What Are Management Ethics
Morality that pertains to the business world is normally called management ethics. Every company has its own ethical standards but the management ethics are more or less the same. These ethics are usually written codes, though literal ethical documents also exist. The main aim of this is to treat all employees fairly and equally.
It’s always believed that by following a moral and ethical code the company’s business will improve. When a management team adheres to certain ethical standards, employees are motivated and a also the work place environment gets motivated. Many companies update their ethical codes from time to time as a result of past experience. It is not uncommon for an organization to update it on a yearly basis. After the ethical document is updated, it is duty of every employee to read this and get updated knowledge about the same.
Every decision that is made on daily basis involves an ethical decision. Every manager must set a good ethical example for other employees. Some companies also offer specialized management ethics courses to managers which will usually be completed before accepting the job. If an employee is about to begin a new job, it is advisable that he or she makes sure that they know all about the company’s code of ethics.
Why does an organization need ethical culture? The answer is very simple; it means “Good Business”. By maintaining an ethical cultural any organization can have a good relation both internally and externally with its customers. If an organizational can inculcate successfully an ethical culture into its business, it is highly likely that the company becomes successful. If decision makers do not take into account the strategic significance of ethical standards they fail to run the business profitably and can cause potential damage to the company.
A person who understands the ethical value becomes an ethical leader. A true ethical leader has the ability to foresee consequences that enables him or her to make best choices so that they can take the business towards the goals. Many ethical leaders form their vision by adapting to moral rules. As the name suggests they are leaders who lead from the front. Being trustworthy often enables a person taking on ethical leadership to effectively build strong relationship with stake holders.
Management ethics can be summed up as values of honesty, integrity and fairness. Fairness in business transactions means being objective and having interest in creating a winning situation for both parties that is employer – employee or company – client.