MGT251
Lesson 4 Essay
In the day to day operations, business managers face pressures from a myriad of sources; schedules, production problems, suppliers, and upper management to name a few. In working within this environment, managers must have a comprehensive understanding and practical knowledge of ethics to guide them as they address issue after issue. The ethical pressures faced by managers can be broken down into five categories, and the five ethical pressures managers face are from customers, employees, creditors, competition and owners.
Customers are the life blood of a company, without someone buying the product, a company won’t survive. As such, customers exhibit pressure on the company to have the lowest prices and the highest quality. Management must seek a delicate balance between what it takes to produce the products, what they charge for their products, while also monitoring what is being charged by their competition and meeting profitability goals set forth by owners or shareholders. Having high ethical standards in regards to customers fosters trust, satisfaction, and adds value to the product being sold.
Employees are the instrument through which planning, resources, and skill produce the product for the customer. Having an energized, competent workforce is extremely important, therefore employees have the power to pressure management for better wages, higher benefits or better working conditions. Interacting with employees through a clear, concise ethical manner builds loyalty and satisfaction, leading to better performance and higher production.
Creditors pressure managers to pay their bills on time and as per the contracted amount. If a company suffers through a low sales period where the inc...
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...interest rates, more flexibility in types of loans and payment schedules. Ethical treatment of the competition will tie back into customer loyalty and an increase in brand recognition and quality. Interaction governed by ethical principles will result in fewer problems, leaving owners free to grow the business.
Ethics for a solid foundation for a business to operate and grow. There will be problems, yet by following a strong ethical foundation, the company should admit to the mistake and take immediate action to rectify the situation. In doing so, the company has a strong chance to minimize negative press, and in most cases, emerge from the incident stronger, and in a better position for the future.
Identify, explain, and discuss the five ethical pressures that managers face. What can management do to manage these ethical pressures and improve business ethics?
Effective organizations are able to clearly define their ethical expectations by setting high moral standards, writing codes of conduct, and utilizing mentoring programs. “Masters provide your servants with what is right and fair, because you know that you also have a Master in heaven” (Col. 4:1). When organizations clearly define their ethical expectations to their subordinates, they are much more likely to treat their customers fairly. Customers who are treated fairly are much more likely to be loyal consumers of the products or services that the company provides. This helps to establish a loyal customer base that a business can depend upon, thus providing a predictable source of annual revenue. If an employer treats their employees with respect, honesty, and with candor they’ll give the customer 110% (Rion, 2001).
...es, their managers, and their employees all act accordingly and fairly when selling products in the market place. According to Hekman (2011) in 2010 alone the BBB received over 25,000 complaints from consumers and success rate nearly perfect at 84% for creating a binding resolution for the consumer. This shows that it can help shape ethical behaviors in business, by working with managers and clients to create a mutual understanding of expectations from the general public of a company.
Ethics or rather morals entail mechanisms that defend, systematize as well as recommend conceptions of right or wrong. Many organizations develop ethical codes to ensure employees and employers understand the difference in doing good or bad. In that respect, ethics are an essential aspect of successfully running of any organization or government. Ethics ensure employee’s productivity levels are up to the required standards. It also assists them to know their rights and responsibilities. Additionally, employers, as well as any persons in management, are guided by them to ensure they provide transparent leadership. Ethics also defines how customers should be handled. Ethical codes govern the relationship between customers and an
The behaviors addressed in this article are essential in the aspect of ethical decision making in management area.
Business ethics is one of the most important aspects of business. It consists of the moral/underlying principles of conduct that must be practice...
In today’s global society, a Code of Ethics policy is used to label established, acceptable behaviors among that industry’s business associates, potential investors, and the corporation’s executive officers and employees, and most important, the consumer (Ethics Resource Center, 2003). In an attempt to promote an increased efficiency and productivity potential level, among employees and prospective clients, a corporation’s standard Code of Ethics should guide its members toward a more in-depth examination of their personal moral activity, and how these actions affect the people or acquaintances they encounter. A company should utilize this strategy as a model for the professional behaviors and responsibilities of its constituents, and proves the occupational advancement of that business. Ethics are important in every level of a corporation, but specifically in the day-to-day actions of its members, and the image the company broadcasts to its associates is fundamental in building a stable business foundation. These pledges are a vital communication tool used to covey the firm’s standards for business operations, and predominantly, its relationships with the surrounding communities (Ethics Resource Center, 2003).
Ethical issues in business arise because of conflicts between an individuals personal moral philosophies and values and values or attitudes of organization in which a person works and a society in which one lives. Ethical issues can be identified in terms of the major participants and functions of business. Ethical issues related to ownership include conflicts between manager’s duties to the owners and their own interests, also separation of ownership and control of business. Financial issue includes, for example, the accuracy of reported financial documents. Ethical issues can acquire between manages and employees, then employees are asked to carry out assignments they consider unethical. Consumers and marketing issues are related to providing safe desired products for a fear price and not harming people and an environment. Accountants also face ethical dilemma, they have to deal with competition advertising commission. All of this places the accounting profession in situation of ethical risk.
In Module 1, Kindred Todd faced quite a few ethical dilemmas that included her values and technical ineptness. The first predicament was tested her personal morals and ethics. According to, Cumming and Worley, OD practitioners are dealing more and more with value conflicts with powerful outside groups (Cummings & Worley, 2008). Kindred was immediately faced with the issue of knowing what was ethically correct but being told the unethical approach was the best in order to benefit the client and her job security. Although compromising is one of the many skills of organization developers there are still morals that should be followed on each assignment. Kindred, know that deceiving the clients was unethical, took the first step to working on behalf of the client and immediately involved her superior, Larry, to resolve a potential conflict In the project. While her actions went in vain when she told her boss to remove her from the project and provide the client with a more qualified resource, Kindred did what she thought to be the best approach.
Marketing is a system of business activates designed to plan, price, promote and distribute want-satisfying products, services and ideas to customers in order to achieve business objectives. Consumer law protects consumer’s rights in the marketplace as well as fair trading, competition and accurate information. On the other hand, ethical aspects of marketing are about making marketing decisions that are morally right. However, consumer law and ethical aspects of marketing have a lot of advantages and disadvantages in the marketplace, which impacts business 's sales and growth like it happened to: Harvey Norman, Nurofen, apple, etc.
Garsten, C., & Hernes, T. (2009). Ethical Dilemmas in Management. New York: Taylor & Francis Group.
Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.
In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.
Treviño, L. K., & Nelson, K. A. (2007). Managing business ethics: Straight talk about how to do it right Fourth ed., Retrieved on July 30, 2010 from www.ecampus.phoenix.edu
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
...al nature of a business but so will customers. A high level of ethics in business should always be in place for customers. The customer should be considered a top priority when it comes to ethical business practices. In the long run, a company will reap great profits from a customer base that feels it is being treated fairly and truthfully. (Ethics in the Workplace, 2006)