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Ethics And Management Decision Making Essay

4688 words - 19 pages

“We have always known that heedless self-interest was bad morals; We know now that it is also bad economics”
(Franklin Delano Roosevelt as cited in Godwin, 2008; Good Money & Quotes, 2010)

1. Introduction

Business Industry has witnessed the outcomes of bad moral decisions taken by business leaders. Enron’s story is only one example of corporate scandals and cases of bad moral decisions, which has not only shaken the public trust in corporations, but also affected the bank accounts of investors and employees. Before the bankruptcy of Enron; it was included in one of the fortune 500 companies after its fraudulent accounting case the share went down to $1 (Enron scandal, 2010; PBS, 2002; Godwin, 2006; Godwin, 2008).
The “bad apples” which create fraudulent are now facing prison terms, they are not morally bad character people they just face this because of their limited conceptual schema and don’t consider moral values while making decisions. Mostly managers are known for moral values, and they are not greedy and egoists, the underlying issue is that they have narrow perspective on a particular situation so they don’t view the moral consequences of their decisions. They actually lack the ability to imagine a range of possible issues, consequences and solutions. So just because of their shorter insight they make wrong moral decisions which later give undesirable impacts to society and business as well (Godwin, 2006, Godwin, 2008; Werhane and Moriarty, 2009).
Business Industry has also witnessed some business leaders who have taken such a good moral decisions that result in mutual benefit to the company and wider society. Literature shows different instances of companies like Seventh Generation, Fuji Xerox, or Green Mountain Coffee Roasters. These companies are getting huge profit margin and are also accepting their social corporate obligation. This only happens because of their leaders who make such decisions which leads towards increasing the profit margin and creating social mutually benefit (Godwin, 2006; Godwin, 2008; CBS, 2002; PBS, 2002).
Some business leaders are taking good moral decisions and the reason behind that idea is that the core part of their business strategy is to create mutual benefit for both wider society and business as well. The growing desire of top management is to find out ways to create mutual benefit for both the organizations and the stake holders but the public still believes that companies are greedy entities which make decisions only in their self-interest, even at the cost of greater public welfare. It is the utmost obligation of the companies to discern the social issues while making the decisions (Yashiro, Yoshida and Suzuki, no date; Godwin, 2006; Schwab, 1996; Godwin, 2008; Werhane, 1998; Werhane, 2002; Heath, 2008; Mehalik and Gorman, 2006).
Morality is basically the individual’s perception of what is “good'' or “right.'' The human behaviors are determined by the environment. What so ever human is...

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