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Effective Ethics Management System

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Sunil Kumar Maheshwari and M P Ganesh, the authors of Ethics in Organizations (The Case of Tata Steel) which is published in Vikalpa, Volume 31 Issue 2, April 1, 2006. Sunil Kumar Maheshwari is a professor in Human Resource Management Area at the Indian Institute of Management, Ahmedabad. His research, consulting and teaching interests are in strategic human resource management, international human resource management and business turnaround. M P Ganesh an Associate Professor in the Dept. of Liberal Arts at the Indian Institute of Technology, Hyderabad. His areas of research interests include Cross-Cultural Collaborations, Virtual Teams, Ethical Decision Making, Teacher Leadership and Corporate Social Responsibility.

The authors featured the critical issues of ethical decision-making in organization. The authors have built up a thorough structure of organizational ethical decision-making and behaviour of individuals in organizations. The system distinguishes three gatherings of factors: a) moral intensity, b) intrinsic factors, c) extrinsic factors. Further, it is utilized to examine the execution of implicit rules at Tata Steel.


The concern for ethical decision-making among the regulators, social groups, and managers has substantially increased in recent years following the failure of some of the prominent business organizations owing to strong social condemnation of some of their business practices. In order to ensure ethical business practices in an organization, it is important to have an ethical orientation among the people who own, manage and work for it. Though an ethical decision does not necessarily always lead to ethical behaviour, ethical behaviour is preceded by an ethical decision-making.

Moral intensity is a characteristic of the moral issue itself. Every ethical issue can be represented in terms of its moral intensity- a construct that includes the magnitude of consequences, social consensus, probability of effect, temporal immediacy, proximity and concentration of effect.  The above components of the moral issue are expected to have interactive effects. Moral intensity is expected to rise if there is an increase in any one of its components. The researchers have demonstrated that perceived moral intensity influence ethical perceptions and intentions.

The intrinsic factor derived from the framework of organizational ethical decision-making and behaviour consist of moral awareness, individual values, cognitive factor, individual differences, and demographic variables.  

Extrinsic factors are the major organizational factors distinguished in investigates which assume a noteworthy part in ethical decision-making and behaviour are organizational factors recognized in explores which assume a noteworthy part in ethical decision-making and behaviour are organizational ethical practices, organizational group processes, the level of accountability among the employees, and performance management system.

Familiarizing ethical code of conduct among the employees would also help to create sufficient awareness of the ethical issues and, thus, minimize ambiguities in decision-making situations.


As per the author, ethics is characterized as a trademark which establishes good and bad human conduct and that which chooses what is great and malicious, right and wrong, and in this way what we should and should not to do. Moral qualities are the arrangement of qualities which are as per the social standards and help in the presence of the bigger network. The qualities that are viewed as imperative for the presence of the gathering lead to a specific example of conduct among the gathering part and along these lines turn into the gauges for future conduct. Ethical problems are issues of decision attributable to the clashing idea of qualities. They happen when the individual qualities and the social standards struggle with each other. Regularly, because of clashing interests of various partners, supervisors in associations confront the quandary of distinguishing the honest choice as seen by these partners. Henceforth, it is critical to control supervisors-by articulating and imparting unambiguously-with respect to what is correct and what isn't. Extraordinary socialization will be required at various levels to soak up authoritative qualities and ethical practices. The socialization that prompts willing selection of practices is probably going to prompt better execution of ethical practices. To guarantee ethical business practices in an organization, it is vital to have an ethical introduction among the general population who claim, oversee, and work for it. This could be accomplished by receiving legitimate structures, approaches, and practices as they impact the ethical conduct through stream of correspondence and fortifications of moral decisions.

In this article, authors have built up an easier system to clarify the ethical decision-making and behaviour in organizations to control the chiefs and future analysts. In view of the writing, unique consideration is given to the association and the administration ramifications of various factors as far as applications in those moral fronts. Authors recommended that ethical decision-making and behaviour of individuals in the organization is impacted by different elements which can be arranged into three noteworthy headings to be specific:  A) Intrinsic variables, B) Extrinsic variables, and C) Moral issue-related variables (moral intensity). Ethical decisions and behaviour of managers are the ones that are both lawfully and ethically satisfactory to representatives and different partners. Despite the fact that an ethical decision does not really dependably prompt ethical behaviour, ethical behaviour is preceded by an ethical decision-making. The ethical decision-making is affected by moral thinking and goals also, stakes of decision-makers. It was found that goals are great indicators of conduct in high inclusion circumstances for example, moral predicament.



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