However, this does not mean they can do whatever it takes to get that maximum profitability.
The word ethics comes from the Greek root, ethros, meaning character, giving beliefs, standards, or deals that pervade a group, a community or an individual. Today ethics is the study of moral behaviour—the study of how the standards of moral conduct among the individuals are established and expressed behaviourally.
Terms such as business ethicscorporate ethics, medical ethics, or legal ethics are used to indicate the particular area of application. But to have meaning, the ethics involved in each area must still refer to the value-oriented decisions and behaviour of individuals.
Ethics refer to a set of moral principles, which should pay a very significant role in guiding the conduct of managers and employees in the operation of any enterprise.
Ethics is concerned with what is right and what is wrong is human behaviour. It is normative and prescriptive, not neutral. It addresses the question of what ought to be. Ethics refer both to the body of moral principles governing a particular society or group and to the personal normal precepts of an individual.
Some people subscribe to a utilitarian reference in determining what is wrong and what is right. They hold that a proposed course of action should be judged from the standpoint of greatest good for the greatest number of people. From this point of view, there are few absolute standards and each issue must be judged by studying its impact upon all affected parties.
Accordingly, an organization whose practices contribute to inflation, unemployment, increased poverty and like would be viewed as socially irresponsible—as not fulfilling its responsibility to society. An automobile manufacturer who produces cars with faulty brakes, a pharmaceutical house that makes false claims about its cold remedies, or a food company house TV ads promote substandard food items are socially irresponsible.
Some people feel that social responsibility is linked to organisation and ethics to individuals, but this is not a useful distinction.
In the final analyses, decisions are made by people and therefore, individual managers at some level must assume responsibility for every corporate decision.
Within this frame of reference, business ethics are concerned with microethics relating to daily operating decisions with limited social impactsocial responsibility is concerned with macroethics relating to decision with broad implications for a large segment of society.
However this distinction is not even followed in practice. PriceWaterhouseCoopers is considered to be one of the most renowned global professional services firm in the world. We have always believed that the best business solutions grown out of collaborative relationships with clients.
Today, the same principle applies with corporate responsibility, stakeholder engagement and sustainability.Managerial Ethics. The term ‘ethics’ refers to value-oriented decisions and behaviour. The word ethics comes from the Greek root, ethros, meaning character, giving beliefs, standards, or deals that pervade a group, a community or an individual.
It is “the discipline dealing with what is good and bad, or right and wrong, or with moral duty and obligation. It is a standard of behaviour that guides individual managers in their works”. Social Responsibility and Managerial Ethics (Managerial Function) Social Responsibility. Social responsibility denotes differentiating right from wrong and doing the right thing.
Details of the study: Managerial Ethics: Ethics is difficult to define in a precise way. In a general sense, ethics is the code of moral principles and values that governs the behaviours of a person or group with respect to what is right or wrong.
Management's only social responsibility is to maximize profits (create a financial return) by operating the business in the best interests of the stockholders (owners of .