MANAGERIAL ETHICS – A Primer
By
VIKRAM KARVE
Honesty and Loyalty may be often deeply ingrained in the make-up of simple and humble people than in men of high position. A man who was taking bribes when he was a constable does not turn honest when he becomes the Chief of Police. The only thing that changes is the size of the bribe. Weakness of character and inability to withstand temptation remain with the man no matter how high he climbs.
ETHICS and HUMAN RESOURCE MANAGEMENT
It is often stated that the most important resource of any organization is the Human Resource. This article addresses the relevance of ethics in Human Resource Management and discusses various ethical and motivational aspects, including ethical values and ethical decision-making.
Ethics is an integral and vital aspect of Human Resource Management since most of our actions and decisions have ethical manifestations with consequential ramifications in the HR domain.
There is a general belief that ethics is concerned only with financial propriety.
Whilst this aspect certainly involves ethics, ethical management is all encompassing concerning each and every facet of your professional and personal life.
There is a story, probably apocryphal, which illustrates this aspect.
There was a cyclonic storm and millions of fish were washed ashore and were struggling for life on the beach. A man came to the beach and patiently began to pick up the fish, one by one, and throw them back into the sea. An amused passerby asked him what difference it would make, to which the man pointed to the fish in his hand and said, “Ask this fish?”
Thus, we see that seemingly routine decisions, which at the organizational level do not appear to have major ethical magnitude, have large ethical significance at the individual level.
The purpose of this article is to give you a basic understanding of the fundamental concept of ethics, to have you reflect upon the relationship between your ethical values and your behaviour as an HR Manager and to show you how to develop a personalized approach to deal with ethical dilemmas.
Even though only a very small fraction of the employees may indulge in unethical behaviour, it has serious ramifications on the organization as a whole and affects a large number of people who are stakeholders.
Many of us do not even know whether certain of our actions and decisions have ethical implications or not and the consequences thereof.
DEFFINITON and PURPOSE OF ETHICS
What is ethics and what does it deal with?
(a) Ethics is that set of behavioural standards that relate to a set of principles, values and ideals for human conduct. Ethics may be defined as ‘the standards of conduct which indicate how one should behave on moral duties and obligations’.
(b) Ethics deals with two aspects: the first involves one’s ability to distinguish right from wrong, good from evil and propriety from impropriety; the second involves the commitment to do what is good, right and proper.
CORE ETHICAL VALUES
Values are core beliefs, which guide or motivate attitudes and behaviour. They are the established ideals of life that members of a given society regard as desirable.
Ethical Values are directly related to our beliefs concerning what is right, good and proper. They impose moral obligations and are concerned with our sense of moral duty. The 10 core ethical values are:-
(i) Honesty
(ii) Integrity
(iii) Promise keeping
(iv) Loyalty
(v) Fairness
(vi) Concern and Caring for others
(vii) Respect for others
(viii) Responsible Citizenship
(ix) Pursuit of excellence
(x) Accountability
What are your care ethical values?
With how many of the above do they coincide?
Or, do you have other unique ethical values?
Before you can develop an approach to ethical decision making, you should invest some time and effort and attain a solid understanding of your own core ethical values.
ETHICAL DECISION MAKING
ETHICAL PERSPECTIVES OF DECISIONS
There is an ethical dimension to every decision that can be evaluated in terms of its adherence to the previously discussed core ethical values. Thus any of your decisions, which affect other persons, have ethical implications, and virtually all of your important decisions reflect your sensitivity and commitment to ethics.
In summary, as you perform your job in your workplace, what are the ethical dimensions as you deal with your superiors, peers, subordinates and others connected with your work?
Different stakeholders have different ethical perspectives.
Take the case of organizational romance. Whereas, some organizations feel that there is nothing ethically wrong and may even encourage organizational romance and marriage among colleagues by giving various perks and incentives like dating allowance, some other organizations may prohibit or discourage organizational romance. Of course, sexual harassment would be universally considered unethical.
THE PROCESS OF ETHICAL DECISION MAKING.
Ethical decision-making involves the process by which a person evaluates and chooses among alternatives in a manner consistent with his or her core ethical values or principles. Thus when you make an ethical personal or professional decision you: (a) Perceive and eliminate unethical options, and then, (b) Select the best from several competing ethical alternatives by using soft skill management tools like the CATWOE model.
Ethical decision-making requires more than a belief in the importance of ethics. It also requires sensitivity to perceive the ethical implications of your decisions; the ability to evaluate complex ambiguous and incomplete facts and the skill to implement ethical decision making without jeopardizing your career.
Ethical decision-making requires three things; ethical commitment, ethical consciousness and ethical competence.
ETHICAL COMMITMENT
Ethical Commitment is the strong desire to act ethically, to do the right thing, especially when ethics imposes financial, social or psychological costs. Regardless of profession, nearly all people believe they are and should be ethical. While most are not satisfied with the ethical quality of the society as a whole, they believe their profession is more ethical than others and they are at least as ethical as those in their profession.
Unfortunately our behaviours do not consistently conform to our self-images and moral ambitions. As a result, a large number of decent people who are committed to ethical values regularly compromise these values, often because they lack the strength to follow their conscience. Both in your professional and personal life, you will be confronted with a continuous stream of stream of situations in which your ethical commitment will be constantly tested.
ETHICAL CONSCIOUNESS
While weakness of will explains a great deal of improper conduct, a much greater problem arises from our failure to perceive the ethical implications of our conduct. Many of us simply fall to apply our moral convictions to our daily behaviour.
Some of us do not always see ethical issues that are likely to trouble others. Sometimes perfectly legal conduct often appears to be ethically improper or inappropriate.
ETHICAL COMPETENCE
Being ethically conscious and being committed to act ethically is not always enough. In complex situations, which are frequently faced by most of us involved in Human Resource Management, the following reasoning and problem solving skills are also necessary:
Evaluation – The ability to collect and evaluate relevant facts and to know when to stop and how to make prudent decisions based on incomplete and ambiguous facts.
Creativity – The capacity to develop alternative means of accomplishing goals in ways which avoid or minimize ethical problems.
Prediction – The ability to foresee potential consequences of conduct and assess the likelihood or risk that person will be helped or harmed by an act.
THE STAKEHOLDER CONCEPT
A person concerned with being ethical has a moral obligation to consider the ethical implications of all of his or her decision upon others.
Each entity, person, group, institution or constituency that is likely to be affected by the decision is a “stakeholder” with a moral claim on the decision maker. The stakeholder concept provides a systematic way of perceiving and sorting out the various interests involved in our ethical decision making.
The stakeholder concept reinforces our obligation to make all reasonable efforts to foresee possible consequences and take reasonable steps to avoid unjustified harm to innocent stakeholders – an ethical decision maker would never inadvertently cause harm.
A MODEL FOR ETHICAL DECISION MAKING
Three is a need to develop a model of ethical decision making that avoids the shortcomings of the traditional approaches such as the Golden Rule (do unto others as you would have them do unto you) and categorical ethical imperatives (higher truths impose absolute moral obligations which must be obeyed regardless of the consequences).
This model can be practically applied to common problems found in competitive and stressful management situations. The three steps to the ethical decision making model includes:-
(a) All decisions must take into account and reflect a concern for the