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– 90 –
• How the community can be served many pressures affect business
leaders. Ethical considerations are sometimes difficult for business leaders
when they must choose among different priorities. Making decisions based
on the needs of employees, customers, shareholders, and the commu-
nity requires a good leader. All good leaders are interested in achieving
ethical standards and in motivating employees to do what is right.
There are laws that guide business leaders.
Breaking laws can lead to arrest and imprisonment. For example,
one company’s sales manager decided to discount prices of old fruit,
which turned out to be contaminated. In the end, some children who
ate the fruit got very sick with hepatitis A. The disease was traced to the
company’s spoiled fruit, and several of the company’s leaders were
indicted on criminal charges. Today the company no longer exists.
But laws are not always enough to ensure that behavior is ethical.
Individual leaders and their decision-making behaviors (ethical or
unethical) set examples for employees. In the United States, anony-
mous surveys show that 30 percent of managers admit they have
submitted inaccurate reports. Clearly, there is a need to develop ethical
decision-making skills.
ON-THE-JOB ETHICAL CONFLICTS
Four main ethical conflicts confront leaders and managers in
business:
1. Conflict of interest — An individual may be able to
achieve personal gain from a
decision he or she makes.
2. Loyalty versus truth — An individual must decide
between loyalty the company and
truthful-ness in business
relationships.
3. Honesty and integrity — An individual must decide
whether to be honest or lie, and
whether to take responsibility for
decisions and actions or blame
someone else.
4. Whistle-blowing — An individual must decide
whether to tell others (media or
government authorities) about
the unethical behavior of the
company or institution.
• How the community can be served many pressures affect business leaders. Ethical considerations are sometimes difficult for business leaders when they must choose among different priorities. Making decisions based on the needs of employees, customers, shareholders, and the commu- nity requires a good leader. All good leaders are interested in achieving ethical standards and in motivating employees to do what is right. There are laws that guide business leaders. Breaking laws can lead to arrest and imprisonment. For example, one company’s sales manager decided to discount prices of old fruit, which turned out to be contaminated. In the end, some children who ate the fruit got very sick with hepatitis A. The disease was traced to the company’s spoiled fruit, and several of the company’s leaders were indicted on criminal charges. Today the company no longer exists. But laws are not always enough to ensure that behavior is ethical. Individual leaders and their decision-making behaviors (ethical or unethical) set examples for employees. In the United States, anony- mous surveys show that 30 percent of managers admit they have submitted inaccurate reports. Clearly, there is a need to develop ethical decision-making skills. ON-THE-JOB ETHICAL CONFLICTS Four main ethical conflicts confront leaders and managers in business: 1. Conflict of interest — An individual may be able to achieve personal gain from a decision he or she makes. 2. Loyalty versus truth — An individual must decide between loyalty the company and truthful-ness in business relationshi ps. 3. Honesty and integrity — An individual must decide whether to be honest or lie, and whether to take responsibility for decisions and actions or blame someone else. 4. Whistle-blowing — An individual must decide whether to tell others (media or government authorities) about the unethical behavior of the company or institution. – 90 –
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