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Essay / Managerial Ethics - 1607
Managerial EthicsIn today's rapidly changing business world, many managers face difficult decisions as they walk the fine line between what is legal and what is socially unacceptable. It is becoming increasingly important for organizations to consider many other factors, especially ethically, other than profit maximization in order to be more competitive or even survive in today's business world. today. The first part of this essay will discuss managerial ethics[1] and relevant concepts and theories that affect ethical decision making, such as theories of utilitarian, individualistic approach, moral rights, social responsibility of organizations towards stakeholders and their responses to social demands. , with specific reference to a case study presenting an ethical dilemma[2], in which Mobil stops the sale of products to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on the advice that should be given to any manager in a position similar to that of the mechanic with regard to organizational strategic management, business purpose and social performance evaluation of the company by measuring the economic, legal and ethical aspects. and discretionary responsibilities. It will discuss who should be considered stakeholders and why different aspects could cost more than a manager or organization could have imagined. Many managers and organizations make the mistake of assuming that what is wrong is illegal and what is legal is right and if it is legal. it must be ethical. Yet, many ethical dilemmas present themselves to decision-makers, where right and wrong cannot be clearly identified. They involve conflict between interacting parties – “the individual versus the organization or society...... middle of article......rd Freeman, Andrew C. Wicks, Bidhan Parmar (2004) . Stakeholder Theory and “Corporate Purpose Revisited”. Flight. 15, no. 3, May-June 2004, pp. 364-369----------------------[1] Ethics is defined as “the code of moral principles and values that govern the behavior of a person or group in relation to what is right or wrong" (Samson and Daft, 2005, p.158)[2] An ethical dilemma is defined as "a situation that arises when all alternative choices or behaviors have been deemed undesirable due to potentially negative ethical consequences, making it difficult to distinguish right from wrong” (Samson and Daft, 2005, p.158)[3]. Accommodative response is defined as “a response to social demands within what the organization accepts – often under the pressure of social responsibility for its actions to conform to the public interest” (Samson and Daft, 2005, p..172)