Define management ethics. Why management ethics is important in current situation?

 Managerial ethics is the standard of behavior that guides individual manager in their works. Ethical standards of manager are influenced by the action of peer, and top manager, organizational culture and the other environmental factors of that organization.

John R.: "Managerial ethics are principles that guide the actions and decisions of manager, and determine if they are 'good or bad' or 'right or wrong' in a normal sense."

Thomas Donaldson: "Managerial ethics are the standard of behavior that guide individual managers in their work."

Jones, Geroge and Hill: "Ethics are moral principles or beliefs about what is right or wrong. These beliefs guide individuals in their other individuals and group".

Ricky W. Griffin: "Ethics is an individual beliefs about whether a behavior, action or decision is right or wrong. Managerial ethics are the standard of behavior that guides individual managers in their work."

Managers are the decision makers for the survival and growth of organization. Organization cannot be alive itself without managers. Their beliefs, attitudes and entire behaviors are responsible for the long run success of the organization.

The concept of management ethics includes the following elements: 

• Ethics is reflected in an individuals' behavior.
• Ethical behavior differs from person to person, organization to organization and society to society.
• Ethical behavior confirms to generally acceptable social norms.
• Unethical behavior does not confirm to generally accepted behavior.
• Managerial ethics is influenced by family background, experience, peer influence, level of education, etc.

 Management ethics is important in current situationbecause/Significance of Management Ethics
There are three basic area of concern for managerial ethics. There are different facets of the relationships of firm to the employees, employees to the firm and the firm to other economic agents. Managers need to approach each set of relationship from an ethical and moral perspective. Ethical standers affect managerial actions and practices.
The following three domains of managerial ethics express the significance of management ethics.

1. How the organization treats its employees: Ethical standards greatly affect hiring and firing, wages and other economic benefits and working conditions to the employees in the organization. These factors also promote employees privacy. Organization can use training, guidelines, code of ethics, and leadership to promote ethical behavior of employees.

2. How employees treat the organization: Ethical standards of employees are greatly affected by their treats to the organization in terms of conflicts of interest, organizational secrecy and honesty.

3. How the organization treats economic agents: Ethical standards encourage managers to maintain business ethics with stakeholders. It also maintains fair relationship with competitors. It helps manage business ethics in customer relations. Ethical behavior promotes sense of social responsibility in management.