The Importance of Ethical Management

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The Importance of Ethical Management
Managing an organization is not an easy task. Along the road, managers may encounter various issues and therefore have to make difficult decisions while trying to stay a trusted organization. In many managerial situations, maintaining proper ethics in an organization can be considered complicated, yet it is essential not only to avoid legal violations, but also to maintain a reputable business and working environment. I plan to discuss the various hurdles and options that managers may face while leading an ethical company in the business world. In order for managers to succeed and make it in an organization, they must follow the four rules of ethics: the utilitarian rule, the moral rights rule, the justice rule and the practical rule. The utilitarian rule consists of “an ethical decision that produces the greatest good for the greater number of people” (Jones & George, 2007, P. 99). When making an important decision, managers should always take into great consideration how the outcome of such decision will affect the rest of the stakeholders. Being that the stakeholders of any company are considered more important to the business than its employees, many times it is necessary to make difficult yet necessary decisions that might not fully benefit employees. For example, many stakeholders tend to hesitate when doing business with a company in which its employees have a labor union. This is due to the high risk created by the demands and power which this gives the union and the employees who are a part of it which in some instances could potentially harm the company as a whole. Managers may be torn between keeping the labor union and its members and pleasing the stakeholders of the company. For the most part, the decision made places the stakeholders as a priority being that without them, the entire company would not be existent. The moral rule is “an ethical decision that best maintains and protects the fundamental or inaliable rights and privileges of the people affected by it” (Jones & George, 2007, P. 100). Managers should always use this rule when handling stakeholders due to the importance of morally protecting their rights. The dilemma caused by some issues in management is which side to accommodate. Being that ethics are mostly personal and moral choices made by the managers of a company, proper decision making will be impacted by the circumstances and the choice which can be considered the most adequate. The justice rule is one of ethical decision making regulations which can guide managers into deciding in a way which fair to all of those affected. Maintaining a balance between being a just manager and making the decision to benefit the organization can be quite complicated yet highly necessary when attempting to be an ethical leader. It may be tempting to cater to employees and stakeholders’ whose personality the manager likes best, yet it would not be considered fair or ethical. Finally the practical rule is when “a manager has no reluctance about communicating to people outside the company because the typical person in a society would think it is acceptable” (Jones & George, 2007, P. 101). When encountered with an ethical dilemma, the decision made by a manager should be one that can be recognized as acceptable and common to the rest of society because if not, then perhaps such decision is not in fact ethical or appropriate for the company. In many occasions, managers face the dilemma of handling products that can be harmful to consumer health. A company that produces cleaning supplies with harsh chemicals is legally obliged to display visible labels and warnings to advise consumers of the potential dangers that the misuse or accidental ingestion of such product can produce. Yet some companies have unethically attempted to hide how their products may or have damaged both costumers and employees alike. An example of unethical managerial decision-making can be...
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