Chapter 6 Management Ethics

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Chapter 6Management Ethics
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Objectives

• Understand the relationships among the legal,
  ethical and moral laws.
• Comprehend the professional responsibilities of
  managers.
• Be able to demonstrate the benefits of ethical
  management for managers, as well as
  organizations.
• Apply ethical tests to management actions.

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Can ethics be taught to managers?

• An increasing demand for training in the field of
  management ethics for supervisors and managers.
• Prevalent in training and education segments of
  the hospitality and tourism industry.
• Industry leaders and educators believe there is a
  need to include some form of ethical training in
  programs of higher learning for managers.

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Purpose of Ethics Training Programs

• Create awareness of ethical issues that surround
  managerial decision making
• Provide a paradigm for proactive management
  practices
• Convince managers of the need to promote
  management as a profession

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Experienced HR practitioners include these
criteria in their management selection activities

• Complete rigorous advanced technical and
  supervisory training programs.
• Subscribe to high levels of personal and
  professional conduct, and should contribute to
  society through the practice of management.
• Subscribe to codes of ethics established by their
  colleagues.
• Entry to the field of management should be
  restricted to those individuals who possess the
  ability and appropriate character to work in a
  professional capacity.

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Whats in it for the manager?

• These qualities make a respected manager
• Proactive manager is a balanced individual who is
  passionate about the challenges and meaning of
  his/ her work.
• Proactive management must make good business
  sense.
• Unethical activities may have adverse impacts on
  these managers on both personal and professional
  levels.

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Moral and Social Audits

• Both are part of the annual strategic planning
  process for the organization in the hospitality
  and tourism industry

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Are proactive managers ethical managers? -Moral
evaluation of proactive managers
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Moral Audits

• Focuses on activities within the organization
• Evaluate the actions of workers, managers, and
  shareholders and compare those actions with the
  codes of ethics for the corporation
• Designed by a cross section of managers from
  every level of the corporation
• Form ethic committee to audit the code of ethics
  for relevancy on an annual basis

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Social Audits

• Focuses attention outside of the organization
• Provides information concerning the outcomes of
  decisions on the environment outside the
  organization
• Focus on the customer and community
  stakeholder groups

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Five Professional Responsibilities of Hospitality
Managers

• Carefully select the hospitality organization
  they represent
• Acquire and maintain levels of training and
  education to ensure competency
• Concerns a thorough technical comprehension of
  hospitality/tourism interfaces
• Require the skills to establish and maintain
  standards designed to ensure the welfare of all
  stakeholder groups associated with a hospitality
  organization
• Concern personal and professional conduct to
  exemplify integrity as an industry leader and a
  member of the social community

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Professional Responsibilities of Hospitality
Managers - Hospitality and Tourism Management
Responsibilities Self-Questionnaire
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Cultural Diversity

• Culture
• A simple definition Shared values, attitudes,
  and beliefs
• The values for one culture may be incongruent
  with those for another culture.
• When individuals disagree with or misunderstand
  the values of other cultures, conflict occurs.

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Cultural Diversity

• American culture consists of influences from many
  races, ethnic backgrounds, communities and global
  regions.
• Individuals must learn to disregards cultural
  differences and embrace cultural similarities
• The essence of cultural diversity training
  programs

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Cultural Diversity- Organizational Culture

• The collection of shared values, attitudes and
  beliefs for members of that organization.
• They assimilate into the organization as an
  employee and begin to understand the unwritten
  core philosophies and rules for behavior in that
  organization (norms or acceptable behavior)
• Norms include traditions, rites, rituals,
  ceremonies, and celebrations within the
  organization.
• Behaviors including dress codes, formality
  levels,
  inside humor, buzzwords, company acronyms, and
  others are symptoms of the organizational
  culture.

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Cultural Diversity- Organizational Climate

• A collective worker emotional response to the
  practices of that organization.
• The relationship of workers to the organization.
  
• The climate within an organization- mood,
  perceptions, opinions, morale levels, loyalty
  levels, enthusiasm, and other attributes relative
  to the relationship of workers to the
  organization.

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Cultural Relativism vs. Universality

• Two opposite concepts
• Relativism is relative to individual environments
  
• When in Rome, do as the Romans
• Universality is the same in every level and area

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Cultural Relativism vs. Universality

• Legal laws are Jurisdictional- therefore they are
  relative
• Codes of Ethics are universal-
• The same codes of correct behavior should prevail
  regardless of the immediate environment
• Morals
• Personal convictions of correct thinking and
  behavior within an individual that are at the
  highest level of ethical thinking
• The same despite the environment

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Motivation to Commit Immoral and Unethical Acts

• Self- egoism
• Personal greed
• Narcissists
• Those individuals who care only for their own
  welfare despite the harm their actions cause to
  others.
• Motivated primarily by personal gain with little
  regard to the ramifications experienced by
  others.
• Ethical Relativism
• Situational ethics or ethic of convenience
• Justify their actions in some manner
• Everyone does it
• Involves actions that are contrary to universality

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Ethical Tests

• Testing the correctness of an action from an
  ethical perspective
• Consequential testing
• Formalist testing

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Ethical Tests1. Consequential testing

• Based on the consequences or results of an action
  
• Utilitarianism (The most common type of
  consequential testing)
• Focuses on the utility of the consequences of
  an action by measuring the harm or good inflicted
  on others as a result of the action
• Maximize good and minimize harm through ones
  actions

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Ethical Tests2. Formalist approach

• Focus solely on the form or intent of the
  action
• no regard for the consequences of the action
• Emanuel Kant process that categorical
  imperative
• An action must pass all three categories to be
  considered morally correct
• Test 1 -- Universality
• Test 2 -- Beings as ends
• Test 3 -- Autonomy
• If it is considered to be morally correct then
  the person has a duty to do the action
  (imperative)

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Ethical Tests- 2. Formalist approach Categorical
Imperative
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Ethics and HRM

• HR managers are responsible for training managers
  in ethical thinking, Includes
• Proactive management
• Strategic thinking
• Codes of ethics
• Social and moral audits
• Ethical testing
• HR practitioner must be an eclectic manager.
• As an internal adjudicator within the company
• Function as a managers manager
• well versed in matters of legal, ethical and
  moral law for the purpose of testing the actions
  of managers to ensure the prevention of harm on
  any member of the stakeholder groups