...Why Managers should behave ethically Upon studying the subject at hand, the first question should be what are ethics? Ethics are the inner guiding moral principles, values, and beliefs that people use to analyze or interpret a situation and then decide what the appropriate way to behave. There is a close relationship between social issues and ethically responsible management practices. Since management is always involved in dealing with people, it is a part of social and work life of the manager. Ethically responsible management takes into consideration all social issues in human relations. Workers want to see any action taken by managers is an ethically correct action to consider the management ethically right. Doing things right is when the deed is in line with the interest of the company. The first step in positively influencing employee’s behavior must first come from management. Therefore an ethical program should be implemented and consist of a well-designed code of ethics. This should inspire and promote ethical values, and not just consist of a set of constraints, rules and violations. Instead focus on all stakeholders who are affected by the company’s objective (employees’, customers, supplies, shareholders and the community it shares). A provision of guidance for employees and a system for obtaining advice and speaking up on ethical issues. Allows the employee’s to feel involved in process of creating an environment of accountability. Ethical behavior increases...
Words: 514 - Pages: 3
...What should be the primary objective of managers? Managers are the people that employees and customers both contact when developing an understanding for a potential problem with in the organization. “Managers act as hired agents on behalf of the owners. With this responsibility, managers are to run the day-to-day business operations with the primary objective to maximize stockholder wealth” (Ehrhardt, M. 2014. P.9). The main objective in for profit organizations is to increase revenue while minimizing cost, managers have to go beyond this. “In setting the objectives in accordance to the company vision, the manager sets up goals, develops an action plan, implements the plan, and evaluates the results” (Greenberg, 2013). Meaning they have to be leaders in the work place showing by both example and voice how the organization should be run. They have to be able to develop their employees and give those employees the resources needed to be successful. In my experience in Human Resources most employees perform better when they feel their direct manager has their best interest and will help them grow with in the organization. What responsibilities do firms have to society at large? The responsibility that firms must uphold with in society is the development of value for the stakeholders of the community the corporation occupies. The responsibility to society at large may well be identical with the responsibility to its various communities. Corporations have a special social...
Words: 613 - Pages: 3
...shares they become its owners. | | | A) | True | | | B) | False | | | | | | Feedback:Topic: Ethics AACSB: Ethics Bloom's: Understand Difficulty: Easy LO: 04-02 Page: 110 Stockholders have a claim on a company because when they buy its stock or shares they become its owners. | | 3 INCORRECT | | When applying the moral rights rule, managers should choose the course of action that best protects and upholds their personal rights. | | | A) | True | | | B) | False | | | | | | Feedback:Topic: Ethics AACSB: Ethics Bloom's: Understand Difficulty: Medium LO: 04-03 Page: 119 Managers should choose the course of action that best protects and upholds the rights of all stakeholders. | | 4 INCORRECT | | Trust, the esteem or high repute that people or organizations gain when they behave ethically, is an important asset. | | | A) | True | | | B) | False | | | | | | Feedback:Topic: Ethics AACSB: Ethics Bloom's: Remember Difficulty: Easy LO: 04-04 Page: 123 Reputation, the esteem or high repute that people or organizations gain when they behave ethically, is an important asset. Trust is the willingness of one person or group to have faith or confidence in the goodwill of another person, even though this puts them at risk. | | 5 INCORRECT | |...
Words: 1943 - Pages: 8
...Chapter 1: Distinguish among, planning, organizing, leading and controlling (the four principal managerial tasks), and explain how managers’ ability to handle each one affects organizational performance. Planning: The manager makes it their duty to distinguish the necessary courses of action. In other words the manger develops strategies to achieve high performance levels. Three steps to successful plan are: specify which goals are most important to the organization, which strategies will work best for the organization, and lastly decide how to distribute organizational resources for the desired outcome. All of these factors come into play to develop a specified strategy, which is a series of decisions tailored to the organizations goals. Organizing makes an effective leader because organizational members can be given job specific tasks to perform. This is crucial because it differentiates responsibility between different individuals of the organization. Once an organization is achieved, tasks are easily accomplished because a system was developed to coordinate and motivate members to work together. To lead an organization the leader must have a vision as well as an inspiring statement of what goals they intend the organization to achieve. Managers articulate their organizational vision by enabling employees in a way where everyone understands the part he or she plays. Leadership involves identifying their power and influence, as well as communication skills to coordinate...
Words: 972 - Pages: 4
...a. Why is corporate finance important to all managers? Corporate finance is important to all managers because it allows a manager to be able to predict the funds the company will need for their upcoming projects and think about ways to organize and acquire those funds. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. The organizational forms a company might have as it evolves from a start-up to a major corporation are: sole proprietorships, partnerships and corporations. The advantages of a sole proprietorship are that is is easily and inexpensively formed; is subject to few government regulations and it’s income is not subject to corporate taxation (but is taxed as part of the proprietor’s personal income). A partnership has many many of the same advantages and disadvantages as a sole proprietorship but a partnership is more complicated with regards to liability. For example if the partnership goes bankrupt if any partner is unable to meet their pro rata liability then the remaining partners must make good on the unsatisfied claims by drawing on their personal assets. A corporations has three major advantages: unlimited life (a corp. can continue after their original owners are deceased); easy transferability of ownership interest (stock is more easily transferred than proprietorship or partnership interests); and limited liability (losses are limited to the...
Words: 726 - Pages: 3
...Chapter Questions Chapter 1 1. Why have concerns over pollution become so important for management and Directors? Stakeholders increasingly expect that a company's activities respect their values and best interest. Companies are held accountable to stakeholders (i.e.: responsible for smog, polluted water, acid rain, and oil spills.) 2. Why are we more concerned now than our parents were about fair treatment of employees? Activist groups have increase spreading awareness, leisure time and disposable income increased allowing people to focus on other concerns beside livelihood. 3. What could professional accountants have done to prevent the development of the credibility gap and the expectations gap? They can focus on primary loyalty to the public’s best interest and practice principles of independence of judgment, objectivity and integrity. 4. Why might ethical corporate behavior lead to higher profitability? It’s more effective to focus on providing goods and services required by society efficiently, effectively, legally and ethically than to adopt the high-risk goal of making profit any way possible. 5. Why is it important for the clients of professional accountants to be ethical? An accountant is only as good as the information provided to him/her. We need reliable information to do our job appropriately and efficiently 6. How can corporations ensure that their employees behave ethically? Managers must be motivated and given incentives...
Words: 750 - Pages: 3
...a. Why is corporate finance important to all managers? Answer: Corporate finance is important to all managers because it helps managers decide how to finance an organization . It teaches managers how fix financial problems, evaluate proposals, and determine which projects are financially beneficial to a company and its investors. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Answer: A company may start off as a proprietorship, than advance to a partnership before forming a corporation below are some advantage and disadvantages of each form: 1. Proprietorship: This type of organization is individually owned and has the following advantage; it is easy and inexpensive to form, its income is not subjected to corporate taxes and it is subjected to few government regulation. Some disadvantages for proprietorship are the owner has unlimited personal liability for the business debts, it is usually difficult for proprietors to obtain capital for growth and the life of the business is limited to the life of its founder. 2. Partnership: This type of organization is formed when two or more individuals or entities come together to conduct a non-corporate business for profit. Partnerships have the same advantages as proprietorships i.e. they are easy and inexpensive to form, income is not subjected to corporate taxes and they are...
Words: 674 - Pages: 3
...Case-A,B,C,D,E A. Why is corporate finance important to all managers? -Corporate finance is important to managers because it is a major part of operation. Managers need to know how to maximize value through long-term and short-term planning. B. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. -If a start-up company evolves into a corporation then that company has to write bylaws and setup a charter. A charter must have the name of the corporation, type of work being done, amount of capital stock, number of directors, and the names and addresses of the directors. The bylaws must state how the directors are selected, whether the existing stockholders will have the first rights to buy new shares and procedures for changing the bylaws. The advantages of a corporation include unlimited life, transferability, and limited liability. Disadvantages of a corporation are double taxation, and the time it takes to set up a charter and write bylaws. C. How do corporations go public and continue to grow? What are the agency problems? What is corporate governance? -A corporation goes public through an initial public offering (IPO). Agency problem is when a manager acts in their own best interest instead of the interest of the stockholder. Corporate governance is a set of rules that regulate the company’s behavior towards its directors, employees, managers, stockholders, customers...
Words: 627 - Pages: 3
...A. Why is corporate finance important to all managers? Corporate finance is important to all mangers because it is a component of how a business is run. It is important for managers to know how to direct funds for the betterment of the company. It is also important to mangers in order to know where the company stands financially. B. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each for. The forms a company evolves from proprietorship to partnership and then to a corporation. Some advantages of proprietorship are it is easy and inexpensive to form. It is subject to few government regulations and it’s income is not subject to corporate taxation but is taxed as part of the proprietor’s personal income. Some disadvantages are the proprietor can be held responsible for the debts of the business. Another disadvantage is it is hard to transfer ownership. Also the life is the business in dependent on the owner. Some advantages of partnership are the owner has protection against lawsuits and taxes on earned profits are taxed at the corporate level. Some disadvantages of partnership are, it is difficult to transfer ownership. There unlimited liability and there is a limited life for the organization. Some advantages of a Corporation are the owners are not personally liable for the debts of the company. In addition, it has limited liability. The corporation will continue...
Words: 1129 - Pages: 5
...and/or keep.” Water and sunshine are valuable to plants, money, health and friendship are valuable to man. Organisms must do something, either intentionally or not, to achieve certain ends. Ethics is concerned with what one should seek and how one should act. Nonliving things have nothing at stake. Nothing is good or bad for a river, a rock or a tree. What happens to those things might matter for some organism (such as a river flooding a city to it’s residents, the tree to an owl for it’s nest) but not for these objects intrinsically. Living things have something at stake -- their life. This alternative, life or death, is at the bottom of every alternative faced by a living organism. It is fundamental and inescapable. Every action, however indirectly, either helps or hurts a organism to survive. An organisms continued existence is not assured -- certain actions must be taken by it to survive. Organisms must achieve the values it’s nature requires. As with any organism, the kinds of actions human beings take either impede or advance their life. These are facts of reality that we can observe and apply reason to. In other words, they are objective. They also apply to all human beings, since we all face the same choice and have the same essential nature. This is why ethical principles (a principle being a “general truth on which other truths depend” can be applied by all men to all areas of their lives where alternatives are available to him. Since the struggle to survive is what causes...
Words: 544 - Pages: 3
...Sarah Rose Management Skills Development: MGT 585-02W Fall 2013 Case Analysis Does this milkshake taste funny? George Steins’ Ethical Dilemma * Discuss all of the reasons why you believe George might act unethically and remove the filters, allowing the maggots to remain in the mix. The first reason George might act unethically is due to Social Learning Theory. “Analysis revealed that perceived learning opportunities were shaped, enabled, and constrained by a variety of social, cultural, structural, and process-related imperatives. This was manifested through two learning systems: (1) a formal learning system directly managed by the organization and (2) an informal system that was fostered through strong social networks and driven by the organizational culture. From this investigation, we posit a social theory of learning, which encompasses sharing knowledge and experience through social interaction” (O’Toole, 2011). This is an article for developing learned systems by the Australian Army in their ‘fighting for knowledge’ campaign to understand learned systems in a military setting. Using a focus group of over 150 armed personnel to understand some of the cultural and social systems enforced. Social theory is a theory that states that we learn through observation and our direct experiences with others (Robbins. 2013). The social learning theory is enacted by both formal learning systems, decreed through management, and informal social networks. In the case George is...
Words: 2202 - Pages: 9
...Saad Rauf Rathore 5 December 2010 Should Businesses Behave Ethically? According to a study on ethics by the Santa Clara University, a number of years ago sociologist Raymond Baumhart conducted a survey asking people about what they think of ethics. The results showed many people linking ethics to their feelings, their religion and standards set by the society (Manuel et al, para. 2). Manuel Velasquez and other authors of an article published by the Santa Clara University on business ethics pointed out flaws in the responses. They believed that feelings sometimes deviate from ethics because a person may feel to do something that is not right (Manuel et al, para. 4). Moreover, they argued that most religions advocate high ethical standards, yet these standards cannot be identified with religion because if they were, they would have only applied to religious people (Manuel et al, para. 5). Finally, saying that ethics are standards that a society set was proved wrong as the standards of behavior in a society can diverge from ethics, considering Nazi Germany which was a society that became morally corrupt (Manuel et al.). This was what ethics are not. Then, what are ethics? Ethics are the well founded standards that are backed up by consistent and well founded reasons. These standards include rights, obligations, honesty, fairness, benefit to society or specific virtues. For example, the rights may include right to life and right to freedom whereas reasonable obligations may...
Words: 3013 - Pages: 13
...jon24565_ch05.qxd 11/2/05 1:22 PM Page 138 C H A P T E R 5 Business Ethics and the Legal Environment of Business Learning Objectives After studying this chapter you should be able to: 1. Understand the relationship between ethics and the law and appreciate why it is important to behave ethically. 2. Differentiate between the claims of the different stakeholder groups affected by a company’s actions. 3. Identify the four main sources of business ethics, and describe four rules that can be used to help companies and their employees behave ethically. 4. Describe some methods companies can use to strengthen their ethical rules and positions. 5. Appreciate the important ways in which a nation’s business laws and regulations affect business commerce, occupations, and organizations. WHY IS THIS IMPORTANT ? A friend who is an A-student has offered to write your paper, which is worth 25% of your grade, for $50. You need the course to graduate because you only have a low C average. You hate writing, do it very poorly, and know others have had good results submitting this student’s papers as their own. Will you pay the money and submit the paper or submit your own paper and pray for a good result? This chapter will help you learn how to act ethically when facing dilemmas in your business and personal life. This is important because the decisions you make will affect your own future and those of stakeholders of the organizations that...
Words: 21076 - Pages: 85
...of money through Balik and Kiefer. DellaTorre is very bright, and she would like to understand in general terms what will happen to her money. Your boss has developed the following set of questions you must answer to explain the U.S. financial system to DellaTorre. a. Why is corporate finance important to all managers? The importance of corporate finance is that it helps managers understand the health of the company and how to act accordingly with a common guideline. The responsibility for controlling company assets falls upon management as a whole. Managers need to be able to make decisions that will benefit the company and in order to make those decisions they need to have insight into the financial health of the business. If not they could possibly lose funding and find their projects continually short on financial support. Every decision made by management essentially has a financial impact. Managers have a responsibility to increase the shareholders’ stake in the firm. b. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Sole Proprietorship: Sole owner of a business. The manager and the owner is the same person. The sole proprietorship has unlimited liability. You pay taxes as owner and for the business ones. The advantage is the ease with which it can be establish and the lack of regulation s...
Words: 1388 - Pages: 6
..."Ethics is important for managers involved with Management Control Systems (MCS) because ethical principles can provide a useful guide for defining how employees should behave." [Management control-related ethical issues and analysis] It is important for an organization to have good ethics as unethical behaviors are costly not only to the individuals involved but also the organization, market and the society.' People learns from history,' each time a serious unethical issue arises, the government creates extra laws and standards for the governing of organizations, however these extra enforcements mechanisms "are incomplete, imperfect, and expensive, and have the typical drawbacks of rigid action controls." [Management control-related ethical issues and analysis] Business ethical issues arise because in most cases ethical actions may not generate the best outcome for an organization, "ethical individuals sometimes must make actions that are not in their own self-interest or their organizations owners' best interest." [Management control-related ethical issues and analysis] There are many dilemmas when making ethical decisions, often including the struggle between being selfish and doing 'what is right'. A culture will define the individual and group ethics within an organization. To control unethical behaviors and to set an ethical issue free environment within an organization, senior managers will need to have well developed ethical reasoning skills, managers need...
Words: 2445 - Pages: 10
