Management Ethics
MANAGEMENT ETHICS
Submitted By:
Nitish Garg
PGDM I- B
84
Ethics is bedrock of every business firm. CEOs and a few at the top are undoubtedly the guardians of values of the firm. But collective human behavior defines the organizational culture. The culture determines the sustainability of the success of the firm and value creation to the society at large. Root cause of the failure of the organization is its sick culture rather than sick financial statements. Sick culture is the obvious result of the poor ethics in governance.
Now, what basically is Morality, Ethics and Ethical theory? Morality is concerned with the norms, values and beliefs embedded in social processes or behavior which results into actions. These define 'right' and 'wrong' for an individual and community. ''Ethics'' from a Greek word ''ethos'' which refers to character and individual behavior. Ethics is concerned with the study of morality and the application of reason to clarify specific rules and principles that determine right and wrong for a given situation. These rules and principles are called ''ethical theories''.
''Business ethics'' is no longer considered an oxymoron. The academic field of business ethics, has matured, business ethics find a place in B-School curriculum. The business community sees ethics and ethical demands as part of all its activities and as important for it to manage and to internalize. However, people are discontent generally about the visible decay in ‘ethical value' in business spreading its cancerous roots into every parts of the society. Unethical business decisions hurt many people including employees, customers and members of the general population as well as the business itself. Companies that are managed by persons who do not choose to do what is right are often the companies that do not survive for the long term. Organizations committed to long term success recognize the need to create a culture where ethical behaviors are encouraged and
Submitted By:
Nitish Garg
PGDM I- B
84
Ethics is bedrock of every business firm. CEOs and a few at the top are undoubtedly the guardians of values of the firm. But collective human behavior defines the organizational culture. The culture determines the sustainability of the success of the firm and value creation to the society at large. Root cause of the failure of the organization is its sick culture rather than sick financial statements. Sick culture is the obvious result of the poor ethics in governance.
Now, what basically is Morality, Ethics and Ethical theory? Morality is concerned with the norms, values and beliefs embedded in social processes or behavior which results into actions. These define 'right' and 'wrong' for an individual and community. ''Ethics'' from a Greek word ''ethos'' which refers to character and individual behavior. Ethics is concerned with the study of morality and the application of reason to clarify specific rules and principles that determine right and wrong for a given situation. These rules and principles are called ''ethical theories''.
''Business ethics'' is no longer considered an oxymoron. The academic field of business ethics, has matured, business ethics find a place in B-School curriculum. The business community sees ethics and ethical demands as part of all its activities and as important for it to manage and to internalize. However, people are discontent generally about the visible decay in ‘ethical value' in business spreading its cancerous roots into every parts of the society. Unethical business decisions hurt many people including employees, customers and members of the general population as well as the business itself. Companies that are managed by persons who do not choose to do what is right are often the companies that do not survive for the long term. Organizations committed to long term success recognize the need to create a culture where ethical behaviors are encouraged and