Reasons Why Managers Should Behave Ethically

Posted: August 25th, 2021

Reasons Why Managers Should Behave Ethically

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Reasons Why Managers Should Behave Ethically

Management ethics relates to the ability of a firm to be responsive to the environment. It explains the difference between the good and bad, as well, guiding the management team in their daily endeavors while running the firm (Harrison, 2005). Equally, ethics establishes a moral guideline that directs and governs the activities of the company employees or individual groups. Therefore, whenever a company employee or the management team is assigned the responsibility of the company business, it is always assumed they will deliver them ethically. This is because they can distinguish between what is wrong or right for both the company and society. The discussion undertaken in this paper is about the reasons why managers should behave ethically. Several ideas are advanced to support the argument while highlighting the advantages of ethics to the company management. Besides, a reflection on the question and dilemma of ethics in management is addressed as an examination of the avenues under which it is appropriate.

            The employees’ behavior,mainly management, is a reflection of the company. In this case, the manager should always be ethical to ensure that the company is represented in theright way. A poorly represented manager reflects or devalues the quality of a company. More so, in most cases, the character of a human being is a representation of the nature of the environment. In the same way, the other employees look upon the management to get direction on how they would behave (Treviño & Weaver, 2003). Thus, unethical administration implies the other employees will adopt the same behavior, which eventually causes the company to suffer ethically.Similarly, the stakeholders of a company are responsible for protecting the behavior of the management. As such, unethical managers in a company are likely to undermine the willingness of stakeholders to increase investment in the company. Moreover, unethical managers may not find it easy to interact with other companies, as they may be considered inefficient, ineffective and unreliable when it comes to improving the trading relationship of the company with others. Therefore, this would reduce the performance of the company and eventually reduce the ability to employee quality staff and fail the company at the end.

            Moreover, being ethical helps the company to comply with the law. An ethical business management implies that the company will be assisted to operate legally, that is, meeting the required standards of operation in its daily activities while it follows its clear aims and the objectives (Sandberg, 2008). In the end, everyone associated with the business will be satisfied. Equally, it is always good for companies to take consideration of the demands and interests of its employees, suppliers, customers and the environment as well as the public. These groups are critical to the company’s mainstay and determine its existence (Sandberg, 2008). Without an ethical manager, the primary considerations that are supposed to maintain these groups are likely to be adhered to, leaving the company in constant conflicts.Further, conflicts with different stakeholders are frequent because of varied interests in the company businesses. It requires ethical management that has earned its reputation to solve such conflict for the business to be successful in its operations. Similarly, unethical administration may tend to undertake shortcuts in the pursuit of profit, for example, underpaying its employees, ignoring their safety and engaging in contrabands(Treviño & Nelson, 2011). Once the law enforcers find such actions, the company reputation is badly reflected within the society and among its customers. In the same way, the company could be subjected to a costly process such as legal suits and fines that eventually dents its profitability.   Therefore, being ethical is being safe from encountering instances when the company is convicted of engaging in illegal activities, thereby saving the company reputation and engagement in costly affairs that can even fail its operations.

            Subsequently, managers are responsible for enforcing ethical behavior among employees. Managers are expected to provide leadership, which sets the tone for the whole company (Harrison, 2005). Hence, if they establish a philosophy that appreciates ethical reasoning, behavior, and practice, such managers are capable of providing employees with proper guidelines. The employees will be willing to practice what they have learned from the management as they observe it practically (BLACKBURN, 2019). However, if the management enforces certain ethical behavior and they are not reflected in their actions, employees are likely to follow suit. For instance, managers who talk about honesty and integrity, yet they fail to live by the same principles, end up reflecting poorly on their employees. In the end, such behaviors are dents the company reputation. Further, when an organization is created on an ethical foundation, it has a chance to create a lasting positive influence on society, which includes attracting talented employees, being appreciated by the community. Typically, skilled individuals often seek fair compensation for their dedication and quality work (BLACKBURN, 2019). They are asking for advances in their careersfollowing the quality of work they are capable of producing. Besides, such a team always looks upon the management to be trustworthy about the activities of the company especially when there are layoffs and reorganizations (Treviño & Nelson, 2011). Hence, the management team that has cultivated fairness in its operation stands a good chance of earning the trust and commitment of such individuals. Thus, the reputation of a business is determined by the ethical manner in which the management runs the business, which trickles down to building a strong relationship between the management team and stability in a company. 

            Lastly, the question of ethics sometimes is a dilemma among managers. Most of the managers still accept that ethical question is still far away from being achieved. There is room for further reflection and improve on being ethical. Because the extent to which one should claim ethics is not adequately defined. However, the discussion above reveals that explicitly making the ethics part of the company has the possibility of enhancing its reputation. Ethics helps the company achieve its sustainability in the long term. This is reflected in the ability to attract highly talented staff, which assures competitiveness in the quality of service and products. Equally, being ethical provides an opportunity for the company to earn the reputation of its key stakeholders, who will be willing to invest and support the company financially. However, all these are achievable when the management team can play and drive along the ethical lines that have been established by the company. Managers who pronounce ethics and fail to live by it can earn a negative reflection among the employee and the society as well.

References

BLACKBURN, R. (2019). LEADERSHIP, MANAGEMENT, AND ETHICS: in the face of public policy and social dialogue … an… analysis and review of critical essays. S.l: LULU COM.

Harrison, M. (2005). An introduction to business and management ethics. Houndmills, Basingstoke, Hampshire New York: Palgrave Macmillan.

Sandberg, J. (2008). The ethics of investing: making money or making a difference. Göteborg: University of Gothenburg, Acta Universitatis Gothoburgensis.

Treviño, L. & Weaver, G. (2003). Managing ethics in business organizations: social scientific perspectives. Stanford, Calif: Stanford Business Books.

Treviño, L. & Nelson, K. (2011). Managing business ethics: straight talk about how to do it right. New York: John Wiley.