CONCEPT OF MANAGEMENT ETHICS

Ethics is an individual's beliefs concerning what is right or wrong, good or bad. It is important to note that ethics are relative not absolute. Ethical behavior is in the eye of the beholder that confirms to generally accepted social norms. Unethicl behavior, then, is behavior that does not conform to generally accepted social norms.

Managerial ethics are the standards of behavior that guide the condect and thinking of managers. They generally occur in the organizational context. Actions of peer managers and top managers as well as organization's culture all contribute to the ethical context of the organization. The importance of ethics increases in proportoirr to the consequences of the outcome of a decision or behavior. A a manager's actions become more consequential for others, the more important are the ethics of that managers. When attemping to decide what is right or wrong, managers can focus on (1)consequences, (2)duties, obligations and principles, and (3) integrity.

(1) Consequences: When attemping to decide what is right or wrong, people can sometimes focus on the consequences of their decision or action. If no one gets hurt, the decision is ethical. Focusing on the consequences, the decision maker is concerned with the utility of the decision.

(2) Duties, Obligation and Principles: Another approach to making an ethical decision is to examine one's duties in making that decision. It is based on universal principles such as honesty, fairness, justice and respect for person and property. Rights for privacy and safety are also important. If a given decision violates one of these universal principles, it is automatically unethical even if nobody gets hurt.

(3) Integrity: Another criterion for determining the ethics of behavior focuses on the character of the person involved in the decision or action. If the person in question has good character and genuine motivation and intentions, he or she is behaving ethically. The decision maker's environment or community helps define integrity.