Ethical Issues in Management 1

Running Head: Ethical Issues in Management

Ethical Issues in Management

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Ethical Issues in Management 2 There is a fierce amount of competition among businesses nowadays. Every company is experimenting new and innovative ideas and strategies to edge past its rival company and attract as many customers as it can. This increased amount of competition only means added pressure for managers to meet their targets and satisfy their bosses and the shareholders of the company. This sometimes puts managers in difficult situations where they have to choose the best possible strategy to meet their targets without considering the ethical implications of their choice. Ethics are the morals and values that guide the behavior of an individual in deciding what is right and what is wrong. Something might be legal but it might not be ethical. For example advertising directed at children is considered legal but it might be considered unethical. Bribing public officials to get a public contract is illegal and unethical in the UK but this is normal in other parts of the world. Managers have to face several ethical issues at workplace today. I will be elaborating on a few of them. Employees may be tempted to use unethical methods of gathering information about their competitors and make use of that information for the benefit of their own companies. This may result in extremely confidential data being disclosed to rival companies. Another ethical issue is the misuse of company assets. Company assets should ideally be used only for the fulfilment of its objectives and not for any personal use by its employees. Companies often try to increase their market share by means of misleading advertising which is widely considered unethical. Companies by doing this seek to differentiate their product and build huge expectations in the minds of the consumers which are not always lived up to. It is considered unethical for companies to make donations to political parties. Companies should try to remain free of any political influence in order to meet the needs of its consumers efficiently. Organisations set up to protect animals from being mistreated may contend that the export of live animals and testing on animals is unethical.

Ethical Issues in Management 3 However many companies now do consider social responsibility as a vital part of their organizational culture. There are several areas where companies can become socially responsible. Companies can promote a culture that encourages employees to look for alternative ways of production that conserve energy and minimize pollution. This can mitigate the effects of global warming. Companies can also promote a culture of honesty and integrity that promotes fair dealing with customers and suppliers. When dealing with customers it should be made sure that products meet the needs of customers in terms of quality, safety and durability. Business organizations should also engage in community involvement by working together with NGOs in the education or health sector, provide relief in times of natural calamities and setting up foundations to help the needy. The phone-hacking scandal of the now defunct British newspaper News of the World is a good example of how ethical values are violated in fulfilling professional commitments. The story made headlines when it was reported that the voicemail messages of a murdered schoolgirl Milly Dowler had been hacked. This resulted in the closure of the newspaper. A public inquiry was launched to investigate the affairs of the newspaper. Several prominent figures including the chief executive of News International Rebekah Brooks were forced to resign and several others were arrested. Rupert Murdoch, the Chairman and CEO of News Corp, directly apologized to the British public for the phone-hacking scandal.

Ethical Issues in Management 4 References:

Jewell, B. (2000). An Integrated Approach to Business Studies. 4th edition. Longman. Hosmer, L. T. (2010). The Ethics of Management. 7th edition. McGraw-Hill/Irwin. Reuters/ http://www.reuters.com. (2011, December 7) Timeline: News Corp and the phonehacking scandal.