Importance Of Ethics In Managerial Decisions

Importance Of Ethics In Managerial Decisions

IMPORTANCE OF ETHICS IN MANAGERIAL DECISIONS

By Anila Tirmizi from Preston University Karachi-Pakistan

Ethical decision-making and leadership are the basis of ethical organizations, corporate social responsibility, 'fair trade', sustainability, and other similar concepts.

Ethical principles provide the foundations for various modern concepts for work, business and organizations, which broaden individual and corporate priorities far beyond traditional business aims of profit and shareholder enrichment. Ethical factors are also a significant influence on institutions and public sector organizations, for which the traditional priorities of service quality and cost management must now increasingly take account of these same ethical considerations affecting the commercial and corporate world.

The modern concept of ethical organizations encompasses many related issues including:

  • Corporate social responsibility (CSR) - or simply social responsibility

  • The 'triple bottom line'

  • Ethical management and leadership

  • Fair trade

  • Globalization (addressing its negative effects)

  • Sustainability

  • Social enterprise

  • Mutual, cooperatives, employee ownership

  • Micro-finance, and

  • Well-being at work and life balance, including the Psychological Contract.

The Psychological Contract represents trust and expectations between people in a relationship - notably within employer/employee relationships, extending to other organizational relationships too. (Aside from Psychological Contract theory, specialized theory within Transactional Analysis helps explain this aspect of trust and expectations in human relationships)

Any other aspects of good modern leadership, management and organizations that relate to ethics could be added to the list. Ethics is a very broad area. You will see very many different definitions and interpretations of the concept and you should feel free to develop your own...