DON BOSCO INSTITUTE OF MANAGEMENT

ASSIGNMENT ON:
BUSINESS ETHICS

Topic: MANAGING ETHICAL CONDUCT IN MODERN TIMES .

Submitted To: BIKASH GOGOI MBA FACULTY

Submitted by: MARCEL HEMBROM MBA 6TH TRIMESTER B-10-017 (30.01.12)

MANAGING ETHICAL CONDUCT IN MODERN TIMES: Ethical principles provide the foundations for various modern concepts for work, business and organisations, which broaden individual and corporate priorities far beyond traditional business aims of profit and shareholder enrichment. Ethical factors are also a significant influence on institutions and public sector organisations, for whom the traditional priorities of service quality and cost management must now increasingly take account of these same ethical considerations affecting the commercial and corporate world. The modern concept of ethical organisations encompasses many related issues including:          Corporate social responsibility (CSR) or simply social responsibility Ethical management and leadership Fair-trade Globalization (addressing its negative effects) Sustainability Social enterprise Mutual cooperatives, employee ownership Micro-finance, and Well-being at work and life balance, including the Psychological Contract.

Any other aspects of good modern leadership, management and organisations which relate to ethics could be added to the list. Ethics is a very broad area. We can see that are very many different definitions and interpretations of the concept, and we could feel free to develop your own ideas about ethics in terms of meaning, composition, methods and implications. Managing Ethics in the public sector: Ethics in the public sector is a broad topic. In general, ethics is a branch of philosophy which seeks to address morality in modern times. In the public sector, ethics addresses the fundamental premise of a public administrator s duty as a steward to the public. In other words, it is the moral justification and consideration for decisions and actions made during the completion of daily duties when working to provide the general services of government and no profits organisations. Ethics are an accountability standard by which the public will scrutinize the work being conducted by the members of these organizations. Decisions should be based upon ethical principles, which are the perception of what the general public would view as correct. Having such a distinction ensures that public administrators are not acting on an internal set of ethical principles without first questioning whether those principles would hold to public scrutiny. It also has placed an additional burden upon public administrators regarding the conduct of their personal lives. Public sector ethics should be to create a more open atmosphere within governmental operations. Modern Government's ethical origins: Government officials should serve the people, managing the resources of others. Along with this stewardship, there should be an expectation from the public that in conducting daily activities, the officials should practice fairness and equality. They are also expected to maintain openness in their workings to ensure that they are operating within the public's perception of what is "right." This concept of ethics, a branch of philosophy which seeks to address morality, is not a relatively new idea within government. There is a treaty which is often viewed as a tool of how a public official

should not act in modern society, as it is an enumeration of the specific steps one should take to maintain control and power. This idea of control and power conflicts with the underlying principle of being a steward to the general public. As such, this treatise is a springboard for ethical issues in modern day times. Modern Ethical standards: In defining bureaucrats as public administrators, approaches ethic standards in government as a requirement due to the nature of the work of administrators. Because bureaucrats govern through authority that is discretionary, and because they are not elected, the ordinary means of popular control are inapplicable. It is assumed that public administrators are working to benefit the general public s needs. When an elected official does not act in line with the public s expectations, they can be removed from office. However, public administrators are protected with due process rights as government employees, and ethical violations can be difficult to justify the removal of a person from an office. Levels of ethical decision-making: The Responsible Administrator is an in-depth attempt to bridge the philosophical points of ethics and the complex workings of public administration. While not revolutionary, his work has become a focal point around which ethical decision-making in the public sector are made. The Responsible Administrator, states that public administrators make decisions daily according to a distinctive fourlevel process. The four levels are:  The Expressive Level: At this stage, a person responds to a situation with "spontaneous, unreflective expressions of emotion which neither invite a reply nor attempt to persuade others". The Level of Moral Rules: This is the first level at which we begin to question actions and begin to look for alternatives and consequences. The responses at this level are often built upon "moral rules we acquire through the socialization process from our families, religious affiliations, education and personal experiences." Decisions on how to handle the situation are then whittled down based on what we feel is the most appropriate action within our own personal moral bank. The Level of Ethical Analysis: There are times when a personal moral code will seem inadequate for the situation, or that the alternatives and consequences do not feel right. When this occurs, a person has entered this level and begins to examine their ethical principles, or statements concerning the conduct or state of being that is required for the fulfilment of a value; it explicitly links a value with a general mode of action. Particularly, at this level, one begins to re-examine their personal values, and may eventually disagree with actions to such an extent that they will become whistleblowers. The Post ethical Level: At this level, questions centre on one's view of the world and human nature, how we know anything to be true, and the meaning of life. Here there is a philosophical examination as to why ethical standards are important and relevant to the individual.

These levels are progressive and as an individual begins to move from level to the next, he/she will begin to question increasingly more fundamental assumptions upon which the decision-making

process is built. It is important to understand the level of thinking upon which a decision is made to ensure that a decision has been tested for strength and a public sense of validity. Modern Politics and ethics: Public administrators act independently of legislators and most elected officials. This ensures that those on elections boards can operate independent of political influence. This is also true of law enforcement. Unfortunately, enforcing ethical violations can lead to consequences for the public administrator. While an officer can enforce a law against an elected official, the elected official can place pressure on others to force the officer to work a night shift or decrease the department s budget. The protection of positions from political pressure is known as safe harbour. However, because there can be large political obstacles, it can be difficult for an administrator to overcome ethical concerns within an organization. Sometimes, the culture of an organization is unethical, at which time; it would be useless to bring up ethical concerns within the organization. In the public sector and nonprofits, when this is the case, individuals will often attempt to bring outside scrutiny on to the organization. This is typically done by leaking the ethical concerns to the general media. Such an act is known as whistle blowing. Whistle blowing: After using all available means for working within the system, an employee of a governmental agency reports a problem to other governmental agencies or to the general public directly. The problem for whistle blowing on all levels of government (federal, state, and local) is that there are very few protections for these individuals. Modern Ethics and the personal life of administrators: There are several factors of a person s private life that are often viewed as something that is not made available to the public. When a person enters into a public life, often, aspects of their private life are made public.  Health: It is important, in the public s eye, that a public official be physically sound when conducting the duties of their office. Finances: A public official may be a strong steward of public funds, but may have personal financial issues (i.e. failure to pay taxes, etc.). Disclosure of finances is particularly important, ethically, for the public to decide an official s ability to properly manage public funds and to assess an individual s potential for giving into politically charged financial pressure. Opposing viewpoints to this argue that public officials should not have to disclose financial information because they are sometimes linked to personal contacts that prefer to remain anonymous. Sexual Misconduct: The common view is that a public official s sexual life is subject to scrutiny. This is due to the assumption that any sexual misconduct may lead to the manipulation of the official s daily decisions. It is thereby often the subject of attention when sexual misconduct becomes known to the public. Appearance of Impropriety: Officials should make public any possible conflicts of interest prior to their actions, in order to avoid public scrutiny when making decisions that could be construed in favour of a personal interest.