Ethical consideration

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Ethics in Managerial Decisions

Tim Slack

LDR50Do my essay on Ethical consideration CHEAP !

Damon Walsh

October 1, 00

Ethics in Managerial Decisions

For these reasons, and because business can be a powerful agent of positive social change we offer the following principles as a foundation for dialogue and action by business leaders in search of business responsibility. In so doing we affirm the necessity for moral values in business decision making; without them, stable business relationships and a sustainable world community are impossible.(Hartman,161)

I was struck by that last statement 'without them, stable business relationships and sustainable world community are impossible'. With out ethics business is impossible.

Now in the context of the above quote, the author was referring to the Caux Principles, a guiding set of ethical considerations that any business in our current world market will ignore at their peril. Now that sound a little extreme, but it is not; this is precisely what ethics are all about, teaching us long term strategies that help us survive.

If you live in a tribal or village community, where you could only depend upon neighbors and family, you might develop an ethic that personally, governmentally, and economically, would justify actions that we in our Western global economy would consider abhorrent.

This is what has happened in Iraq. Saddam, coming from a small village where any actions were justifiable if the family prospered, finds himself today living his tribal ethic, in a situation where it has lost its relevance to a stable society. Only his Bath party hold government employment, he is promoting sons and family to every position of power. He has already killed his son in laws and two uncles, he knows his family is not trustworthy, but because of his tribal ethic he trusts everyone else even less. Saddam is living a 1th century ethic at the dawn of the 1st. In a world where Saddam's tribe was one of several holding very little power, it might have been the optimal long term survival ethic, but it doesn't work today. Because he has kept his tribal ethic, he has justified killing his own people, starving the country, attacking his neighbors, and pillaging when ever he calculated he could get away with it (Brinkley). While Saddam has an ethic, it is a bad one for his people and for his governments continued survival.

Managers need to develop a good business ethic. Every manager has an ethic, it might be based on 'do what ever it takes' it might be based on the Caux Principles, perhaps upon a personal ethical standard, or a religious code, but there will be an ethic. Decision making is not arbitrary, nobody makes choices by throwing darts. So the choice for managers is not 'Do ethics play a part?' but rather what ethic is best for the long term success of the company.

Returning to the Caux Principles, we see that there are several principles a modern business has to consider when developing an ethic that will support the company's survival. The Caux principles give managers seven general considerations and six stakeholder consideration, that every manager and senior executive should consider when developing there ethical base. The relative importance of each of these considerations, will change with different businesses, depending upon their market, their position, and the core espoused values of the enterprise. It is the differences in relative importance that often differentiates one business from another, give companies their individuality. It is these differentiations that good leadership provides, and good managers keep prioritized. A large multinational corporation might consider Support for Free Trade a higher consideration than they respect for the employee stakeholder, but ignoring the employee stakeholder can not be considered a good long term strategy.

This makes good ethics sound like nothing more than a business strategy, a long term plan for developing a world where your business can best survive. Or as Baudelaire said. " For the businessman even ethics are a financial speculation."

References

Brinkley, Doug, 'Tales of a Tyrant' Atlantic Monthly May 00

Baudelaire, Charles. My Heart Laid Bare (published in Intimate Journals, sct. 7, 1887; tr. by Christopher Isherwood, 10; rev. by Don Bachardy, 18)

Hartman, Laura. Perspectives in Business Ethics Irwin McGraw-Hill. Buenos Aires.001

Perlee, Christian. Organization Leadership and Change Management; McGraw-

Hill, 001

References

Brinkley, Doug, 'Tales of a Tyrant' Atlantic Monthly May 00

Baudelaire, Charles. My Heart Laid Bare (published in Intimate Journals, sct. 7, 1887; tr. by Christopher Isherwood, 10; rev. by Don Bachardy, 18)

Hartman, Laura. Perspectives in Business Ethics Irwin McGraw-Hill. Buenos Aires.001

Perlee, Christian. Organization Leadership and Change Management; McGraw-

Hill, 001

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