The Role of Ethics in Management and Sustainability Efforts
Business ethics is the study of appropriate business policies and practices concerning controversial issues (Arnold & Bustamente, 2012). Ethics are important in management and managers because they help to shape an organization’s values and promote ethical behavior (Brown & Treviño, 2006).
Role of Ethics in Management and Managers
The role of ethics in management and managers is critical to organizational success. According to Arnold and Bustamente (2012), business ethics is the study of appropriate business policies and practices regarding controversial issues. Brown and Treviño (2006) argued that ethical leadership is essential in promoting ethical behavior in organizations. Management plays a crucial role in promoting ethical behavior and shaping the values of an organization (Ferrell, Fraedrich, & Ferrell, 2017).
Impact of Management on Organizational Values
Management has a significant impact on organizational values. Starbucks Corporation (2021) is an example of an organization that has successfully integrated ethical values into its management practices. Starbucks’ management team emphasizes sustainability, ethical sourcing, and community involvement, which has helped to create a strong ethical culture within the organization. In contrast, Theranos Inc. (2018) is an example of an organization whose management failed to promote ethical behavior. Elizabeth Holmes, the CEO of Theranos, was charged with massive fraud by the SEC, which damaged the company’s reputation and led to its eventual collapse.
Importance of Sustainability in Business
Sustainability is important in business because it promotes responsible practices that benefit society and the environment. Organizations have a responsibility to consider sustainability in their operations and to minimize their impact on the environment (Ferrell, Fraedrich, & Ferrell, 2017). Starbucks Corporation (2021) is an example of an organization that has made sustainability a priority. Starbucks has committed to sourcing coffee beans from ethical and sustainable sources and reducing its carbon footprint.
Responsibility for Sustainability
The responsibility for considering sustainability falls on the organization as a whole. Management has a critical role to play in promoting sustainable practices and integrating sustainability into the organization’s culture and operations (Ferrell, Fraedrich, & Ferrell, 2017).
Employee Behavior and Ethical Climate
Employee behavior is a by-product of the organization’s ethical climate. The behavior of employees is influenced by the ethical culture of the organization and the actions of management (Brown & Treviño, 2006). Organizations that prioritize ethics and sustainability are more likely to have employees who behave ethically.
Manager’s Role in Organizational Integrity
The manager’s role in creating and maintaining organizational integrity is essential. Managers must promote ethical behavior, communicate the organization’s values, and lead by example (Ferrell, Fraedrich, & Ferrell, 2017). Managers who demonstrate ethical behavior can have a significant impact on their organizations, as seen in the case of Starbucks Corporation (2021).
Conclusion
In conclusion, ethics and sustainability are crucial to the success of organizations. Management plays a critical role in promoting ethical behavior, shaping organizational values, and integrating sustainability into the organization’s culture and operations. Organizations have a responsibility to consider sustainability, and managers must promote ethical behavior and lead by example to maintain.
References
Arnold, D. G., & Bustamente, R. M. (2012). Business Ethics. In Principles of Management (pp. 201–224). Retrieved from https://2012books.lardbucket.org/books/business-ethics/index.html
Brown, M. E., & Treviño, L. K. (2006). Ethical leadership: A review and future directions. The Leadership Quarterly, 17(6), 595–616.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2017). Business Ethics: Ethical Decision Making & Cases. Boston, MA: Cengage Learning.
Starbucks Corporation. (2021). Sustainability. Retrieved from https://www.starbucks.com/responsibility/sourcing/sustainability
Note:
This article is written based on University of The People Business Law, Ethics, and Social Responsibility (BUS 5115) written assignment by Fristy Tania in April 2023
