Importance Of Management Ethics In Business Organizations

The concept of business ethics in organizational management, which gained significance in the ancient world, is critical for the success of any corporate organization in the contemporary world. “Management Ethics: Ethics in Business Organizations” is a journal article that addresses various aspects of business ethics, including application, meaning, and significance of ethics in today’s organizations. This article, which is written in Portuguese by Bondarik, Pilatti, and de Francisco, was published in 2006 in Brazil, and this review is based on its English translation.

The article has four main sections that focus on various aspects related to the significance of ethical behavior in the corporate field, which is an integral part of the human

Here, it is argued that behaviors considered ethical or unethical with respect to customer satisfaction, economic prosperity, environmental pollution, and product safety are all modeled by the management society in the global corporate arena. In the third section of the article, the authors narrow down to managerial ethics in business organizations, where morals in corporate decision-making, accountability and transparency, and other business activities and procedures are discoursed. In this section, the authors assert that business ethics should not only be a synthetic value added to corporate activities and operations, but also be an intrinsic infusion evident in all economic activities of a particular business organization. The last section of the article is a case study of Enron Company, which is used in substantiating the need for business ethics in companies or corporate

This in turn is influenced by the code of ethical principles upheld in that particular organization, implying that the reference point for corporate goal realization is business ethics. Keeping in mind that organizational decisions are customarily made by managers and other professional executives, the authors maintain that these leaders should spearhead ethics in their organizations. To some extent, this is agreed with, since good governance entails consistency, reliability, sustainability, and transparency, all of which are based on ethic. Woodrow (2010) attributes such governance to an environment that encourages sustainable growth of business and that promotes powerful investments. All the same, it should be remembered that business organization are composed of people at different level, and each level is governed by codes of ethics imposed to them. This implies that upholding ethical behaviors and values is everybody’s responsibility in any organization, as Pilenko (2011)