Managerial ethics

Ethics in business requires diligence and hard work. The entire organization needs to be on the same page in order for people to make ethical decisions. It is important to create codes and principles to guide people. The ethical principles and codes that the company uses, however, should directly reflect the needs of the business.

When building an ethical business it is important that the roles and responsibilities of each member of the company are clearly outlined. An organizational chart will help determine how an ethics program will run. There will need to be a chain of command overseeing the ethics program. The interrelationships of these roles should be established along with the ethical standards that must be embraced at every level. Remember that business ethics begin at the top of the organizational chart.

Managers have a responsibility to behave ethically and manage ethically. They set the example for all employees and will determine how effective ethics management can be. Ethical management provides a number of benefits, both to the company culture and the financial gain of the organization.

Ethical management balances the different responsibilities of modern business organizations.
Responsibilities:
•Profit: All companies are responsible to make a profit in order to survive and fulfil their other obligations.
•People: This includes employees, customers, shareholders, and the community.
•Planet: Sustainability and the preservation of resources is a growing responsibility for businesses.
•Principles: The ethics that govern the organization will help the company to act ethically in every area.

There are many different characteristics of ethical management. There are three traits, however, that people identify with ethical management:
•Integrity: The manager behaves with integrity and leads by example.
•Transparency: The company and its managers are transparent and do not hide their actions.
•Utilitarianism: The organization and manager consider the happiness of the people involved in the organization.

Because ethics and values are extremely personal, it is difficult to ensure that all employees will practice ethical behaviour. There are ways to promote ethical behaviour, however, by simply instilling a few basic rules: Develop an ethics management program, Develop a code of ethics, Develop a code of conduct and create policies and procedures that reflect the company ethics.

It is not enough to simply create codes, programs, policies, and procedures. All rules must be enforced in order to be effective and curb unethical behavior.

However, it is also important to know that employees will act unethically from time to time. It is important to be able to identify unethical behavior and address it. A successful manager should also be able to prevent poor behavior and intervene before the behavior escalates.

Stress can take its toll on employees, who will occasionally act out at work. When unethical behavior begins, managers need to identify it as soon as possible. Allowing unethical behavior to continue will have long-term consequences for the company.

Typical Unethical Behavior include, abusing sick leave, lying to customers, cutting corners and covering up mistakes.
The behavior may seem minor; most people are guilty of at least one these incidents. These minor lapses in ethical judgment, however, can lead to more unethical behavior later. Preventing unethical behavior is much easier than dealing with the aftermath. A tactic that can prevent unethical behavior is improving job satisfaction. Employees often react to situations they feel are unfair.

Unethical behavior needs to be addressed carefully. It is important to discuss the situation face-to-face. If the behavior specifically violates company policy, remind the person about the policy. If the situation is a grey area, you may have to explain why it was not ethical. Approach the situation calmly, and allow people to explain their actions. Do not jump to conclusions, and understand that people sometimes need guidance making ethical decisions. Should unethical behavior continue, take the necessary disciplinary action.

Workplace interventions occur when people are concerned about the welfare of their co-workers. Interventions are usually used to help co-workers with addiction problems such as alcohol or drug abuse. They can also be held when assisting co-workers to deal with unethical behavior specifically committed at work. There are certain steps that need to happen if anyone chooses to hold an intervention.

•Call an interventionist: A professional is needed to handle the situation.

•Create an action plan: Plan how the intervention should go.

•Meet: Have the group meet together beforehand to iron out details.

•Intervention: Hold the intervention for an hour or two, and dialogue without judgment.

•Treatment: Help the co-worker find treatment if he or she decides it is necessary.

•Prof. Akindotun Merino is the CEO of Jars Education Group; a Professor of Psychology and a Mental Health Commissioner in California.

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