Answer to Question #203880 in Management for PAS

Question

Subject : Business Ethics and Corporate Governance

1. Write short note on the following : - Major reasons for ethical dilemma.( please give at least 10 reasons with elaboration )
2. Explain the significance of ethical leadership in business policy formulation. ( please give at least 10 points for significance with elaboration )

Answer 1

1. Causes of ethical problems

a. Lack of integrity - it the dishonesty of workers in the organization

b. Organizational problems

Those are problems caused by the company such as lack of clear goals and objectives other company, inadequate rules and regulation among others

c. Competing interest - workers may clash over the limited resources in the organization

d. Pressure from the management - some companies set unrealistic targets for employees to achieve which may cause violence in the organization.

e. Discrimination and ambition - some employee may be having financial pressures or hunger for being recognized by the top leader in the company to get some reword and if they don't get, they may decide to do something unethical including violence, theft, and others.

f. Value ethical behavior. This is when the organization lacks clear norms that govern workers' behavior.

g. Used as negotiations tactics

Doing Business with other companies may also cause a conflict as they try to get the best deals or price may cause some employees to negotiate in bad faith or even lie to get a concession.

h. Limited resources

The ethical issue may arise when you have a decision to make under limited resources the force workers to choose one out of few available resources

I. Ignorance

Another cause of ethical dilemma is the ignorance to talk action when worker violates organization norms.

J. Cost-benefit analysis - when. End business culture is committed to achieving the bottom line at all costs the cost-benefit analysis may cause a leader to decide their risk. Thus an unethical decision.

2. Significance of ethical leadership in business policy formation.

a. It would customer loyalty

b.it evoke confidence in potential investors

c.it develop trust in partners and dealers

d.good press about the organization

e. More freedom and less micromanagement

f.it enhance workers performance and motivate morale

g. Self-satisfaction

h.safe legal practices

I. healthy workplace environment

J. Attracts quality workers