduct and character, the practical disciplines in such administration share the lingua franca of normative language like right, wrong, should, good and bad and the business administration, as ethics, at times relates not only to judgments regarding actions but also the motives and character traits that influence those actions. ( & , 1990)
These are simply put as the business ethics, a philosophical thinking about issues of morality in business, including moral problems and judgments which are necessary to address the ethical issues that may arise in a competitive, economic environment. Similarly, such issues are also similar to those raised by any human activity. Moreover, as a result of fundamental changes in societal attitudes about the proper conduct of business organizations, great public interest in business ethics arises. ( & , 1990)
The factors such as the growing inability of the market mechanism to govern many business decisions and activities because firms have become so large and powerful; the growth in government constraints and involvement in business firms' activities; the concern about certain issues such as environmental protection which are not normally regulated by the market; and the emergence of "quality of life" issues which are of high priority among society's social values have contributed to the increased public concern regarding business values and ethics. (, 1988)
Additionally, firms have become larger and more bureaucratic which often inspires less concern about the proper conduct. This lowers the standards of employee behavior which is also fueled by the industrial restructuring where inevitable pressure tightens budgets and increase profits. (, 1988)
Since the daily conduct of business raises personal ethical issues similar to those raised by any other human activity, business ethics, in short, is a topic worthy of the executive's or manager's special consideration. Further, business firms deal on a daily basis with the myriad subjects of ethical significance such as the employer and employee rights and duties, marketing ethics, corporate social responsiveness and improper conduct in the firm. ( & , 1990)
This urges that the business executives and managers address the problems and dilemmas that pose conflicts among their various constituents. Among the managerial responsibilities, those defy the business as usual resolution is the most difficult because it poses distinct conflicts. Also, the manager’s economic responsibilities to his shareholders, suppliers and lenders conflict with his duties owed to society or with that manager's own values or moral beliefs. Thus, the careful evaluation of the impacts of decisions and the balance of the various constituent interests whether in the context of near-term or long-term effects is an integral part of the firm's management process. ( & , 1990)
The process of balancing the constituents’ interests is very important in the business because managers who ignore consideration of these constituencies may ultimately inflict significant harm on their firms and themselves. Because of such reason, it is essential that the manager review all sides' viewpoints. On the other hand, there is no assurance that all constituents will be satisfied because of the mutually exclusive nature of the competing demands. Therefore, the crucial duty of the manager is to balance these various responsibilities to constituents in an ethical manner while attempting to provide a reasonable profit to the shareholders. ( & , 1990)
In most cases, by relying on general principles of fairness, promise-keeping, loyalty, obeying the law and avoiding harm, a manager can make a proper business conduct decision. In the more difficult decisions, however, such principles may conflict or may be inappropriate in resolving the issue at hand. But, by answering the three questions such as what are the responsibilities at issue in each situation, what standards should guide the conflict's resolution and whose judgment should prevail in the situation-the manager's colleagues, the firm's or that of society may assist managers in resolving these various issues. ( & , 1990)
Consequently, this careful analysis usually pinpoints the manager’s key responsibilities. Thus, this will provides him the standards for decision-making. On one hand, the manager must examine his or her own assumptions about leadership in answering the third question. (, 1953)
By doing so, he will know what kind of leader he is, a personal leader, an institutional or a political leader. A personal leader will be inclined to believe that his or her values should control. Institutional leadership relies on common values infused in the firm usually manifested by the manner past decisions have been promulgated while a political leader usually exhibits more flexibility than presumption in seeking compromises. (, 1953)
Likewise, by creating policy instruments in codes of conduct which provide guidelines in areas such as corporate disclosure, compensation, fair pay and employment opportunity, privacy, freedom of expression, the environment, workplace safety, ethics in advertising, product quality and corporate social responsibility, managers may also respond to the need for making proper decisions and establishing values. (, 1953)
By asking the question, what are the agendas and strengths of those groups, will give the managers an insight into the changes and the probability of having to alter policy and goals in response to the constituencies. However, answering this query requires a political analysis at two levels such as determining the group's goals and strength as a political player and examining the broader implications of the various political strategies a firm could adapt in a particular situation. ( & , 1990)
The management response’s in this can be precise or a hybrid of the two whether it is formulated at the top or at a lower level. But, the clear decisions and the provided benchmarks assessing the future performance are evidences that the firm has seriously considered the issue. The flexible goals, also, permit managers to respond to developments as they arise and not commit the firm to a course of action that may prove regrettable. ( & , 1990)
In general, the managers can effectively use a number of general approaches to difficult business, moral or ethical problems in order to reach proper decisions. Each of these approaches suggests a critical question that the manager can use as a test of the correctness of proposed action. ( & , 1990)
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