Ethical practices make good business sense, because ethical companies suffer less resentment, less litigation, and less regulatory oversight. Furthermore, ethical managers and ethical businesses tend to be more trusted and better treated by employees, suppliers, stockholders, and consumers.
Organizations are a reflection of society; they are the method by which individuals unite to form a network of common interest. And each organization is a fluid enterprise. At its center are the managers and executives responsible for directing the resources of the company. Shareholders own the capital and expect a return on their investment. Workers produce the goods and expect a decent wage and safe working conditions. To have a successful enterprise, each group must be responsive to the others and balance its interest against the interests of the others. When the balance is upset or when the interests pull too hard against each other, the ethical system is damaged. For an enterprise to continually give value to human effort and to encourage creative achievements, a balance of all interests is required ( Parry, 2001).
Administrative actions are shaped by three domains: legality, free choice, and integrity. The law defines and constrains the limits of potential actions, specifying the bounds of lawful behavior. ...Show more