ETHICS, VALUES AND THE MANAGER
OVERVIEW
=THE MANAGER AS AN INDIVIDUAL
=THE MANAGER AS AN AGENT
=THE MANAGER AS A MORAL LEADER
THE MANAGER AS AN INDIVIDUAL
Conscience
-the moral compass of a human being
-provides the inner voice, which senses right and wrong actions and activates the alarm when an action is on the wrong track
-it is an 'obstacle' against questionable conduct
-a manager must be guided by his or her conscience
Self-interest
-Self-interest is the sense of wanting to do or accomplish something that is advantageous and of interest to own self only
-In economics or businesses, self-interest serves as a source of motivation to decide on a particular course of action (Adam Smith)
-Acting to maximize self-interest is considered rational in the sphere of economics and business especially if it is in the long-term interest of the individual firm or person - enlightened self-interest.
Integrity
-What is integrity? Ordinarily, integrity has been associated with sincerity, trustworthiness, and honesty
-Integrity is the culmination of the development of intellectual and moral virtues in a person
-A person is considered to have a good character when all virtues are integrated in his personality or what some philosophers call unity of virtues
Integrity has two traits, namely humility and courage
-In business, values such as honesty, quality, profitability, sensitivity, sincerity, and high ethical and moral standards, are very important.
-Every individual in an organization should know how to integrate this set of corporate values into day to day practices aligned with corporate principles. By so doing, they can accomplish integrity in their own selves, which then leads to the integrity of the corporation as a whole.
THE MANAGER AS AN AGENT
-Agency in the context of managerial roles refers to managers as economic agents of the organizations they represent
-Two basic roles of managers include:
==member of a family, as a father or a mother, and as a husband or a wife, who is bound by economic, religious and cultural values, and
==member of a group, who is expected to share and contribute to achieving the organization's goals.
Agency roles:
Planning, organizing, and budgeting,
Decision-making,
Managing people,
Informational tasks,
Taking care of employees' welfare, and
Leading and building performing teams.
Agency Problem
Agency relationship can be defined as a contract between principals (owners/shareholders) of a firm and an agent (manager)
Agency problems arise when there is a conflict between a firm's managers and its shareholders such that the goals of the principals are not among the agents' priorities
Examples of Agency Problems
Communication breakdowns between the management and owners,
Conflicting principles and ethical values between the management and owners
Conflicts between company and personal values
How to handle?
implementing the share option scheme, which gives a share of ownership to the managers,
introducing performance bonuses, and
monitoring managers' performances, for instance, by constantly auditing their records
THE MANAGER AS A MORAL LEADER
The features of leadership are:
power,
value-laden,
followers and leaders,
changes toward betterment, and
mutual goals and purpose.
Amongst the leadership qualities are:
integrity, prudence, sharing of core values and purposes,
inspiring others, including followers and associates through stories of identity,
encouraging communication and providing mechanisms for voicing opinions,
defining, planning and carrying out business strategies effectively in line with core purposes,
willing to take risks,
having long term goals and visions, and
encouraging others to not give up and learn from mistakes.
The core purpose of an organization is the reason for its being or the reason for the organization's existence
The core values of organizations are the things that make the organizations what they are and these values define the scope of the organizations' goals
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