Ethical management and leadership refers to corporate ethics or business ethics that underscore social responsibility as well as responsibility owed to employee interests and well being.
It is about balancing profit-maximizing aims of the company or organization with other non-economic concerns.
The importance of ethical management and leadership
When ethical and moral principles are implemented by businesses in addition to the principal or central profit-making motive, they can have several positive impacts.
This can make valuable contributions to social well being by giving something back to the community.
Businesses can make it their business not only to provide goods and services, but also perform their social responsibilities. For instance companies can take the necessary steps to lower the environmental impacts of their business processes.
They can do this by lowering waste and energy consumption and placing more reliance on renewable energy and other sustainable practices.
Even the type of business that an entrepreneur chooses to initiate can make a difference and thus can become a part of ethical management and leadership. For instance companies who choose to invest in infrastructure can actually assist in the job of nation building – building roads, highways, dams, irrigation systems, etc.
Then there is the benefit to employees that ethical business practices can mean. It could be something as simple as providing ergonomic and healthy seating and office furniture to prevent employee injury. Or it could be policies that help improve employees by offering fitness facilities, wellness classes and so on or necessarily limit the number of hours that an employee works per week.
Aspects of ethical management and leadership
There are financial aspects, human resource management, production, intellectual property, cultural and other aspects that ethical management can cover.
Other than profit making, many businesses choose to have philanthropic interests that involve in charities and other social causes. In terms of human resource management, they can make the time and effort to make sure that the right person is in the right job and that their job satisfaction is as high as possible.
Following the law scrupulously, refraining from intellectual property and other infringements, making sure that the organization doesn’t take undue advantage of individuals or other corporations are other aspects that ethical management encompasses.
Ethical management and leadership also concerns itself with sensitizing management as well as employees to cultural and ethnic differences in the work place. It can help improve understanding and foster tolerance in the society at large.
By earning an organizational leadership degree you’ll learn how to practice business ethically and lead your company to success.