Ethical and Social Responsibility
Management Ethics refers to the applications of moral standards to management behaviour. Social Responsibility on the other hand, is the obligations a business has over and above its legal responsibilities to the wellbeing of employees and customers, shareholders and the community as well as the environment.
Ethical Issues Relevant to the Internal Environment
- Fairness and Honesty. Managers must obey all laws and regulations and society expects managers to tell the truth and avoid misleading and deceptive information.
- Respect for People. Managers need to treat employees with respect and employees needs to treat managers with respect.
- Conflict of Interest. A Conflict of interest occurs when a person takes advantage of a situation or piece of information for his or her own gain rather than for the employers best interests. Corruption occurs and then once this is exposed it causes damage to the organisations image.
- Financial Management. The Business’ movements must reflect that of the business not those favouring the manager’s personal gain. This can be assessed using an Audit. An Audit is an independent check of the accuracy of financial records and accounting procedures.
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