In order for the future study to be relevant, a view need to be taken on the previous studies conducted on managerial perspectives and on sustainable development in Africa. According to the study of “Ethical considerations of corporate social responsibility - A South African Perspective” (Ackers, 2015), it was conceptualised that CSR was to be representing the fit between the expectations of society and the real ethics of business. The two dimensions were derived from this fit:
(i) Behavioural dimension - representing the fit between the expectations of society and the actions of business (company’s responses to social expectations).
(ii) Attitudinal dimension – reflected the fit between the expectations of society and management perspective
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(i) Immoral managers – they are characterised by decisions, actions and behaviours that actively oppose what may be deemed as being right or ethical and thus making decisions that are incongruous with society’s acceptable ethical norms, and actively contradicting what may be considered moral (Ackers, 2015).
Regulations are regarded as an impediment to achieving objectives by immoral managers and usually exploit opportunities strategically for personal or corporate gain.
(ii) Moral Managers – they have ethical positions that comply with accepted societal norms of ethical behaviour. They often exemplify leadership on ethical issues and not only demonstrate high standards of professional conduct. Both the letter and the spirit of the law, regarding the law as the minimum acceptable ethical behaviour, preferring to perform well above the regulatory requirements is intended to be considered by the orientation. The decisions of moral managers are characterised by the sound ethical principles of justice, fairness, human rights, utilitarianism and due process without ignoring
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This is not an inherently rational or logical process. It involves people making choices about how they build and exercise control over people and resources.”
In the study of “Manager’s Personal Values and CSR” (Hemingway & Maclagan, 2004), it was concluded that whilst CSR is most commonly explained in terms of strategic commercial interest of the organization, ( i.e the image and reputation management, the manipulation of stakeholders and the integration of the organisation into its host community) individual managers may initiate or change specific projects in order to address their personal moral concerns and thus making a difference in an organisation without a formally adopted CSR culture.
Individual discretion is the route through which personal values impact on CSR policies, permitting individuals to use their judgement and acting in an entrepreneurial manner (Hemingway & Maclagan, 2004).
As per the study by (Togo & Lotz-Sisitka, 2013) education system needs to play a significant role in sustainability, and the argument was if the education system is prepared to start with a questioning of the beliefs and values upon which it is founded (Togo & Lotz-Sisitka,
If I were the CEO of Wal-Mart, I will ensure high ethical employee behaviour. Every level of management and non-management employees must fully understand the ethical implications of their decisions as it relates to their personal and professional values. Corporations need to implement a Business Code of Ethics and review with all employees. Also, an excellent tool for learning is case studies and role-playing. The key in this learning is to make the Code accessible and position it as a helpful tool for all employees.
Showing leniency to one employee while throwing the book at another is a primary example of not following ethical guidelines. Treating the people with respect and keeping them equal when it comes to punishments in essential to being a manager. Every move that an organization makes determines the future of where they are headed and the support of shareholders, consumers, and investors. Constellation’s practices relating to management both ethically and mission
The Ethics of Business There have continuously been complications with the application of moral standards in the business environment. What is considered the correct ethical act on a daily basis outside of employment could be entirely different in a business setting scenario. Numerous philosophers have endeavored to reason out rationalizations as to why ethics is considered different in business and have formulated different techniques of methodizing, representing, and commending concepts of what the right moral action should be in certain business situations. Recently Wells Fargo has been involved in a scandal where the business opened millions of unauthorized accounts to ensure high sales. Wells Fargo subsequently fired around 5300 mid-level
It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).
Those individuals look outside themselves to rules and laws and to the expectations of significant others in their environments for guidance when determining the ethically right thing to do. Because these conventional-level individuals represent the large majority of workers, immediate supervisors should be among the most important sources of moral guidance for these employees, and we can expect that they will look to leaders for cues about what behavior is appropriate and inappropriate. Bernard kept the company culture as deviant and unethical by managing the supervisor and those have reward and punishment system to manage staff. So WorldCom became no tolerance of error and required all the staff behave as what they asked to do. That resulted in fraud financial report and bad stocks
Involved in CSR activities are proven to create good image and reputation for a company. In the long run, it helps a company to increase shareholders’ value and achieve sustainable business
Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.
According to research by Mayer, Aquino, Greenbaum, and Kuenzi (2012), moral leaders will often practice appropriate business ethics. In turn, the leader establishes similar positive ethical attribute in all fronts of their organization, since the employees and stakeholders are prompted to follow suit. This is in line with Terris’ (2005) opinion in the book Ethics at Work. Terris commends the Lockheed-Martin program for institutionalizing functioning work ethics at the administrative level (Terris, 2005, p. 47). Furthermore, according LRN research conducted in the United States, most of the full-time workers preferred working in an ethical company, suggesting the importance of leaders and stakeholders’ ethical behavior in the organization (Dubrin, 2010).
“Ethics”, in an organizational context, comprises a set of behavioral standards, expressed as norms, principles, procedural guides, or rules of behavior, defining what is appropriate (right) and inappropriate(wrong). Grounded in a system of values and moral principles, these behavioral
(1995). Managerial ethical leadership: Examples do matter. Business Ethics Quarterly, 5, 97–116. Treviño, L. K., & Nelson, K. A. (2004). Managing business ethics: Straight talk about how to do it right (3rd ed.).
There is need to pay more attention to an analysis of unethical behavior in leadership and its relation to corporate culture. Ethical leadership is a growing concept and many large companies are promoting business ethics as their corporate social responsibility. The behavior and the individual values of the leader provide the direction to the business. Leader’s actions in term of ethical behavior and unethical behavior gives ideas to the employee and other stakeholders that what need to follow and what values are aspired in an organization. The position of the leader with moral and ethical values is most important to provide the solutions to ethical issues in a workplace.
Managers need to transform into moral leaders: Ethics in business In the 21st century the business organizations have faced many ethical scandals. The different type of ethical scandals are accounting manipulation, bribery, infringement of civil rights, child labour and sexual malpractices at workplace (Frenkel, 2013). Some of the top ethical scandals are Enron, Satyam, Lehman Brothers and Bhopal gas tragedy (Rodriguez, 2013). The business organizations can’t achieve global success without ethical business practices.
The development of a code of ethics should be an inclusive and consultative dialogue/ process between all key stakeholders (i.e. leadership team, clients, suppliers, communities and employees) to determine how each interprets ethics and morality in order to find the closest applicable understanding that can be agreed on by most and understood by all concerned parties. Leadership alignment and agreement to remain consistent and credible role models of the type of ethical behaviour the organisation expects from all stakeholders. To understand the impact of leadership on the overall effectives of ethics training in an organisation, Smit, P.J., Cronje G.J., Brevis, T. and Vrba, M.J. (2011) argue that: The first and most important requirement for fostering a culture of good ethics in an organisation is leading by example…the chief executive officer and senior managers need to be openly and strongly committed to ethical conduct and should provide constant leadership in reinforcing ethical values in the organisation. They should communicate this commitment as often as possible in speeches, directives, and organisational publications. It is essential that their actions should set the example for ethical standards in their
Thus all stakeholders of the firm suffer. Ethical management means reducing the hardships, spreading the pain equally and bearing some responsibility for the consequences. Although the law limits the duties employers have to employees, ethics sets a different standard. There are moral obligations involved and the firm can’t simply ask the employees to quit as there is already a scarcity of jobs. Layoffs leave the people to the status of disposable objects.
Review of Literature Unethical behavior can tarnish a company’s image and reputation. If a company is unethical, they may have to spend additional money to improve their public image, as well as gain back as many customers as possible. The reason I have chosen to use articles that are quite a few years old and that are not so recent is because I feel that they are very good examples of what I am trying to prove in the terms of ethical behaviour within companies and these specific articles relate well to my chosen topic.