Mr. Chatanon   No. 49

 

Business Ehtics

 

 

            Business ethics deals with what is “ right and wrong” in organizational decision, behavior and policies. Business ethics provides principles and guidelines that assist people in making informed choices to balance economic interests and social responsibilities. There are several problematic events that occur among stakeholders in rapidly changing business environments. These environment forces affect not only the industries but also an organization and individual. Therefore,  it is interested to study the business managers’ perception regarding to the problems of managerial business ethics in Thailand and to examine the real problem affects an individual, group and organization that should be aware of  this ethical issue of a business situation, then making a solution or decision to the problem before it becomes an ethical dilemma. 

 

 

            The following are the results of interviewing five managers of different business regarding to the ethical problem, root causes for the problem and the problem solving.

 

 

            The first manager, he works in a bank as a credit card service manager. He revealed his perception to the questions: (1) the ethical problem, he said most of the employees had high responsibility or ethic to their job and customers. They tried to keep the customers’ confidential information and made them satisfaction. However, some employees lacked of knowledge and awareness to threat their customers (especially the new employees) and they have not been trained by the organization before starting to work. When they  confronted  with ethical problem issue, they always were  influenced by their supervisor. (2) Root causes for the problem, Most customers didn’t want the bank to reveal their finance status for security reason and personal image. Moreover, The governmental laws controlled the banks that had to keep customers’ privacy right. (3) Problem solving, Banks should strengthen their regulation and  laws that are more sufficient to all business units and giving an ethical issue training to adjust an attitude of the existing employees to increase awareness and social responsibility.   

 

 

            The second Manager , he works as a technology consultant for manufacture and he revealed his ethical problems mostly occurred because relationship of customers and employees become closer, then it increased the degree of  favor or biases.  Sometimes, the subordinated employees do by the command of his or her boss by conflict with personal value.  Root causes for the problem were about the value and policy of organization motivate the employees to focused on benefit more than social responsibility. Problem solving for this ethical problem should focused on management teams or leaders to encourage them pay attention on balancing positive and negative in lack of good managerial business ethic for the firm.

 

 

 

 

            The third Manager , he works as a sale manager of consumer products. He revealed his ethical problems mostly concerned with benefit from commission or motivate employees by material but pay salary to them lower than the standard. The working environment was also very poor, the firm didn’t encourage team player. So, the employees and their family had to survive in society. They worked with a high pressure of  lack awareness to human rights and a moral responsibility to their customers and colleagues. Root causes for the problem was the leader of company employs the inappropriate policy and value to his firm and also lacked of current management knowledge. Problem solving. Giving the leader an example of  the failure management firm with ignore to threat his employees in fair deal and the successful ethical management firm that encouraged team player and take care the employees as same as customer. In addition,   To show a benefit and cost of unethical results in short-run  and long- run of  business management.

 

 

            The forth manager, he works in the hospital as a marketing manager of health checking service. He revealed his ethical problems mainly came from human resource. The department hired insufficient employees or low pay employees and ignored to give a train before begin to work because it incurred cost to the firm. Then the employees worked without direction to compatible with the firm’s policy and clear culture. In order to maintain customers and keep a good image of the firm, the employees sometimes had to tell untruth to the customers. Root causes for the problem concerned with management team pay less attention on long–term business profit of the firm and they lacked of  current management knowledge and appropriate attitude toward human right. Problem solving Showing the facts of  the successful firm with ethical issue training course for management term and  to improve hiring process of human resource department for a standard requirement of the firm for developing competence of employees in future.

 

 

            Fifth Manager, He works as an educational consultant of  language school.

 He revealed his ethical problems mostly concerned about the firm policy that  seek to much on a maximize profit than a social responsibility or human right . Thus, some students or customers got a worsen outcome than they expected and caused them lost their career opportunity  in their life. The firm gave them an exaggerate information of a course or school, after they found an disappointed suggestions. Then, they felt unhappy to study there  This problem was quite a serious problem because it affected to many people that involve in the family. The firm increased a personal pressure and pain to the employees to cheat their customer for its maximize profit. Thus, the employees had to choose this ethical dilemma whether self-interest or human right. Root causes the problem was similar to other business which leader put the firm’s value on a maximize profit by using the low cost of existing resource. So, they set up their own regulation to exploit the benefit from the event. Problem solving. Giving them a logic and facts of  successful firm with a ethical course training for all level of employee and  showing the successful results of the firm that employs to balance the economic interest and social responsibility in the business situation.

 

 

            Conclusion

                

             

                 From the interview results of each business manager regarding to ethical problem show that the problem are not only a personal matter, it is also affect  the different levels of business units of the organization and how it move to other business ethic levels. Ethical and moral issue in business can be examined at least five business levels including individual, organization, association, societal and international. Additional, a framework for classifying ethical dimension can help to identify and separate into three dimensions; (1) ethical system ( e.g. a country or region’s customs, value, laws and policy), (2) organization (e.g. ways of doing business or value, culture and mission) and (3) personal ethics(own value and standards). Therefore, I would conclude this study according to the five business ethical levels and separate into three dimensions which the managers have to make a decision to choose from the ethical dilemma situation.

 

 

            At the individual level, all managers feel difficulty to chose his own ethics between a business professional and a human rights. But as a business professional, the managers have to help their firm earn a maximize profit. So an ethical dilemma occur because they have to choose between their job or own value.

 

 

            At the organizational level, the firm’s members should examine the firm’s policies and procedures and code of ethics. All managers are representative of  the firms and the business leaders, so they have to confront with many questions from their stakeholders and they also have to save the firm’s image and solve all problems that may be harmful the firms’ reputation in order to keep the firm survive in the existing industry.

 

 

            At  the association level, all managers have to make decision whether they violate their value or they are responsible in the role of business leader of the organization. So conflicts of interest and conscience may arise in such situation.

 

 

            At the societal level, the managers depend on the different  legal and moral acceptability of  behavior in the organization because some business activity may be accepted by different value, norm or regulation.

 

 

            The root of ethical problem can be revealed and identified by the 3 ethical dimension of  ethical system(country), ethical of the organization(ways of doing business) and ethical of the person(own value), because these dimensions(value, norm, custom, laws, policy) are most influenced to the manager to choose the ethical dilemma and make a decision in different level. They have to aware of  these different level of influence on them in order to get a good outcome of their organizations.

 

            For solving the ethical problem, the previous study stated that value can be gained from teaching ethical principles and training people to use them in business. Given the facts and circumstances of  balancing advantage and disadvantage of the outcome of a situations. Decision depend on facts, inferences , rigorous, logical and ethical reasoning. However, a rational manager should understand the basis ethical principles and stakeholders analysis in order to make an accurate direction for the organization.

 

 

The following is an example of successful ethical principle management of South West Airlines that I will keep in mind for considering of my future management of an organization:

 

 

1.      Employees come first, customers second.

2.      The team is important, not the individual.

3.      Hire for attitude, train for skills.

4.      Think like a small company.

5.      Eschew organizational hierarchy.

6.      Keep it simple.

 

 

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