Ethical Issues In Management

access_time February 9, 2024
perm_identity Posted by Admin

INTRODUCTION

  • Managers experience ethical issues at the personal, organizational, trade/professional, societal and global levels. These issues arise between managers and their conflict with stakeholder groups such as customers, suppliers, employees, competitors, law and government, superiors, wholesalers, and retailers. 
  • The topic of ethics in management is a crucial one with which managers of today must be informed. 

ETHICAL PROBLEMS/ ISSUES FACED BY MANAGERS

  1. Conflicts of interest
  2. Managing people
  3. Work Force Diversity
  4. Effective communication
  5. Managing for ethical conduct in modern times
  6. Shaping the organization's ethical climate
  7. Workplace-Safety Issues
  8. Legal Liability
  9. Image Problems
  10. Adherence to Law
  11. Business Formation
  12. Issues of Cyber Ethics
    1. Privacy
    2. Property Issues
    3. Security Concerns
    4. Responsibility of Accuracy
    5. Accessibility, Censorship, and Filtering
  13. Workplace Violence

ETHICAL ISSUES IN VARIOUS AREAS OF MANAGEMENT

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A. ETHICAL ISSUES IN FINANCE : 

  1. In accounting – window dressing, misleading financial analysis.
  2. Insider trading, securities fraud leading to manipulation of the financial markets.
  3. Executive compensation.
  4. Bribery, over billing of expenses, facilitation payments.
  5. Fake reimbursements.
  6. Misappropriation of assets - the use of company assets for any other purpose than company interests in the practice of the profession.

B. ETHICAL ISSUES IN HRM :

  1. Employment Issues
  2. Issues related to Cash and Incentive Plans
  3. Issues related to Discriminations of the employees
  4. Issues related to Performance Appraisal
  5. Issues related to Privacy
  6. Issues related to Safety and Health
  7. Issues related to Restructuring and Layoffs
  8. Other issues like using forced labour, child labour,Longer working hours,Increasing work stress,Sexual harassment.

C. ETHICAL ISSUES IN MARKETING :

  1. Issues related to Market research
  2. Issues related to Target Customers and Market
  3. Issues related to Pricing
  4. Issues related to Advertising and Promotion
  5. Issues related to data Collection and Privacy
  6. Issues related to Distribution

D. ETHICAL ISSUES IN PRODUCTION

  1. There are ethical problems arising out of Use Of New Technologies that are harmful to health, safety and environment. This includes technological advancements like genetically modified food, radiations from mobile phones, medical equipment etc.
  2. Defective services and products or products those are innately DELETERIOUS like alcohol, tobacco, fast motor vehicles, warfare, chemical manufacturing etc.
  3. Animal testing and their rights or use of economically or socially deprived people for testing or experimentation is another area of production ethics.
  4. Ethics of transactions between the organization and the environment that lead to pollution, global warming, increase in water toxicity and diminishing natural resources.
  5. There are certain processes involved in the production of goods and a slight error in the same can degrade the quality severely.
  6. Usually many manufactures are involved in the production of same good. They may use similar or dissimilar technologies for the same. Setting a standard in case of dissimilar technologies is often very difficult.
  7. Social perceptions also create ethical issues sometimes. For example, the use of some fertilizer by cola companies in India recently created a national debate. The same cold drinks which were consumed till yesterday became noxious today because of a change in the social perception that the drinks are not fit for consumption.

E. ETHICAL ISSUES IN RESEARCH

  1. The principle of voluntary participation requires that people should not be coerced or forced into participating in research.
  2. Closely related to the notion of voluntary participation is the requirement of informed consent. Essentially, this means that prospective research participants must be fully informed about the procedures and risks involved in research and must give their consent to participate.
  3. Ethical standards also require that researchers should not put participants in a situation where they might be at risk of harm as a result of their participation.
  4. There are certain standards to be applied in order to protect the privacy of research participants.
  5. Increasingly, researchers have to deal with the ethical issue of a person's right to service.

BOOK REFRENCE ( CLICK TO BUY ) 

  1. Velasquez , M.G. : Business Ethics
  2. R.C. : Ethical Choices in Business 

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