MANAGERIAL ETHICS Introduction The word ethics is derived from the Greek work ethos, which refers to the character and sentiment of the community, and standards of behavior. Ethical means conforming to the standards of a given profession or group. Any group can set its own ethical standards and then live by them or not. Ethical standards, whether they are established by an individual, a corporation, a profession, or a nation, help to guide a person’s decisions and actions. The commonly accepted definition of ethics is rules or standards that govern behavior. Managerial decision making is the type of behavior that managers are paid to do. They must make choices among alternatives and these may vary in terms of their perceived ethicality. The argument might be that ethics and morality ought to be kept as an exclusive part of religious and educational organizations. When morality intrudes on the business organization, it has a potential of diverting from the organization’s main objective, to make money, and as a result lead to deprive stockholders returns. But there is an increased realization that managers needs to be more responsible, not just to their stockholders but also to their other stakeholders - consumers, employees, suppliers, the government, and local communities. There is a need for ethics to be a part of management. We see business leaders taking bribes, being dishonest, biased toward age, gender, race, and ethnicity, and committing sexual harassment. There is a lack of moral integrity among business leaders and professionals. Many unethical acts also overlap with the law. One of those unethical act by American executives is bribery. Bribery is used to turn power to the advantage of the person offering. Before the passage of the Foreign Corrupt Practices Act of 1977, it was estimated that approximately 400 American companies paid millions of dollars in bribes for business favors. This act makes it illegal for companies to exchanging money or material goods for something in return. It is also affects ordinary citizens, because it raises the cost of goods sold. Despite the regulations against bribery, many parts of the business world consider it to be a normal practice. Exxon the well known oil corporation engaged in a bribe when the corporation paid $59 million to Italian politicians to further achieve business goals in Italy. Honesty, is anyone trully honest any more? Honesty is being truthful, regardless, but to some it can vary with the individual and the situation. It can have a great impact on business, customers, and staff. It is an important part of the product and service. Honesty can set good leaders apart from others. President Clinton can be used as an example. He was dishonest with America when telling us about the Lewinsky fiasco; lying under oath. What does this do to his character? How is he now perceived by others. His dishonesty could lead people to believe he as not been honest with other statements. A survey by U.S. News and World Report on honesty, reported that eithty eight percent of secretaries have told lies on behalf of their supervisors. In another survey of 2000, nearly one quarter watched bosses fake expense reports, one fifth seen information destroyed, and one third seen doctored time sheets. These people said they would not reveal their supervisor, to a higher authority, after all they have a part in determining their success in the company. No, not everyone is honest, but in the long run, honesty is the best policy. Dishonesty can come back to haunt you. Managers with honest reputations can reap the benefits with staff, and customers. Whether a president or a supervisor, honesty is best, and you can face yourself each morning knowing you did what was right. A nationwide survey of business ethics was conducted in 1997. It included 218 public administrators. Seventy percent of them believed that their organization was highly ethical, and sixty one percent said that ethics was a part of their day-to-day decision making. Public administration has more ethics resources than any other industry; fifty two percent of them had ethics training. Yet they had the highest incidents of ethical problems. Fifty two percent knew of ethical violations. Fewer than thirty one said they feel comfortable reporting misconduct. One third said the organization may sometime breach the laws. Some of the most common incidents were sexual harassment, lying on reports and lying to supervisors, and discrimination. In the United States, there are laws protecting against discrimination. The U.S. Civil Rights Act of 1964 protects citizens from employment discrimination regarding gender, age, race, nationality, and religion, and disabilities. Despite this, women are segregated in the workplace from top management positions. This invisible barrier is called the “Glass Ceiling” and is created by organization prejudices. Women are better educated and hold more jobs then ever before, but fail to reach leading positions in major corporations. Women represent more than 40% of the workforce, but hold less than 5% of the top jobs in corporations. And when they rise to the top, it is nearly certain that they will earn less than a man. When women have achieved high managerial positions, they are usually restricted to a less vital part of the company, like administration and human resource. With the increase of qualification and work performance by women, it may have been expected that more women move up more quickly. One reason may be gender stereotypes. That females can not generate as much competence in the managing role as men and that women should not be exercising power over men. Some feel women can not handle family responsibility and the long, hard hours of work in high management. Well, men have families too, and with many child care facilities, it makes it possible for men and women to handle building a career and raising a family. Managers already at the top are likely to have gender based stereotypes, especially older managers who went to business school when there were few female students. Perhaps at the times change, so will the percentage of women in top positions. Sexual harassment which is directed by a staff member by another, has become increasing in the news. This behavior is not only unethical but illegal. There are two types of sexual harassment: quid pro quo and hostile environment. Quid pro quo is when there is a request for sexual behaviors, with a promise of rewards or threat of punishment if they adhere to them or they do not. Hostile environment refers to the creation of an unpleasant and unwelcome atmosphere related to sex and interferes with job performance. Most harassment is directed at women by men; almost 90%. About 10% involve the harassment of men. The harassers of women tend to be older married men, and those of men are younger single women. The number of sexual harassment cases has gone up; as more women were entering the workplace, so were the number of cases. Many do not confront their harassers, for fear of the reprocotions. In many cases its her word against his. President Clinton can also be used as an example in this case a well. Paula Jones had accused Mr. Clinton of sexual harassment when he was governor of Arkansas. He was the leader of a state, in a powerful position, what could Miss Jones do? She finally spoke up years later to press charges, but it was her word against the presidents. The management profession is a people business. How they relate to people is very important. An effective manager must have the ability to understand people’s needs and to see their point of view. Management must uphold moral values, keep a good attitude, keep learning, keep changing, keep refining and defining, and keep communicating. Many managers take what ever course of action will best achieve their goals, regardless of the effects on organizational members, on the future of the company, or the society where they live. Also in managerial behavior, there seems to be a strong desire for power, wealth and the need to display material well being. This can be considered a factor of the ethical problems. Bibliography 1. Stephen J. Carrol, and Martin J. Gannon, Ethical Dimension of Management, Sage Publications, 1997. 2. “Is There Anyone Who Believes in Honesty?”, Denver Business Journal, volume 50, October 16, 1997, page 37. 3. “Integrity and Ethics in Public Administration”, Public Management, volume 80, October 1998, page 3. 4. “Women in Management: It’s Still Lonely at the Top”, Women’s International Network, volume 24, September 1998, page 78. 5. “Constructing an Ethic for Business Practice”, Business & Society, September 1998, pag Keywords: managerial ethics introduction word ethics derived from greek work ethos which refers character sentiment community standards behavior ethical means conforming standards given profession group group ethical standards then live them ethical whether they established individual corporation profession nation help guide person decisions actions commonly accepted definition ethics rules that govern behavior managerial decision making type behavior that managers paid they must make choices among alternatives these vary terms their perceived ethicality argument might that morality ought kept exclusive part religious educational organizations when morality intrudes business organization potential diverting from organization main objective make money result lead deprive stockholders returns there increased realization managers needs more responsible just their stockholders also their other stakeholders consumers employees suppliers government local communities there need part management business leaders taking bribes being dishonest biased toward gender race ethnicity committing sexual harassment there lack moral integrity among business leaders professionals many unethical acts also overlap with those unethical american executives bribery bribery used turn power advantage person offering before passage foreign corrupt practices estimated approximately american companies paid millions dollars bribes favors this makes illegal companies exchanging money material goods something return also affects ordinary citizens because raises cost goods sold despite regulations against bribery many parts world consider normal practice exxon well known corporation engaged bribe when corporation paid million italian politicians further achieve goals italy honesty anyone trully honest more honesty being truthful regardless some vary with individual situation have great impact customers staff important part product service honesty good leaders apart from others president clinton used example dishonest with america when telling about lewinsky fiasco lying under oath what does this character perceived others dishonesty could lead people believe been honest other statements survey news world report reported eithty eight percent secretaries have told lies behalf supervisors another survey nearly quarter watched bosses fake expense reports fifth seen information destroyed third seen doctored time sheets these people said they would reveal supervisor higher authority after have determining success company everyone honest long best policy dishonesty come back haunt managers reputations reap benefits staff customers whether president supervisor best face yourself each morning knowing what right nationwide survey conducted included public administrators seventy percent them believed organization highly sixty percent said decision making public administration more resources than other industry fifty them training highest incidents problems fifty knew violations fewer than thirty said feel comfortable reporting misconduct third sometime breach laws some most common incidents were sexual harassment lying reports lying supervisors discrimination united states laws protecting against discrimination civil rights protects citizens employment discrimination regarding gender race nationality religion disabilities despite this women segregated workplace management positions invisible barrier called glass ceiling created prejudices women better educated hold jobs then ever before fail reach leading positions major corporations women represent than workforce hold less jobs corporations rise nearly certain will earn less achieved high managerial positions usually restricted less vital company like administration human resource increase qualification work performance been expected move quickly reason gender stereotypes females generate much competence managing role should exercising power over some feel handle family responsibility long hard hours work high management well families many child care facilities makes possible handle building career raising family already likely based stereotypes especially older went school were female students perhaps times change will percentage sexual harassment which directed staff member another become increasing news only unethical illegal types quid hostile environment quid request behaviors promise rewards threat punishment adhere hostile environment refers creation unpleasant unwelcome atmosphere related interferes performance most directed almost about involve harassers tend older married those younger single number cases gone were entering workplace number cases confront harassers fear reprocotions cases word against president clinton used example case well paula jones accused clinton governor arkansas leader state powerful position what could miss jones finally spoke years later press charges word presidents profession people relate very important effective manager must ability understand needs point view must uphold moral values keep good attitude keep learning keep changing refining defining communicating take ever course action will best achieve goals regardless effects organizational members future company society where live seems strong desire power wealth need display material being considered factor problems bibliography stephen carrol martin gannon dimension sage publications anyone believes denver journal volume october page integrity public administration volume october page still lonely international network volume september page constructing ethic practice society september Keywords General: Essay, essays, termpaper, term paper, termpapers, term papers, book reports, study, college, thesis, dessertation, test answers, free research, book research, study help, download essay, download term papers