Hello Respected Researchers and HR managers, In this section we will discuss about “Ethical Behaviour in Organisations with different Model“. It is very much important for a Researcher as well as HR Concern person/ manager to know the Ethical Behaviour in Organisations with different Model . If researcher or HR Manager could follow the Points accordingly,it would easier to reach the goal. Let’s have a look…
Ethical Behaviour in Organisations:
⇒ Many of the environmental variables that influence organisational behaviour have also brought attention to the importance of established ethical standards within organisations. Customers are well-informed, sophisticated, and often demanding. This includes demands and expectations about ethical responsibilities that organisations must consider. Ethical standards have become a critical factor in ‘adding value to the customer’ for many organisations, and the customer (thanks to technology, primarily) is in a position to circulate dissatisfaction with unethical organisational conduct very quickly; and this information will potentially reach a very wide audience!
⇒ Organisations have also come to believe that their primary objective—to maximize shareholder wealth—is dependent on behaviour that its stakeholders believe to be appropriate. Child labour, workers rights, environmental issues, bribes, have all become issues surrounding social accountability.
⇒ For our purposes we will define ethical behaviour as morally ‘good’ and ‘right,’ as opposed to ‘bad’ or ‘wrong,’ in a particular setting. This definition speaks to moral principles or beliefs that guide individuals through their interactions with others. Often members within organisations face ethical dilemmas when they must manage the needs and expectations of multiple, diverse stakeholder groups. The challenge for many people is often deciding which behaviour is most ethical and most appropriate for any given situation.
This section introduces three models that have been used to help us determine whether decisions are ethical or unethical:
(1). Utilitarian model:
- This view argues that one would make an ethical decision by considering what would produce the greatest goods for the greatest number of stakeholders. The challenge for managers is that often stakeholder groups have distinct and even competing interests.
(2). Moral rights model:
- The moral rights view is more specific to fundamental rights and privileges shared by all human beings. One might consider whether the decision will protect people’s right to freedom, life and safety, due process, and free speech. Managers must often weigh the outcomes to various groups or individuals when making these decisions. For example, if you are responsible for meeting an economic objective of a 10% return on revenues, yet you must also consider making expenditures to ensure environmental protection (that would not enable you to meet those economic objectives), how might you decide?
(3). Justice model:
- The justice model would encourage one to make decisions based on what is fair and impartial – equity is distributed across shareholders. For example, employees who share similar skills, experience and education should receive the same pay. Managers must be aware not to discriminate between people, and rely on established objective criteria to make decisions.
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