Management Ethics

Management Ethics

Objectives 1. Understand the relationships among the legal, ethical and moral laws. 2. Comprehend the professional responsibilities of managers. 3. Be able to demonstrate the benefits of ethical management for managers, as well as organizations. 4. Apply ethical tests to management actions.

Can ethics be taught to managers? An increasing demand for training in the field of management ethics for supervisors and managers. – Prevalent in training and education segments of the hospitality and tourism industry. • Industry leaders and educators believe there is a need to include some form of ethical training in programs of higher learning for managers.

Purpose of Ethics Training Programs 1. Create awareness of ethical issues that surround managerial decision making 3. Provide a paradigm for proactive management practices 5. Convince managers of the need to promote management as a profession

Experienced HR practitioners include these criteria in their management selection activities 1. Complete rigorous advanced technical and supervisory training programs. 2. Subscribe to high levels of personal and professional conduct, and should contribute to society through the practice of management. 3. Subscribe to codes of ethics established by their colleagues. Entry to the field of management should be restricted to those individuals who possess the ability and appropriate character to work in a professional capacity.

What’s in it for the manager? These qualities make a respected manager: • Proactive manager is a balanced individual who is passionate about the challenges and meaning of his/ her work. – Proactive management must make good business sense. – Unethical activities may have adverse impacts on these managers on both personal and professional levels.

Moral and Social Audits Both are part of the annual strategic planning process for the organization in the hospitality and tourism industry

Are proactive managers ethical managers? -Moral evaluation of proactive managers Proactive Managers: 1.

Take charge of personal and professional destiny—they are not victims.

2.

Are mission driven to align their personal goals with organizational goals.

3.

Seek long-term outcomes, not short-term profits or other forms of gratification. Are empathetic listeners who care about the needs of others, especially their staff. Seek win/win/win for others, themselves and the organization.

4.

5.

6.

Are synergistic by being team stewards.

7.

Are spiritually, mentally, physically, emotionally, and socially balanced— hence they are holistic beings in search of self-actualization.

Moral Audits Focuses on activities within the organization • Evaluate the actions of workers, managers, and shareholders and compare those actions with the codes of ethics for the corporation • Designed by a cross section of managers from every level of the corporation • Form ethic committee to audit the code of ethics for relevancy on an annual basis

Social Audits Focuses attention outside of the organization • Provides information concerning the outcomes of decisions on the environment outside the organization • Focus on the customer and community stakeholder groups

Five Professional Responsibilities of Hospitality Managers 1. Carefully select the hospitality organization they represent 3. Acquire and maintain levels of training and education to ensure competency 5. Concerns a thorough technical comprehension of hospitality/tourism interfaces 6. Require the skills to establish and maintain standards designed to ensure the welfare of all stakeholder groups associated with a hospitality organization 8. Concern personal and professional conduct to exemplify integrity as an industry leader and a member of the social community

Professional Responsibilities of Hospitality Managers - Hospitality and Tourism Management Responsibilities Self-Questionnaire

3. Will this organization permit me to manage in a proactive manner? 4. Do I have the inventory of skills and advanced training required to manage effectively? 5. Do I have current knowledge of my industry segment and its interfaces with other segments? 6. Do I subscribe to standards that ensure the welfare of all stakeholder groups? 7. Do I subscribe to standards of professional and personal conduct that are above the law?

Cultural Diversity Culture… • A simple definition: Shared values, attitudes, and beliefs – The values for one culture may be incongruent with those for another culture. – When individuals disagree with or misunderstand the values of other cultures, conflict occurs.

Cultural Diversity • American culture consists of influences from many races, ethnic backgrounds, communities and global regions. • Individuals must learn to disregards cultural differences and embrace cultural similarities

The essence of cultural diversity training programs

Cultural Diversity - Organizational Culture • The collection of shared values, attitudes and beliefs for members of that organization. – They assimilate into the organization as an employee and begin to understand the unwritten core philosophies and rules for behavior in that organization (norms or acceptable behavior) • Norms include traditions, rites, rituals, ceremonies, and celebrations within the organization. • Behaviors including dress codes, formality levels, inside humor, buzzwords, company acronyms, and others are symptoms of the organizational culture.

Cultural Diversity - Organizational Climate A collective worker emotional response to the practices of that organization. – The relationship of workers to the organization.

• The climate within an organization- mood, perceptions, opinions, morale levels, loyalty levels, enthusiasm, and other attributes relative to the relationship of workers to the organization.

Cultural Relativism vs. Universality Two opposite concepts • Relativism is relative to individual environments

– When in Rome, do as the Romans • Universality is the same in every level and area

Cultural Relativism vs. Universality • Legal laws are Jurisdictional- therefore they are relative • Codes of Ethics are universal• The same codes of correct behavior should prevail regardless of the immediate environment • Morals • Personal convictions of correct thinking and behavior within an individual that are at the highest level of ethical thinking • The same despite the environment

Motivation to Commit Immoral and Unethical Acts 1.

Self- egoism • –

Personal greed Narcissists •

–

2.

Those individuals who care only for their own welfare despite the harm their actions cause to others.

Motivated primarily by personal gain with little regard to the ramifications experienced by others.

Ethical Relativism –

“Situational ethics” or ethic of convenience • Justify their actions in some manner – “Everyone does it” • Involves actions that are contrary to universality

Ethical Tests Testing the correctness of an action from an ethical perspective 3. Consequential testing 4. Formalist testing

Ethical Tests 1. Consequential testing Based on the consequences or results of an action • Utilitarianism (The most common type of consequential testing) – Focuses on the “utility” of the consequences of an action by measuring the harm or good inflicted on others as a result of the action – Maximize good and minimize harm through one’s actions

Ethical Tests 2. Formalist approach Focus solely on the “form” or intent of the action – no regard for the consequences of the action – Emanuel Kant – process that categorical imperative • An action must pass all three categories to be considered morally correct Test 1 -- Universality Test 2 -- Beings as ends Test 3 -- Autonomy • If it is considered to be morally correct then the person has a duty to do the action (imperative)

Ethical Tests- 2. Formalist approach Categorical Imperative Test 1--Universality

The action must be universal. If everyone were to do this action, the action would continue infinitely and would not self-destruct.

Test 2--Beings as Ends

The action must respect all rationale beings as ends unto themselves. The action may not treat beings as mere means to an ulterior end.

Test 3--Autonomy

The action must be acceptable to all rationale beings, regardless of their involvement with the action.

Ethics and HRM HR managers are responsible for training managers in ethical thinking, Includes… – Proactive management – Strategic thinking – Codes of ethics – Social and moral audits – Ethical testing HR practitioner must be an eclectic manager. – As an internal adjudicator within the company – Function as a “managers’ manager” – well versed in matters of legal, ethical and moral law for the purpose of testing the actions of managers to ensure the prevention of harm on any member of the stakeholder groups