GENERAL MANAGEMENT
CHECK POINT 20: MANAGERIAL ETHICS
This Check Point Is Available By Subscription Only,
But You Can Still Check Out The Menu Below. |
|
|
DO I NEED TO KNOW THIS CHECK POINT?
|
|
GENERAL MANAGEMENT
CHECK POINT 20: MANAGERIAL ETHICS
Please Select Any Topic In Check Point 20 Below And Click. |
|
|
DO I NEED TO KNOW THIS CHECK POINT?
|
|
WELCOME TO CHECK POINT 20 |
|
|
HOW CAN YOU BENEFIT FROM CHECK POINT 20? |
|
The main purpose of this check point is to provide you and your management team with detailed information about Managerial Ethics and how to apply this information to maximize your company's performance. |
|
In this check point you will learn: |
|
• What are managerial ethics?
• About six basic factors which may influence ethical behavior.
• About the influence of government regulations on ethical behavior.
• About the influence of industry ethical codes on ethical behavior.
• About the influence of individual characteristics on ethical behavior.
• About a company culture.
• About the influence of social pressures on ethical behavior.
• About common excuses used by unscrupulous managers.
• How to improve ethical standards of employees.
• How to complete the business ethics test... and much more. |
|
LEAN MANAGEMENT GUIDELINES FOR CHECK POINT 20 |
|
You and your management team should become familiar with the basic Lean Management principles, guidelines, and tools provided in this program and apply them appropriately to the content of this check point. |
|
You and your team should adhere to basic lean management guidelines on a continuous basis: |
|
• |
Treat your customers as the most important part of your business. |
• |
Provide your customers with the best possible value of products and services. |
• |
Meet your customers' requirements with a positive energy on a timely basis. |
• |
Provide your customers with consistent and reliable after-sales service. |
• |
Treat your customers, employees, suppliers, and business associates with genuine respect. |
• |
Identify your company's operational weaknesses, non-value-added activities, and waste. |
•. |
Implement the process of continuous improvements on organization-wide basis. |
• |
Eliminate or minimize your company's non-value-added activities and waste. |
• |
Streamline your company's operational processes and maximize overall flow efficiency. |
• |
Reduce your company's operational costs in all areas of business activities. |
• |
Maximize the quality at the source of all operational processes and activities. |
• |
Ensure regular evaluation of your employees' performance and required level of knowledge.
|
• |
Implement fair compensation of your employees based on their overall performance.
|
• |
Motivate your partners and employees to adhere to high ethical standards of behavior. |
• |
Maximize safety for your customers, employees, suppliers, and business associates. |
• |
Provide opportunities for a continuous professional growth of partners and employees. |
• |
Pay attention to "how" positive results are achieved and constantly try to improve them. |
• |
Cultivate long-term relationships with your customers, suppliers, employees, and business associates. |
|
|
|
1. WHAT ARE MANAGERIAL ETHICS? |
|
|
MANAGERIAL ETHICS |
Business owners and managers must adopt and maintain high personal and business ethics and share these positive values with all employees, customers, and suppliers to ensure the most successful performance of their organization.
The issue of Managerial Ethics and ethical behavior has become increasingly important in recent years. Ethics commonly refers to the rules or principles that define right and wrong conduct. It is often complicated, however, to determine "what is right" and "what is wrong", since such determination depends upon the specific standards acceptable to society. Moreover, managerial ethics are influenced by several factors illustrated next. |
|
Government
Regulations |
|
Industry
Ethical Codes |
|
Social
Pressures |
|
|
|
|
|
|
FACTORS INFLUENCING ETHICAL OR UNETHICAL BEHAVIOR |
|
|
|
|
|
Organizational
Framework |
|
Organizational
Culture |
|
Individuals'
Characteristics |
|
|
|
All elements of managerial ethics discussed in this program boil down to one powerful concept, discussed very eloquently by Guy Kawasaki at Stanford University and this concept is called: |
Be A Mensch! |
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
2. GOVERNMENT REGULATIONS |
|
|
GOVERNMENT REGULATIONS |
Government Regulations certainly play an important role in molding the ethics of all law-abiding people. Moreover, there is a variety of laws specifically regulating behavior in the business sector. Equal employment opportunity laws, for example, prohibit discrimination of employees or applicants on the basis of race, color, religion, gender, or national origin.
Other laws prohibit use of certain materials in various manufacturing processes, such as lead or asbestos, or define deceptive advertising as illegal. Many laws clearly specify the boundaries of what is allowed and what is prohibited in business, thus leaving potential violators with the risk of paying substantial fines or being penalized in other ways. |
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
3. INDUSTRY ETHICAL CODES |
|
|
INDUSTRY ETHICAL CODES |
Industry Ethical Codes exist in many business sectors. These codes are usually developed by various trading and professional associations, such as Direct Marketing Association, National Wholesale Hardware Association, or American Electric Association. Each association develops its own set of codes of conduct which clarify a broad range of ethical issues. These codes apply to companies that belong to a particular association on an industry-wide basis.
Business owners, managers, and other employees are expected, therefore, to observe specific codes of behavior and to convey these codes to others. |
You may also find useful suggestions for Writing Code Of Ethics For Your Business, developed by Joel Saltzman. |
|
ADDITIONAL INFORMATION ONLINE |
|
|
CODE ETHICS STATEMENTS ONLINE |
|
|
|
4. INDIVIDUAL CHARACTERISTICS |
|
|
INDIVIDUAL CHARACTERISTICS |
Individual Characteristics of every person play a dominant role in ethical or unethical behavior.
Each person starts to develop a set of values from the early stage of his or her life. The value development process is strongly influenced by parents, teachers, friends, and society. Once the person matures, he or she learns to distinguish between "right" and "wrong" and subsequently adopts a set of values. These values, however, may differ from one individual to another, depending on the influence of the above mentioned factors.
If you would like to learn more about Principles Of Ethics and Ethical Behavior, you are invited to watch this fabulous video:
What Will Matter? By Michael Josephson
and visit Josephson Institute Of Ethics online.
|
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
5. ORGANIZATIONAL FRAMEWORK |
|
|
ORGANIZATIONAL FRAMEWORK |
Organizational Framework is another important factor that influences ethical or unethical behavior.
Members of a particular organization are expected to behave in the manner prescribed by that organization. This process is regulated by various rules, job descriptions, and written codes of behavior stipulated by management. All employees, therefore, must be committed to act within and outside an organization in accordance with such rules, to perform their duties as prescribed by a job description, and obey other written codes of behavior.
Moreover, a clear organizational structure provides employees with additional guidance in the workplace. It helps to determine lines of authority, responsibility, and accountability in the context of ethical behavior within the organization. |
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
6. ORGANIZATIONAL CULTURE |
|
|
ORGANIZATIONAL CULTURE |
Organizational Culture also contributes to developing and maintaining sound managerial ethics.Organizational culture refers to the character of the organization and is comprised of its unique values, traditions, and attitudes. It is developed throughout the company's existence and embodies the values, mentality, views, and aspirations of its owners.
A renowned business author Stephen P Robbins suggests:
"A culture that is likely to shape high ethical standards is one that is high in risk tolerance, direction, and conflict tolerance. Managers in such a culture will be encouraged to be aggressive and innovative, will have clear objectives and performance expectations to guide them, and will feel free to openly challenge demands or expectations they consider to be unrealistic or personally distasteful."
According to Robbins:
"A strong culture will exert more influence on managers than a weak one. Therefore, if the culture is strong and supports high ethical standards, it should have a very powerful and positive influence on a manager's ethical behavior. In a weak culture, managers are more likely to rely on subculture norms as behavioral guide. Thus work groups and departmental standards will strongly influence ethical behavior in organizations that have weak overall cultures."(49) |
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
7. SOCIAL PRESSURE |
|
|
SOCIAL PRESSURE |
Social Pressure often influences ethical or unethical behavior.
Since the modern society emphasizes the pursuit of money and its purchasing power, some people conveniently forget about "right" and "wrong". There is strong evidence in today's business world to suggest that greed is becoming an important factor in managerial ethics. Unfortunately, this factor also applies to some small and medium-sized business owners.
Several experts conducted studies and examined the attitudes of business people and managers toward ethical behavior. They reached several conclusions outlined below. (50) |
ATTITUDES OF MANAGERS TOWARD ETHICAL BEHAVIOR |
1. |
Many business owners and managers consider themselves honest people. However, when it comes to business, they are sometimes prepared to "cut corners" to meet their business objectives. |
2. |
Business owners and managers who have a clearly defined personal code of behavior are likely to match their actions to improved ethical behavior in the business environment. |
3. |
Business owners and managers are aware of overall social responsibilities of business in the society. However, they often underestimate the importance of high ethical standards. |
4. |
Business owners and managers may differ substantially in their views about specific business practices. This, in turn, may result in a broad range of interpretations and attitudes toward ethical behavior. |
5. |
Many business owners and managers believe that "economics" and "ethics" do not really mix, and this often results in poor ethical behavior in many industries. |
6. |
Most business owners and managers are prepared to adhere to a specific "code of behavior" in a particular industry, provided that such a code is enforced on a continuous basis. |
7. |
Many business owners and managers realize that they carry the important responsibility of initiating and maintaining an improved ethical behavior within their organizations. |
|
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
8. COMMON EXCUSES USED BY UNSCRUPULOUS MANAGERS |
|
|
EXCUSES, EXCUSES, EXCUSES... |
Several experts studied and identified typical Excuses frequently used by unscrupulous business owners, managers and their subordinates. These excuses provide good indication why some people adopt poor ethical standards in business and what can be done to reduce unethical practices. (51) |
COMMON EXCUSES USED BY UNSCRUPULOUS MANAGERS
• "It Is Not Really Illegal Or Immoral."
Not everything is "black" and "white" in life and, particularly, in business. Since there are so many "gray" areas, it is up to the individual business owner or manager and their subordinates to identify what is really "right" or "wrong", using their individual standards of acceptable ethical behavior and common sense. It is important to remember that ultimately every person is answerable to "the person in the mirror" and to his or her own conscience.
• "Since Nobody Knows About It Now, It Is OK"
Many business owners and managers often face a situation, whereby their specific actions may not be noticed for a certain period of time and, instead, may become apparent much later. It is important to remember, however, that being in business is a long-term journey and sooner or later unethical behavior will be discovered.
• "This Is Not In My Personal Interests."
Sometimes managers may be aware of a certain course of action, which will be in the best interests of their organizations, however, it may not be in their own best interests. In this instance, managers should always remember, that it is important to do the right thing, even if this means "not to be the prime beneficiary at any cost".
• "This Is Not In My Company's Interests"
Sometimes business owners and managers may be aware of a certain course of action, which may not be totally in the interests of their organization. However, if this is the only course of action which is based on decency and fairness, it should be adopted no matter what. Otherwise, this may lead to further erosion of ethical behavior of all concerned parties.
• "This Is In My Company's Interests, Although I Am Personally Against It"
Managers and other employees often experience conflicts between personal values and professional goals. For example, a sales manager may be expected to "grease" (offer bribe) someone to secure new contracts. Sometimes it may be effective, but it is definitely immoral. It is important to remember that significant unethical behavior usually starts in a very insignificant fashion.
• "Since My Action Helps My Company, I Can Do It"
Some business owners and managers justify bribery, "kickbacks" (paying back for "favors"), cost duplication, product substitution, mishandling employees, shortchanging customers, and other ethical and moral abuses as an essential part of doing business. While many managers are expected to remain loyal to their organizations, there can be no justification for unethical behavior, and there is no substitute for decency. |
|
THE ULTIMATE COST OF EXCUSES |
There were several prominent companies in the US and other countries, that were considered very successful and at times, invincible, in terms of their powerful status and business performance. Some of these companies, unfortunately, ceased to exist due to their management's inability to be honest and behave in a prudent and decent way. Such unfortunate behavior, often driven by pure greed, caused top managers in these companies to choose the "slippery slope" and end up as scandalous headlines published by major news media throughout the world. Some examples of these type of companies are presented below: |
|
Note:
Do not allow yourself or your managers to suffer from a disease, called "chronic excuses". This disease, also known as "excusitis", will definitely cause a negative impact on your company's short- and long-term performance and the "bottom line". |
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
9. HOW TO IMPROVE ETHICAL STANDARDS OF EMPLOYEES? |
|
|
ETHICAL STANDARDS |
Business owners and managers should take various actions to improve their own Ethical Standards and those of their employees. These actions may include a number of essential steps outlined below. |
|
STEPS FOR IMPROVING ETHICAL STANDARDS OF EMPLOYEES |
1. |
Formulate clear policies, rules, and codes of conduct which encourage ethical behavior of all employees. |
2. |
Maintain high managerial ethics in order to set example for subordinates. |
3. |
Define tangible objectives without making unrealistic demands on employees. |
4. |
Initiate ethical programs for all employees. |
5. |
Maintain comprehensive performance appraisal of employees including evaluation of ethical standards. |
6. |
Assume responsibility for disciplining wrongdoers. |
7. |
Develop a mechanism that encourages employees to observe (not to spy!) and report the wrongdoing of their co-workers. |
8. |
Conduct independent social audits by outside consultants. |
|
|
MANAGEMENT'S RESPONSIBILITY IN
IMPROVING ETHICAL STANDARDS OF EMPLOYEES |
Improvement of Ethical Standards within an organization cannot happen overnight. It is important, however, that business owners and managers pay serious attention to this issue and invest time and effort in upgrading ethical performance of employees. Although lengthy, this process should be started as soon as possible. |
You are also invited to read these useful articles, published by GlobalPost online: |
|
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
10. SMALL BUSINESS EXAMPLE
THE BUSINESS ETHICS TEST |
|
|
THE BUSINESS ETHICS TEST |
Instruction: Evaluate each of the statements below. |
Statement |
|
|
|
Strongly
Disagree |
Enter 0 |
|
If I need to bribe somebody to get the contract, I will! |
|
|
|
|
If I can avoid payment for a legitimate service rendered by a supplier, I will! |
|
|
|
|
If I can substitute one product with a cheaper one without clients' knowledge, I will! |
|
|
|
|
If I need to use an informant, who is employed by my competitor, about my competitor, I will! |
|
|
|
|
If I need to convince my employees to work overtime for free, I will! |
|
|
|
|
If I need to convince a government agent that I did nothing illegal, when I know I did, I will! |
|
|
|
|
If I need to alter figures in the cash book to reduce taxes, I will! |
|
|
|
|
If I need to give promises to my employees, knowing in advance, that they will not materialize, I will! |
|
|
|
|
If I can get cash from one of my clients without telling my partner, I will! |
|
|
|
|
If I can make more money by doing something illegal, I will! |
|
|
|
|
Total Per Column |
|
|
|
|
Total Score |
|
|
|
|
Test Results: |
• If your score is: 0 |
• You can do business in the Vatican! |
• If your score is: 1-10 |
• You get a gold medal for decency! |
• If your score is: 11-12 |
• You get a silver medal for decency! |
• If your score is: 13-14 |
• You get a bronze medal for decency! |
• If your score is: 15-16 |
• You get a plastic medal for decency! |
• If your score is: 17-18 |
• You get a paper medal for decency! |
• If your score is: 19-20 |
• You know exactly who you are! |
• If your score is: 21-22 |
• Start praying for yourself! |
• If your score is: 23-30 |
• We will pray for you! |
|
|
ADDITIONAL INFORMATION ONLINE |
|
|
|
11. FOR SERIOUS BUSINESS OWNERS ONLY |
|
|
ARE YOU SERIOUS ABOUT YOUR BUSINESS TODAY? |
Reprinted with permission. |
|
12. THE LATEST INFORMATION ONLINE |
|
|
|
LESSON FOR TODAY:
The Measure Of Life Is Not In Length, But Honesty!
John Lilly |
Go To The Next Open Check Point In This Promotion Program Online. |
|
|