Importance of Business Ethics in Personal and Managerial Effectiveness

personal and managerial effectiveness

Personal and managerial effectiveness: 1
Executive summary
Ethics is becoming irremovable and integral part of business. It has become moral obligation
for businesses to fulfil its social responsibilities. No business can win the market without
following appropriate and reliable code of conduct. An ethical code of conduct is the sum of
moral principles that guide the organisational behaviour to make its actions ethically and
legally right. Organisations started establishing ethical committee within it, so that they can
entrench the rules as a part of training to the employees. By following ethics, an organisation
can get long-term benefit such as credit standing, cost reduction, high goodwill and improved
customer satisfaction.

Personal and managerial effectiveness: 2
Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................6
Literature review...................................................................................................................................6
Discussion and analysis.......................................................................................................................10
Conclusion...........................................................................................................................................13
Recommendations...............................................................................................................................14
References...........................................................................................................................................14
Bibliography........................................................................................................................................16

Personal and managerial effectiveness: 3
Introduction
The importance of business ethics cannot be undermined in today`s world. Business ethics
plays equal important role as sustainable profits do for an organisation. Competition in
corporate world made ethics a major factor in calculating the success of any organisation.
The individual, employee, or society depends on organisation to get benefit from ethics.
Ethics tries to make distinct approaches to classify wrong and right. The importance of ethics
plays an important role in maintaining sustainable profits in a business. Organisation
regulated by morals and ethics are profitable in long run and attains sustainable success.
It becomes important to resolve ethical dilemma occurring due to dynamic environment in
both inside and outside the organisation. Therefore, organisations can focus on smooth
working. Ethical behaviour is a self-regulating behaviour that affects both personal as well as
organisational behaviour. Ethical leadership affects the organisational culture as leader leaves
imprint marks for employees. This organisational culture affects the working of employees
(Morrison, Wilmshurst, and Shimeld, 2018).
There is no golden rule to solve the identified ethical issue. A manager has to evaluate
number of alternatives to solve the problem. Finally, the manager evaluates the alternatives in
the light of dynamic external environment and resolves the ethical problem with most
appropriate alternative.
Literature review
According to Trevino, and Nelson, (2016), ethics is a set of moral rules based on what is
morally good or bad. Business ethics are the moral principles that guide the behaviour of the
organisation that how a business should act. Business actions in an ethical manner mean
differentiating the action as either wrong or right. Ethics provides a set of moral principle and
code of conduct as guidelines to operate a business properly.