The Importance of Ethical Management Essay Example

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