1.

5 Management ethics
1.6.1 Definition
Joseph Fletcher (1996:12) defines management ethics as standards of behaviour that
managers have to observe. It relates to the philosophical policies, procedures and actions a
manager adheres to, to enhance objectives. Although there may be a high degree of consensus
in society as to what constitutes ethical behaviour (honest, fairness, financial probity, etc.)
there are sometimes questions about how to apply these in practice, particularly where ethical
obligations may conflict with each other.
1.6.2 Development of individual ethics
The developments of individual ethics are in three stages, namely:
 Stage 1. Preconventional where the individuals look out for one’s own interest and
rules are followed out of fear.
 Stage 2. Conventional where the individual considers the interest and expectations of
others in making decisions and rules are followed because it is part of belonging to a
group.
 Stage 3. Post conventional where individuals follow personal principles for ethical
dilemmas, though one considers personal, group and social interests before making
decisions.
There are three alternative routes or approaches to follow in making moral decisions. These
are the legalistic, the antinomian, and situationism.
 Legalistic approach: With this approach a manager enters into every decision making
situation with a whole apparatus of prefabricated rules and regulations. Not just the
spirit but the letter of the law reigns.
 Antinomianism approach: This is the approach with which one enters into decision
making situation armed with no principles as one has to rely upon the situation to
provide ethical solutions, hence, the term antinomianism is literally against the law.
 Situationism approach: The situationist enters into every decision making situation
fully armed with the ethical maxims of his or her community and its heritage, and one
treats them with respect as illuminators of one’s problem. Therefore, compromise can
be made by setting aside the ethical maxims if love seems better served by doing so.
1.6.3 Principles of ethical behaviour
In view of the above three ethical principles, the principles of ethical behaviour that managers
can adhere to are:
  Always to act within the law.
 Do as you would be done by.
 Not to pursue one’s own interests at the organization’s activities.
1.5.4 Other influences of ethical behaviour
 The level of competition.
 The organizational culture.
 The degree of dependency between organizations and individuals.
It is in this regard that management ethics is important for managerial problem solving and
decision making