Question

Class, how can management best promote and enforce high ethical standards in their companies without compromising efficiency?

Answer 1

Ethics are the accepted principles of right or wrong that govern the conduct of the actions of an organization, an individual or the members of a profession. The business ethics must be based on fairness because the knock-on effects of adopting a strong ethical ethos will be helpful to business in the long growth and also will be beneficial for everyone in the long range. An ethical climate refers to a part of a company’s culture that centers on doing right or wrong. When management in a company demonstrate and demand highly ethical behavior, a ethical climate exists. The primary goal of putting company and ethics together is that company must constantly and continuously improve its business performance, actions, and consequences in order to increase revenue, make high profits, and increase the prosperity of its community by meeting the reasonable expectations of its stakeholders in pursuit of its goal as a business as a whole.

Centrality of ethics to managment without compromising efficiency involves:

--A positive influence dimension of management leads to have an impact on the lives of followers

--Power and control differences create enormous ethical responsibility to ethical climate for manager’s.

-- Respect for co-employees: sensitive to followers’ own interests, and requirements

--Mangers help to reinforce and establish company values - an ethical climate