Define Ethics. Discus the ethical approaches.
Ethics are the moral that govern the actions and decisions of an organisation or group. It therefore follows that values are fundamental to ethics
Ethics can also be defined as the process of clarifying what constitutes human welfare and the kinds of decisions and behaviours necessary to promote it.
ETHICAL APPROACHES:
There are three (3) approaches to personal managerial decision making
- The Utilitarian approach
This approach judges the effect of decisions and behaviours on others, with the primary objective of providing the greatest number of people. It focuses on actions or behaviours as opposed to motives. In this case the manager should consider the effect of the alternative actions on those who will be affected, then select the alternative benefiting the greatest number of people.
The manager acknowledges that this alternative may help some but harm others, but for as long as potentially positive results outweigh negative results, the decision is considered ethical.
A good business example could be the merit pay system, whereby employees are paid different rates. The ethics lies in the fact that those who perform best receive the greatest reward.
The utilitarian approach is based on the following standards:
- Organisational goals g. managers should aim to satisfy customers, suppliers, leaders, employees, and stakeholders. Maximising profits provides the greatest good for the greatest number of people.
- Efficiency: Minimising input cost
- Conflict of Interest: The manager’s personal interest should not conflict with those of the
THE STRENGTHS OF THE UTILITARIAN APPROACH
- Encourages efficiency and productivity
- It is consistent with profit maximisation and hence easier for management to understand
WEAKNESSES
- It is impossible to clarify all important variables
- May result in biased resource allocation, especially when those affected are not represented
- Can result in ignoring rights of some who are affected to achieve utilitarian outcomes
2.The Moral Rights approach
This approach judges decisions and behaviours by their consistency with fundamental personal or group liberties and privileges.
This view maintains that managerial decisions should be consistent with fundamental liberties and privileges (e.g. life, freedom, health, privacy, property). These privileges are usually governed by the constitution or the bill of rights.
The following are some of the moral rights that should be taken into cognisance in managerial decision making. Life and Safety, truthfulness, privacy, freedom of conscience, private property etc.
THE STRENGTHS OF THE MORAL RIGHTS APPROACH
- Protects the individual from injury consistent with freedom and privacy
WEAKNESSES
- Can imply individualistic or selfish behaviour that may result in anarchy
- Can foster personal liberties that may create obstacles to productivity and efficiency
3.The Justice approach
This judges decisions and behaviours by their consistency with an equitable, fair and impartial distribution of benefits (rewards) and cost among individuals and groups.
The justice approach is subdivided into the following:
1.Distributive Justice Principle: Individuals who are similar in relevant respects should be treated Conversely, individuals who differ in respects should be treated differently in proportion to the differences between them.
2.Fairness Principle: This principle holds that the employee should follow the rules of the organisation, provided two conditions are met.
3.Natural Duty Principle: This, on the other hand, requires management to base their decisions on a variety of universal obligations, entitling.
THE STRENGTHS OF THE JUSTICE APPROACH
- Attempts to allocate resources and costs fairly.
- Is the democratic principle.
- Protects interests of those affected but having less representation or lacking power.
WEAKNESS
- It could encourage a sense of entitlement that reduces risk, innovation, and productivity
- Can result in reducing rights of some to accommodate rules of justice
