Ethical problems are also pervasive because managers make decisions and take actions that affect other people. If those decisions and actions affect other people adversely, or if they hurt or harm them in ways beyond their individual control, then we have an ethical problem which requires some degree of moral analysis in addition to the more common economic analysis.
The Meaning of Ethics
Ethics are generally defined as the principles of morally acceptable conduct of individuals. We define ethics as an individual personal beliefs about right and wrong behaviours. Although this simple definition communicates the essence of ethics, three implications warrant additional consideration:
Ethics are individually defined people have ethics, whereas organisations do not
What constitutes ethical behaviour can vary from one person to another;
and
Ethics are relative, not absolute. This means that although what constitutes ethical behaviour is in the eye of the beholder, it usually conforms to generally accepted social norms
The Meaning of Professional Ethics
Professional ethics designate the moral values that a group of similarly trained people develop to control their performance of a task or their use of resources. People internalise the rules and values of their professional culture just as they do those of their society. They reflexively adhere to professional rules and values when deciding on how to behave.
