Utilitarianism is a teleological ethical theory based on the idea that an action is moral if it causes the greatest amount of happiness for the greatest number of people. The theory is concerned with predicted consequences or outcomes of a situation rather than focusing on what is done to get to the outcome. There are many forms of utilitarianism, having been introduced by Jeremy Bentham (act utilitarianism), and later being updated by scholars such as J.S. Mill (rule utilitarianism) and Peter Singer (preference utilitarianism). When referring to issues of business ethics, utilitarianism can allow companies to decide what to do in a given situation based on a simple calculation.
Leaders must work hard through hiring, training, and performance management systems to bring in the right employees and then help employees internalize the organization’s underlying values. Ethical leadership from the top is very important- because it creates an environment in which lower-level ethical leaders can flourish- but ethical leadership at the supervisory level has a huge impact on followers’ attitudes and behavior. Unethical Influences Companies rely on employees to produce and deliver high-quality products and services. Employees are impacted by a variety of forces—both internal and external—as they attempt to perform their job duties. Employers who are aware of these forces, and who are prepared to leverage or counteract them, can increase productivity and loyalty.
Covey’s view on effective leadership with a strong ethical component is described in the following sentence: “To value oneself and, at the same time, subordinate oneself to higher purposes and principles is the paradoxical essence of the highest humanity and the foundation of effective leadership (Covey, 2004, p. 19). Leader’s character influences his ethical performance, but solely poor character does not fully explain ethical lapses in corporations. However, it is true, that a strong character plays an important role in effective self-leadership and in the process of leading others. Leaders therefore must rely on their inner voice, inner compass that points them in the ethical direction (Brown,
Unethical behavior occurs within many different organizations and at many different levels. According to Kreitner & Kinicki (2013), organizations that foster a pressure-cooker atmosphere for results, unwittingly allows managers to set the stage for unethical shortcuts by employees who seek to please the boss and protect their jobs. Within the military, this is evident by the high rewards for accomplishing goals and then the punishment for not obtaining them. When an ethical lapse occurs it impacts the organizational culture. The organizational culture is a system of shared assumptions, values and beliefs that governs how people behave in organizations.
Businesses today need to be ethical in the way they operate. Remuneration, being a corporate governance issue, should be dealt with wisely since directors in the modern business world are expected to act as good corporate citizens. According to some research, high packages are justified as they do reflect the performance of those directors. Levels of remuneration should be adequate to attract, retain and motivate directors of the quality required to run the company successfully. However, directors should not be paid in excess of the adequate levels necessary for this purpose.
Analysis of leadership role in influencing employees’ ethical and unethical behavior, A Case study of Bernard Ebbers (Ex - CEO WorldCom) Written By Oluwakemi Annafi Kidus G. Mehalu and Addis Ababa (2011) defined ethics as concerning itself with human conduct or activity that is done knowingly or consciously and does have applicability to organizational life. Organizations as entities do not make decisions; individuals acting in the interests of the organizations do, this fact is buttress by Erondu et al (2004), he pointed out that ethics focuses on the standards by which a human action can be judged good or bad. Further explanations on ethical behavior, impact and implications shall be discussed in the analysis of the case study questions
Ethically, people in the position to make decisions in Nike should bejust, not biased, state of being equal and be thoughtful of the right of the individuals and their workers. Nike faced ethical dilemma within the company, this ethical dilemma means a moral problem with choice of two or more options. It occurs in their business when they have to take a decision to make weighs values and morals against profitability and also when identified solution is very undesirable because of harmful ethical effect. Though right and wrong is not stated in the situation but let’s look into the ethical challenges faced by the company business. The unethical behavior of Nike (what
Position: Companies and business people should be ethical Point 1: Being ethical in business strengthens the systems and relationships that support and sustain it Individuals, through corporations, have the right to amass wealth, but morality dictates that they do so ethically. Frist, principles of justice argue that unethical business practices, although may be legal, are unfair
There are ways in which managers may encourage ethical behaviour, for instance by guiding subordinates, by setting targets which are so challenging that they can only be achieved through cutting unethical actions. Bureaucracy supports the authority and reward system and may have various effects on individual's responses to moral basic leadership where individual moral convictions have a tendency to be abrogated by the principles and roles of the bureaucracy. Additionally, factors such as working roles, organisational field or national and cultural context also affect the decision making
Ethical leaders have an obligation to develop their subordinates, challenge them, and provide them with an example of the standard of leadership. Their success is highly related to the pathway their leader builds or cuts off. Peers of leaders deserve to have a “team player” that can support the moral high road, questioning actions lacking the highest ethical elements, and contributes to making decisions for the organization which adhere to unwavering principles. Suppliers and customers both have a need to be able to engage with an organization that has a reputation for impeccable honesty. They are investing in a financial relationship, which puts them at risk.