ManagementAndEthics Mesa de trabajo 1

Management and Ethics

“We’re paying the highest tribute you can pay a man. We trust him to do right. It’s that simple.”

– Harper Lee, To Kill A Mockingbird

Over time, digital communication has allowed consumers to access limitless information on a company’s methods, objectives, and beliefs. As a result, now more than ever, consumers demand more from their preferred companies than only a good service or product. Fortunately, ethics management brings positive benefits to an organization as a whole.

What is ethical management?

Any individual who performs a managerial role establishes the tone for how the organization operates daily. Organizational ethics refers to societal values of truth and fairness that a manager adopts while making decisions. Management ethics in managerial judgments, concepts, and values determine how the organizational activity can reflect the moral character of the manager.

Why does good management require ethics?

Ethics are necessary for successful management. A code of ethics can help a company define and uphold acceptable conduct standards. In addition, a solid ethical framework may assist a company in navigating periods of elevated stress, such as fast development or organizational change, while also lowering a company’s risk of wrongdoing.

What role does ethics play effectively in management?

According to Domènec Melé, an Emeritus Professor in the Department of Business Ethics at IESE, ethics are not just advantageous but also required for genuinely excellent management. His studies argue that leadership is about people, and dealing with people involves ethics. As a consequence, successful management needs a solid ethical basis. It explores how ethics should be put at the center of excellent management and emphasizes the foundations of morality in management. 

Melé proposes that implementing ethical decisions contribute to good management through various positive results, such as:

ManagementAndEthics 03
Humanizing Business

Ethics extends beyond treating people well to boost efficiency and, as a result, financial results.

One of management’s primary roles is to perform duties through people effectively and efficiently. Therefore, managers should promote efficiency without sacrificing their ethical values; as stated by these principles, individuals in an organization should be treated according to humane standards. Ethics lead to a greater appreciation and respect for people.

Generating Trust

Ethics also aids successful management by fostering trust. Promoting interpersonal collaboration, team effectiveness, organizational development, personal credibility, networks, and organizational culture requires trust in any business. Acting with honesty and encouraging virtues inside the company are all aspects of ethics.

Promoting Loyalty

Prominent leaders consider loyalty the secret engine behind the organization’s development, profit, and long-term values. Employees loyal to the firm are willing to stay with it, work hard for the company’s success, and go the additional mile when necessary. 

Many different approaches can help to foster employee loyalty; this includes the management’s ethical behavior that employees perceive.  

Likewise, long-term customer relationships are well-known for their essential role in maintaining growth and profit sustainability. In addition, customers view appreciation initiatives more favorably when a firm reinforces an ethical reputation.

Reinforcing Moral Habits

If managers want their employees to act ethically, they must realize that it begins with them. The majority of employees follow management’s direction. Managers gain credibility when they hold themselves to a high level of ethical behavior and expect the same from their personnel. 

It’s simpler for the entire team to adopt the same ethical procedures when they are all on the same page.

Encouraging Responsibility/ Moral Imagination

Moral managers will not ignore circumstances when performing morally and generating a profit appear to be incompatible. Instead, they consider various possibilities and seek alternative courses of action that balance ethics and efficacy. According to Melé, encountering difficult situations allows managers to imagine all of the options in a given circumstance to solve an ethical problem, bringing, in addition, the capacity to put good ideas into action for the benefit of others.

Developing Ethical Organizational Cultures

Organizational cultures directly impact employees in terms of how they interact with one another and those outside the business. Through the consequences of ethical conduct on trust and loyalty, these shared values and expected behaviors that make up a company culture can provide competitive advantages. 

The development of trust-based organizations requires the implementation of trust from leadership. A leader’s moral behavior significantly influences trust, and company culture is critical for trust development.

ManagementAndEthics 02

Companies that succeed over time rely on their employees’ innovation and energy and their willingness and devotion. But unfortunately, managers cannot sustain such dedication if strategic decisions are unethical. That is why the manager’s personality is so important, especially when making judgments in which there are no clear choices.

It’s vital to remember as a manager that you can instill a feeling of responsibility and dedication in your staff by behaving as a positive role model, leading with an ethical mindset, and managing in a way that encourages good conduct. 

©️ 2022 PASconcept wrote and published this article. All rights reserved.

Share this:

Ana Aleman is a Marketing intern for PASconcept. She is currently pursuing a Bachelors Degree of Business Administration in Marketing from Nova Southeastern University, expecting to graduate in May, 2022.