Answer to Question #201605 in Management for monice

Question

why is it difficult for managers to maintain ethical and socially responsible behavior

Answer 1

Given the nature of the activities involved in running an organization, being ethical in business is challenging. There is a tendency to explain the behavior: what is unethical is presented as something normal, as if “everyone does it.” There's also a lot of bureaucratic culture: "This is how we do things here," "Follow our lead or you're out of here," and so on. Ethics is not a factor in the company's decision-making process. Experts make decisions that only consider their narrow field and ignore the consequences of their actions on others: a salesperson decides what needs to be done to make sales, regardless of whether this affects manufacturing, harms the environment, or creates comparative injustices for other departments. To put it another way, a partial, limited strategy invites people to act unethically. Besides, Individualism is also prevalent in business: everyone, especially at the senior level, has their own objective. Values are a matter of personal choice. The concept of what is ethical irritates me because it prevents me from doing things my way. The firm becomes an amoral subject: ethics should not be a factor here; at most, it should serve as a decorative element.

When a corporation's commitment to social responsibility isn't aligned with its business objectives, the company loses both internal and external value. Internal advantages could include lower energy expenses due to the use of energy-efficient light bulbs and equipment. External benefits could include adopting rules to hire a particular number of people from the surrounding community or creating a better public image by offering aid to schools in poor areas.