Managers must understand their own ethical standards thoroughly if they wish to be effective in their careers

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Student Number as per Student Card: 10375436
Course Title: MBA - Marketing
Lecturer Name: Eileen Corrigan & Eddie McConnon
Module/Subject Title: Personal and Professional Development
Assignment Title: Discuss critically the following statement: ‘Managers must understand their own
ethical standards thoroughly if they wish to be effective in their careers.’ Support your discussion
with reference to appropriate academic research and organisational examples.
[Image Credit: Ref5]

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Ethics:
“Ethics is knowing the difference between what you
have a right to do and what is right to do”
-Potter Stewart(“TOP 25 BUSINESS ETHICS QUOTES,”
n.d.)
Ethics is a philosophical term starting from Greek word
"ethos" which means custom or character. It is worried
about portraying and endorsing moral prerequisites and
practices, which recommends that there are worthy and
inadmissible methods for carrying on that fill in as a
component of philosophical standards (Minkes, Little,
and Chatterjee, 1999). Moral conduct is characterized as
conduct which is ethically acknowledged as "great" and
"appropriate" instead of "awful" or "wrong" in a given
circumstance (Sims, 1992). Morals is the code of
qualities and good rules that aides individual or
gathering conduct as for what is correct or off-base.
Moral conduct is both lawfully and ethically satisfactory to the bigger group (L. K. Trevino, 1986). Moral
problems however, are available in questionable circumstances, in which diverse interests, values,
convictions relating to numerous partners are in strife.
[Ref1] [Ref8]
Ethics in society deals in social and cultural behavior of either an individual or a community. Ethics is also
a major part of businesses in which individuals of these communities are involved. Hence, the term
‘Business Ethics’.
Business Ethics:
“Business Ethics” are moral rules that guide the way a business carries on. Similar rules that decide a
person's activities likewise applies to business. Acting in a moral way includes separating amongst "right"
and "wrong" and afterward making the "right" decision. It is generally simple to distinguish dishonest
business hones. For instance, organizations ought not utilize youngster work. They ought not unlawfully
utilize copyrighted materials and procedures. They ought not take part in remuneration. In any case, it isn't
generally simple to make comparable immovable meanings of good moral practice. An organization must
make an aggressive return for its
investors and treat its workers
decently. An organization
likewise has more extensive
obligations. It ought to limit any
mischief to the earth and work in
ways that don't harm the groups
in which it works. This is known
as corporate social obligation.

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[Ref6] [Ref7]
[Image Credit: Ref2]
Ethics in business has now grown its stronghold foot in every business aspects. Ethics is now considered
as one of the major factors to succeed in the business. People at higher managerial roles come across
ethical scenarios as they approach in their businesses on a day to day basis. Their choices and decisions
bring out the ethical thoughts they perceive in the organization; Hence, it becomes very important for them
to take decisions as per business and ethical standards. At times, managers or even organizations, come
across ethical scenarios that clearly seems right or wrong as per their (organizations) values or so called
‘code of conduct’. Although, majority of their decisions would be legal (on papers), yet, there would be
incidences where a certain decision goes beyond legal boundaries and be illegal (off the record).
In this modern-day business, Managers find themselves stuck in ethical scenarios where they ultimately
have to just make strategies function properly to compete with the ever-increasing competition and to keep
up the throttle to cope up with the continuous pressure from their top management. For example, An ABC
organization informs their manager that they are planning to cut off their 200 employees due to the low
market capitalization. The Manager then realizes that few of his close friends/relatives are on the list. As
per the code of conduct he/she cannot tell anyone until the management says so. The manager has the
access to the list. But as per business ethics he/she cannot make changes to the list even if he wants to. So
now the manager is actually in an ethical dilemma of performing a personal or professional duty. As per
managerial conduct he/she would have to let go off his friends/relatives, Thus, working in the benefit of
the business of the company over the profit of the people working for them.

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Ethical Role of the Manager:
The Ethical role of a Manager involves moral principles in the tasks. Every managerial decision in an
organization influences both the workforce or the individuals involved in the business in some way; and
these impacts require actions to be taken as choices are taken based upon these variables. The primitive
job of a manager is to they mainly focus on the profit of the shareholders. However, though not always
recognized explicitly, business ethics is at the core of management practice.
The ethical role of managers is nowadays starting to go ahead of monetary obligations when taking into
account the numerous partners who comprise the organization being managed. Business decisions affect
both stakeholders and people around them; therefore, a logical conclusion is that those decisions should
have inherent ethical angle along with the managerial decisions. Behaviors and Actions are therefore
considered ethical in nature. At whatever point there are any results because of a choice, conduct, or
activities that a supervisor makes, there are moral perspectives to that choice or circumstance. While a
few faultfinders assert that business moral is a Bubble, Reality is that choice and actions have outcomes
and that reality suggests some level of morals, either low or high. Accordingly, administrative part and
morals can't ever be torn separated.
[Ref3]
Ethical Leadership:
We characterize authority as the specialty of influencing an adherent to need to do the things, exercises,
that the pioneer defines as objectives. The part of pioneers is in this manner during the time spent
coordinating the person's conduct towards a coveted objective. Initiative implies a connection between a
pioneer and his adherents inside a situational and hierarchical setting. Authority is likewise characterized
as a power-and esteem loaded connection amongst pioneers and adherents/constituents who plan genuine
changes that mirror their common purposes and objectives. Initiative with regards to regulating
authoritative morals would be characterized concerning how people ought to carry on in an association.
This likewise incorporates the hypotheses about criteria that characterizes moral choices and identity
qualities. Moral administration is hence vital and imperative in giving guidance that empowers the
association to satisfy its main goal and vision and accomplish announced objectives.
The criteria pertinent for judging moral conduct of a pioneer incorporate individual esteems, cognizant
aims, opportunity of decision, phase of good improvement, sorts of impact utilized, and utilization of
moral and additionally dishonest conduct (G. Yukl, 2006). A portion of the trademark practices of moral
and untrustworthy pioneers are appeared in the table underneath:
Ethical leader Un-ethical leader
Is humble Is arrogant and self-serving
Is concerned for the greater good Excessively promotes self-interest
Is honest and straightforward Practices deception
Fulfils commitments Breaches agreements
Strives for fairness Deals unfairly
Takes responsibility Shifts blame to others

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Shows respect for everyone Diminishes others’ dignity
Encourages and develops others Neglects follower development
Shows courage to stand up for what is right Lacks courage to confront unjust acts
[Ref1]
Ethical decision making:
[Image taken from Ref4]
Managers in both large and small enterprises confront troublesome moral circumstances day by day as
they endeavor to do their occupations. Since administration choices characteristically include moral
contemplations, be that as it may, it is vital that administrators perceive the moral components that are
implanted in their everyday activity capacities. They should have the capacity to reason through moral
choices, similarly as they would reason through any administrative issue confronting them. Commonly,
morals loaded circumstances include issues that are unmistakably right or wrong when judged by the
administrator's or association's esteems or set of accepted rules. Moreover, most administrative choices
and activities are lawful, despite the fact that there are events when a specific choice would unmistakably
go past legitimate limits and be illicit.
[Ref3]

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Why managers’ ethnicity is important for the success of organization:
Every decision taken by the management impacts the daily tasks of the employees down the order and
the approach followed by them then reflects the level of work enthusiasm nurtured in the organization.
Business Ethics is therefore an important subject in the academics of business students. Small and large-
scale companies are investing their considerate money and time to accustom their pre-existing
employees about ethics and How they should go hand in hand with an ethical approach in their
businesses. Companies adapt various methods such as workshops, Seminars, Training sessions, People-
talk and Past scenarios to make their employees feel at home. The higher the standard of ethical
behavior in an organization, the greater is the chances for a company to grow financially. The higher the
standard of ethical behavior in an organization, the greater is the level of customer satisfaction which is
again a very big parameter to measure if a company is going in the right direction.
Employees understand the company’s strategies and follows the choices and guidelines set by the top
management for better efficiency and to maximize profits. This also starts affecting the ethical behavior
of the employees and influence the ethical standard of the organization. (p 294 Managing business ethics,
Linda K. Trevino)
Impacts of lack of ethics in managers:
Below given are some of the well-known blunders caused due to lack of ethical standards in their
organizations:
➢ The most famous is the Financial crisis of 2008 and the reason behind this crisis was the greed
and lack of ethics in the managers which resulted as billions of loss in money and millions of
people being jobless just because of the absence of ethics in manager’s decision making.
➢ The Stanford Financial Fallout (2009)
This was a fraud case where Allen Stanford gained $8 billion, this was a case of trust misplaced. Stanford
coaxed his clients to invest in safe Certificate of Deposits, but the money was instead used in hedge funds
that could (and did) lose money. [Ref9]
➢ Enron Corp. (2001)
Enron was the “IT” company at the turn of the century as it oozed with wealth, smarts, and power.
However, this Houston-based energy company toppled into a spectacular bankruptcy due to a
painstakingly-planned accounting fraud made by its accounting firm, Arthur Andersen. Once considered
a blue-chip stock, Enron shares dropped from $90 to $0.50, which spelled disaster in the financial world,
where thousands of employees and investors saw their savings vanish with the company as it filed for an
earnings restatement in October 2001. [Ref9]

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Conclusion:
We are in the 21st
century now. We are in the era of apps and automation. We have social apps now.
Ethical studies primarily ‘Business Ethics’ is now actively a major part of every business academia.
Businesses have now started giving as much importance to Brand Name, Reputation, Customer feedback
and satisfaction as they used to give to productivity, efficiency and profitability. They have now extra
emphasis on reputation and healthy work environment where ethical behavior and proper code of conduct
are well expected from the managers. However, this practice is not wholly in action as of now But, is
gradually spreading across all the organizations as they realize that Ethics is significantly important for
their businesses as well as for managers if they wish to rise to the top order in the long run.
Further Readings:
1. www.ef.uni-lj.si/docs/osebnestrani/MIhelic_Lipicnik_Tekavcic_2010_clute.pdf
2. Image Credit: https://www.entrepreneur.com/article/272746
3. homepages.se.edu/cvonbergen/files/2015/01/Ethical-Role-of-the-Manager.pdf
4. Image taken from unethical behavior - Harvard Business School
5. Image taken from https://encrypted-
tbn0.gstatic.com/images?q=tbn:ANd9GcSJ44LRU9MQ7tJmnCW2G_NChPHZVsVWCmsyZxjWGjb9M
A3IvybI
6. (“What are business ethics? - Business ethics and corporate social responsibility - Anglo American | Anglo
American case studies, videos, social media and information | Business Case Studies,” n.d.) [Accessed 17
Mar. 2018]
7. http://www.officerreports.com/blog/ethics-guide-business-decisions/
8. https://impactreport.sju.edu/2016fall/arrupe-center-for-business-ethics-fellows-continue-
learning/
9. 25 Biggest Corporate Scandals Ever, 2013 [accessed on 17-03-2018]