ETHICAL AND UNETHICAL ISSUES OF MANAGEMENT

ETHICAL AND UNETHICAL ISSUES IN DISCIPLINE OF MANAGEMENT

WHAT IS ETHICS?
 Ethics is based on well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues.

WHAT IS BUSINESS ETHICS?
Business ethics is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. 

ETHICS IN HUMAN RESOURCE MANAGEMENT

Human resource means the collection of people and their characteristics at work. HR management involves both strategic and comprehensive approaches to managing people as well as workplace culture and environment.

ETHICAL ISSUES

• Cash and Compensation Plans

There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive plans etc. The HR manager is often under pressure to raise the band of base salaries. There is increased pressure upon the HR function to pay out more incentives to the top management and the justification for the same is put as the need to retain the latter.

• Race, gender and Disability

In many organisations till recently the employees were differentiated on the basis of their race, gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatory framework that has standardised employee behaviours towards each other.

• Employment Issues

Human resource practitioners face bigger dilemmas in employee hiring. One dilemma stems from the pressure of hiring someone who has been recommended by a friend, someone from your family or a top executive.

• Privacy Issues

Any person working with any organisation is an individual and has a personal side to his existence which he demands should be respected and not intruded. The employee wants the organisation to protect his/her personal life. This personal life may encompass things like his religious, political and social beliefs etc.

UNETHICAL ISSUES

• Employee theft

It mean stealing, use or misuse of an employer's assets  without permission. assets like money, time, supplies, merchandise company property, information. it can be a very serious issue for the HR manager to look after these kind of things in the company.

• Lying employee

If the head of the company is not able to resolve the issues, the complaint will be taken forward by the human resource . some of the unacceptable behavior like shouting or personal insult will happen. It should be controlled so that it doesn't affect other employees.

• Lying employee

The employee may think that one little lie won't hurt their standing with organization, but even the smallest lie or untruth , when discovered, can diminish, the regard for the employee.

• Workplace conflicts

It can be often happen in an organization due to the unfavorable decision making or due to the sort of discrimination. The HR manager should take certain measure to avoid these in an ethical way.

:-MARKETING MANAGEMENT.

Ethics in marketing denotes to the practice of marketing in business in an ethical and moral way. It means intentionally applying standards of justice and represents the company to others.Marketing ethics has been developed with reference to business ethics that reflect interest of various stakeholders.

Ethical issues
certain ethical issues which usually seen in the field of marketing are:-

1. Group the market audience
2. Deceptive market research 
3. Delivery channel
4. Adequate market research
5. A proper unbiased and accurate information collection

UNETHICAL ISSUES

• Accuracy in advertising

Especially online marketing, they use photographs of high-quality product and sell the poor quality of goods.

• emotional exploitation

This problem arises every once in a while, they makes a quite exit when consumers complain about feeling manipulated.

• False brand comparison

comparing one product to another that is really not related, in order to make one thing look more or less desirable than it really is.

• Offering false claims

certain companies often show some offers and claims regarding their product. But when it comes into the matter they make excuses.

ETHICS IN FIANCE MANAGEMENT

The financial industry has given us countless scandals and news stories about financial professionals who have defrauded investors, employers, and peers. There is no doubt that greed is a powerful emotion, but sometimes unethical behavior boils down to a lack of education on basic principles of financial standards.

ETHICAL ISSUES

• Transparancy

Financial documents reflect a company's performance relative to its peers, and its internal strengths and weaknesses. Regulatory agencies require publicly traded companies to submit periodic financial statements and make full disclosures of material information.

• Accuracy

A company’s financial manager ensures that all financial publications accurately and fairly reflect the financial condition of the company. Accounting errors and financial fraud, such as what was seen in the cases of Enron and WorldCom, damage the interests of shareholders, employees and affect confidence in the financial system.

• Timeliness

Timely financial information is just as important as accurate and transparent information. Management, investors and other stakeholders require timely information to make the right decisions.

• Integrity

Financial managers should strive for unimpeachable integrity. Customers, shareholders and employees should be able to trust a financial manager's words. Managers should not allow prejudice, bias and conflicts of interest to influence their actions.

UNETHICAL ISSUES

1. Deliberate abnormal delays in payment to (a)vendor,(b)Dealers commission and promotion costs.
2. Delays in paying wages, interest to financiers, incentive, bonus to employees.
3. Holding up bills of vendors on silly reason and ultimately buying from other to avoid payment to earlier vendors.
4. Not prompt in statutory payment of ESI, PE, Sales Tax and Excise Duties.