Business ethics for managers is extremely important because it involves or is a combination of key assets like integrity, trustworthiness, and honesty. Managers have the responsibility of doing ethical things from a business perspective and ensuring everything is thought and executed in the best interest of all the stakeholders and the company in general.
Principles of Business Ethics that is Applicable for Managers Across All Levels
Managers, when given the responsibility of leading a team, need to be truthful and honest in their dealings. They are expected to provide correct statements and guide the team in the right direction.
Managers who are ethical usually demonstrate high levels of personal integrity. They tend to follow their convictions and do what they feel is right even when they are tempted to do otherwise. Managers who have high personal integrity are upright, honorable, and principled.
The role of ethics in management is immense. And this can be gauged from the fact that ethical managers are loyal and never disclose any information they have gained from confidence for their personal advantage. These managers usually demonstrate fidelity and remain worthy of trust. They also remain loyal to their colleagues and companies, all through their contractual period.
Managers who are fair do not exercise their power arbitrarily. They treat all individuals with fairness and have high tolerance levels. These managers are generally open-minded and admit if they are wrong and change their beliefs and positions when required.
Ethical managers tend to exhibit various qualities including autonomy, human dignity, and interest in all those who have contributed to the success of the company, rights, and privacy. These managers tend to be courteous and treat all employees with equal dignity and respect, irrespective of their national origin, race, or sex.
Importance of Ethics in Management
It is important to have ethics in management for various reasons. Some of these reasons are mentioned below:
An organization that believes in moral values and is driven by them is respected in the society. People tend to recognize these companies even though they may not be aware of the inner workings of the company or the business they are into. And it is people who build credible organizations.
Fulfilling basic human needs
One of the basic human needs is being fair, ethical, and honest. When an organization itself exhibits these qualities, employees desire to follow the same route.
Improved decision making
When a manager takes ethical decisions, it changes the course of his or her destiny in the corporate world. It is the same for organizations.
Leadership and uniting people
An organization that is driven by ethical principles and values is revered by the employees too. In fact, it is these values and principles that help bind all people together in an organization and strive for achieving a common mission or goal.
Gains for the long term
Ethically driven organizations tend to make profits in the long run, though they may have to deal with losses in the short run.