ETHICAL AND UNETHICAL ISSUES IN MANAGEMENT
Here , I will be telling you about the different kinds of ethical and unethical issues faced by the organization in various fields of management .
Before that , I would like to tell you about what actually ethics is.
ETHICS is the study of what is right and wrong in human behavior. It's the beliefs about what is morally correct or acceptable.
Similarly, BUSINESS ETHICS is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment.
These norms , values , ethical and unethical practices are the principles that guides a business.
They help businesses maintain a better connection with their stakeholders.
MARKETING
Marketing is the study and management of exchange relationships. Marketing is the business process of creating relationships with satisfying customers .
Ethics in marketing is an area which deals with the moral principles behind the Operation and regulations of marketing.
ETHICAL ISSUES IN MARKETING
1. PRODUCT ISSUE:
Product issues relate to the harmfulness
and failing to Disclose information about
the product . Whenever a product is
launched in a company, there should be
no misleading because it can help the
Company earn profit for a short time
period but later nobody would
recommend to buy such a product that
was false described.
2. PRICING ISSUES:
Pricing issues arise when competitors
make similar products and the
manufacturer force retailers to charge
high prices .
If a product is of good quality and
reasonable price, that is what the
Consumer prefer .
So, charging high price creates ethical
challenges towards marketing
department.
3. MARKET RESEARCH:
Some ethical problems in market research are the invasion of privacy and stereotyping. The latter occurs because any analysis of real populations needs to make approximations and place individuals into groups.
UNETHICAL ISSUES IN MARKETING
1. Spamming
2. Distortion of facts to mislead or confused potential buyers.
3. Using females as an attractive and sex symbols for advertisement.
4. Making false, unverified claims.
5. charging unreasonable prices.
FINANCE
ETHICAL ISSUES IN FINANCE:
1. ACCURACY:
A company's financial manager ensures that all financial publications accurately and fairly reflects the financial conditions of the company. Accounting errors and financial frauds, damage the interest of shareholders , employees and affect confidence in the financial system. Some organisations document ethics guidelines specifically for financial managers.
Financial documents reflects a company's performance relative to its peers, and its internal strength and weaknesses. Regulatory agencies require publicly traded companies to submit periodic financial statements and make full disclosures of material information. Transparency also means explaining financial information clearly , especially for those who aren't familiar with the company's operations.
3. TIMELINESS:
Timely financial information is just as important as accurate and transparent information. Management, investors and shareholders require timely information to make the right decisions.
UNETHICAL ISSUES IN FINANCE:
1. Deliberate abnormal delays in payments vendor, dealers commissions and promotion costs.
2. Delaying in paying wages , interest to financiers , incentive, bonus to employees.
3. Not promoting in statutory payments of PF, sales tax and excise duties.
4. Cheating employees of their dues towards medical expenses, leave travel assistance , children education fees etc.
5. Taking private finance only from those who are ready to do personal favors to the finance department head.
HUMAN RESOURCE
The branch of philosophy that deals with morality. It is all about the human being how he deal with his/her personal and professional life . It is all about being loyal , honest and discipline towards your work.
HR plays a very vital role in making decisions towards the organisations.
ETHICAL ISSUES FACED IN HUMAN RESOURCE:
1. EMPLOYEES ISSUE:
HR professionals are likely to face maximum ethical dilemmas in the area of hiring of employees .Pressure to hire a friend or relative of a highly placed executive.
2. CASH AND INCENTIVE PLANS:
It includes issues like basic salaries, annual increments or incentives , executives perquisites and long term incentive plans .3. EMPLOYEES DISCRIMINATION:
A framework of rules and regulations has been evolved to avoid the practices of treatment of employees of the basis of their caste, sex, religion , disability , age etc. No organisation can openly practice any discriminatory policies with regard to selection , training , appraisal etc.
UNETHICAL ISSUES IN HUMAN RESOURCE:
1. ABUSIVE BEHAVIOR:
Sometimes due to heavy workload employees could get irritated and could behave differently or rudely. As a HR manager it is their duty to control such kind of behavioral patterns so that it doesn't affect other employees.2. VIOLATING COMPANY'S POLICIES:
Researchers has found that huge amount of money is wasted in unnecessary internet surfing . Due to this there is wastage of company's time and money. HR managers should have an eye on their employees and seeing that how employees are spending the resources of the company.3. EMPLOYEE THEFT:
By a research done by Dr. William Adams , it was founded that one out of 80 employees was caught stealing from their employer . This can be a very serious issue for the HR managers to look after these kind of deeds in the company.So, this was my views regarding how ethics plays a vital role in various fields of management . Although ethics are important not only in business environment for long term process, but it's quite important in personal life also. One should must know the difference between what's morally acceptable.
