Factors Influencing Managerial Ethics

In this assignment, we will explore the importance of ethical behavior in an organization. To establish a culture of ethics, organizations should have clear rules and codes that are consistently enforced, and leaders should lead by example. Furthermore, providing ethical training and supporting employees who face ethical dilemmas is crucial. Additionally, managers' personalities and behavioral traits play a significant role in shaping their decision-making. The three levels of moral development - preconventional, conventional, and post-conventional - were discussed. Finally, the assignment highlighted the importance of organizational structure and systems in creating an ethical organization.

Introduction
In this CA I will be talking about (1) Defining ethics and how ethical behaviour relates to
behaviour governed by law and free of choice (2) And I will also explain the utilitarian,
individualism, moral rights and justice approaches for evaluating ethical behaviour (3) The
factors shaping a manager’s ethical decision-making (4) Lastly, I will discuss how ethical
organisations are created through leadership and organisational structure and systems.
Define ethics and explain how ethical behaviour relates to behaviour governed by law
and free choice
Ethics is a broad concept that cannot be confined into a particular definition.ethics are
defined as the principles, values that govern the behaviours of a person or a group in relation
to ‘rights’ and ‘wrongs’.now talking about Behaviour,,its can be classified into three different
categories which includes domain of codified law, in which values and standard are written
into the legal system and after which is been passed into law. The second is the domain of
free choice which is at the end of the diagrams; this free choice relates to behaviour in which
the law has no power but only individuals and organisation have freewill, between codified
law and domain of free of choice lies the domain of ethics, this domain of ethics has no
specifics law, but still they still have a standard of conduct based on shared principles and
values which guide the individual and the organisation.
High Low
.
Most ethical dilemmas involve conflict between the various needs of individuals and
organisations and in some cases, the organisation and society as a whole. Manager benefit
from a normative strategy to guide their decision making.
Domain of Codified
Law
(Legal Standard)
Domain of ethics
(Social Standard)
Domain of free
choice
(Personal Standard)

Briefly explain the utilitarian, individualism, moral rights and justice approaches for
evaluating ethical behaviour
The utilitarian approach
Utilitarian approach holds moral behaviours to produce the most influential results in relation
to positive morals. which can also be known as utilitarianism, a moral principle that says
correct actions are those that provide the greatest volume of benefits over majority of people.
The individualism approach
This Individualism approach can also be referred to as egoism, compete that acts are
moral ,positive or negative moral, when they encourage the individual's best long-term
interests. Individuals analyze the best long-term advantage to themselves as a measure of a
decision's goodness. The action that is supposed to produce a greater proportion of good for
the individual compared with other alternatives is the right one to perform.
The moral-rights approach
Moral right are the ones that people have their fundamental human rights which cannot be
taken away by someone's decision. An ethical decision is one that avoids interfering with the
fundamental rights of others. Levels of individual moral approach includes the
preconventional level, conventional level and principled level. There are four stages of moral
approach, individual characteristics, the organization’s structural design, the organizations’
culture and the intensity of the ethical issues. People proceed through the stages of moral
development consecutievly. There is no guarantee of continued moral development. Hence,
an ethically correct decision is one that best maintains the rights of those affected by it.
These rights include the right of free consent, the right to privacy, the right of freedom of
conscience, the right of free speech, the right to due process, and the right to life and safety.
The justice approach
This is another moral decisions that are usually based on standards of equity, fairness, and
impartiality. Moral decision are those that best maintain the right of people affected by them.
The following are three types of justice that managers are of concerned by: distributive
justice requires that different treatment of people may not be based on arbitrary

characteristics; procedural justice requires that rules be administered fairly. Rules should be
clearly stated and be consistently and impartially enforced. Finally compensatory justice
argues that individuals should be compensated for the cost of their injuries by the party
responsible. Individuals should not be held responsible for matters over which they have no
control on. The organisation rules are enforced fairly and impartially and follow all legal
rules and regulations. The interest of the underrepresented stakeholders and the right of
employees are protected.
There are three types of justice approach which are:
 Distributives justice
 Procedural justice
 Compensation justices
Different treatment of people should not be based on arbitrary characteristics, in case of
substantive differences, people should be treated differently in proportion to the differences
among them. Rules should be clearly stated, consistently and impartially enforced. Individual
should be compensated for the cost of their injuries by the party responsible. Individual
should not be held responsible for matters they have no control over. Code should be clearly
put in place to the employees. All levels of management continually assure the importance of
the ethics code and the organization’s commitment to the code.
Ethical behaviour in an organization.
 Code of ethics and decision rules should be established
 The managers should lead by examples
 Ethical training should be provided
 Support for individuals who are challenged by ethical dilemma should be provided

Describe the factors shaping a manager’s ethical decision-making there are specific
personalities and behavioral traits that individual managers bring to their role. Personal needs,
family influence, and religious background. Specific personality characteristics, such as ego
strength, self-confidence, and a strong sense of independence may enable managers to make
certain ethical decisions. There are level to this:
Preconventional. At this stage the manager is more concerned with external rewards and
punishment and also to obey authority to avoid any personal damages.
Conventional level. This is when managers learn to conform to expectations of good
behavior as defined by colleagues, friends, family, and society.
Post conventional level which is also called principle level, at this level individuals develop
an internal set of standards and values and they likely to disobey rules that violate these
principles. Internal values are important than expectations of significant others. Majority of
managers function at the conventional level. “A few managers have not advanced beyond the
preconventional level. Only about 20 percent of American adults reach the principled level
of moral development”. Women make moral decisions not on a set of absolute rights and
wrongs but on principles of not causing harm to others.
Discuss how ethical organisations are created through leadership and organisational
structure and systems
Management is responsible for making and supporting conditions in which people are most
likely to behave themselves. Managers must take a steps to ensure that the company stays on
an ethical footing. Management methods for helping organizations should be more
responsive including leadership skills for example, codes of ethics, ethical structures, and
supporting whistle-blowers.
Organizational structure bring up to the way an organization positions people and their jobs
so that its work can be performed and its goal can be met.
The ethical culture of an organization is the larger part of organizational culture that
represents the aspects of the culture that affect how employees think and act in ethics-related
situations. According to EthicSystem.org “Most employees look outside themselves for
guidance about how to think and act”. Ethical culture can influence employees to do what is

right thing or wrong. Individuals are socialized into an organization’s culture, but they may
also internalize values that accord with their own beliefs, making for a very smooth
transition.
Ethical culture is a multisystem framework of formal and informal organizational systems.
To have a fully aligned ethical culture, the systems must all send employees consistent
messages that point in the direction of ethical behaviour. Cultures can range from strongly
aligned ethical cultures to strongly aligned unethical cultures.
This are the factor that can affect employee ethics
 Organization’s culture is one of them, there is one of the approach to managers established
and to uphold an organization‘s shared values.
 The second one is the purpose shared values, which involve in guiding managerial decisions,
shaping employee behavior and to influencing the direction of marketing efforts and
building team spirit.
 The bottom line on shared corporate value is the third, an organization’s value are reflected
in the decisions and action of its employees.

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