Why is ethical management good management What ethical issue

Why is ethical management good management? What ethical issues do you think is most pressing in the contemporary managerial environment? Why?

Solution

Organization is responsible and accountable to multiple stakeholders who are directly or indirectly influenced by the organization’s operations and practices. The stakeholders for an organization include customers, business partners viz. suppliers, contract manufacturers, distributors etc., shareholders, investors, company board of directors, employees, general public, government and regulatory authorities etc. Hence, the actions of an organization affects one or more stakeholders. This makes it important for the organization to be responsible and ethical in its practices, processes and operations.

Below are the most pressing ethical issues in the contemporary managerial environment -

1. Corrupt practices by the employees for personal gains viz. insider trading, corrupt deals with business partners, selling trade secrets, utilizing firm\'s resources for personal use etc.

2. Firm being not responsible towards its stakeholders viz. environmental damage due to industrial waste and carbon emissions, illegal land acquisition deals, misuse of public, government and natural resources etc.

3. Labor exploitation issues with low pay and huge work load

4. Misguiding the investors by showing fake profits and revenues to attract more investment.

5. Offering substandard products to customers with minimum quality standards