“Ethics” is a term often discussed in relation to business activities. What are ethics, and are they necessary to the business world? One business expert defines ethics as “ethics involves learning what is right or wrong, and then doing the right thing. ” This definition is extremely simple, but it reflects the core issues surrounding what ethics are – that is, “right” and “wrong. ” The next step is to look at what ethics has to do specifically with managerial activities. In general, ethics has a strong role in managerial activities.In today’s day and age, it is risky to assume that ethics has no part in managerial activities.
For example, look at the Microsoft antitrust case. Although there are many differing opinions on whether or not Microsoft really violated the laws or ethical behavior, there are certainly questions about the matter. Microsoft vigilantly went after the entire market share in the area of operating systems and software, and had enough clout to be able to destroy whoever was out there.Had Microsoft not taken such a hard stance, they would not have been able to garner the lion’s share of the market – it was, in a way, the only way to successfully do business.
However, they also had to deal with the lawsuit, and a ton of criticism from other businesses in their industry and from the general public (McLaughlin). On one hand, had Microsoft considered business ethics heavily before making their moves in the market, they would not have had the success that they do. On the other, they would not have ended up with the criticism that they did.It can be said that ethics has no part in managerial activities because if a company is constantly looking out for what people think of their moves (whether they are right or wrong), they will miss opportunities to profit, and will end up less successful or even end up going out of business. Many business experts don’t agree with this philosophy, however. One expert in particular is interested in changing peoples’ minds about ethics and their application in the workplace.
He asserts that ethics are necessary, can be well managed, and are in fact an intricate part of the workplace.For example, ethics involves managing conflicts that occur between employees in order to promote good employee relations. It is also necessary to state a company’s policy on ethics (i. e. not stealing, not making deals that may be a conflict of interest for the employee or the company, etc. ) and make sure the employees are following it, regardless of how trustworthy the individual employees are (McNamara).
Other business experts assert that ethics are absolutely necessary in business, because how far a businessperson will go depends not only on his skill, but also his personality, networking skills, and his character.A businessman who adheres to ethical codes is more likely to inspire people to follow him and to do a good job in meeting goals, because they feel that their leader is fair, the work environment is positive, and the company is doing well. A businessman who does not adhere to ethical principles sets up a negative work environment for his employees, does not inspire their confidence, and has trouble encouraging them to reach goals (Cloud). Despite the example that Microsoft provides to the contrary, most businesses who operate by cutthroat procedures will not experience incredible success in their fields.Recent research has shown that when employees are happy and feel positive about their jobs and work environments, they produce more and the company as a whole does better. Ethics plays a large part in creating a positive work environment by immediately and fairly mediating any conflicts that arise between two employees, or employees and management.
Management in and of itself adheres to ethics as it promotes people under fair circumstances (such as seniority or merit, as stated in advance), solves work conflicts to employee satisfaction, and more (Cloud).In today’s business climate, ethics are important to good business practices and deals. Companies in most industries will find their business practices and successes (including their all-important bottom line) increased by worrying about ethics. As nearly all businessmen realize, it is much cheaper to retain good employees than it is to always have to recruit and train new ones.
By creating a positive, fair environment, businesses will retain larger numbers of employees. This is just one way to lower costs and increase profits.Ethics plays a large part in making this possible. As the business scene continues to change, and people feel even more strongly about their value as individuals (both personally and in their contributions to their companies), ethics will continue to play a larger part. Managers in particular will have to be involved in this, as they will be creating and leading teams of people who will be doing the majority of the company’s real work.
Ethics will eventually solve all dilemmas, at least in business.Referencehttp://www.wsws.org/articles/1999/nov1999/micr-n11.shtmlhttp://www.managementhelp.org/ethics/ethxgde.htm#anchor26548
