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In this new day and age, social responsibility and managerial ethics have a lot of contribution in order to achieve success in organization. Ethics and social responsibility are related in order to bring organization becomes profitable and existence. So, managers should be aware of ethics and social responsibility. This essay will discuss about the reason why managers should understand about ethics in organization. In addition, it explains two opposing views of social responsibility, how it influences the organization in gaining profit, and what policies should be given in order to improve ethics in organization. In general, ethics is defined as regulation about the true and false behavior. It also can be defined as beliefs and values. There are four kinds of ethics views. They are utilitarian view of ethics, rights view of ethics, theory justice view of ethics, and integrative social contracts theory. The first view is utilitarian. This view is believed that majority is more important than minority. In addition, the decision of this view is based on their outcomes or consequences. The second view is rights, which is emphasized the protection of individual rights, such as freedom of speech, rights to privacy, life and safety, free speech and choice. The third is theory of justice. It talks about equity in organization, such as the same amount of wages for employees, the same holidays, and the same sick leaves. The last view is integrative social contracts theory, which is believed that the decision that has to be made is depend on empirical or evidence and normative factors (Robbins, Bergman, Stagg, and Coulter, 2003, p.151). Managers should be aware of ethics because a lot of decisions are made based on them in terms of result and also the process. According to Robbins et al, most managers prefer to choose utilitarian views because it is constant with some business goals, such as efficiency, productivity, and high profits (2003, p.151). There are some internal and external factors that influence ethical behavior in organization, which are situational factors. The first is competition environment with other company, which is factor from outside company. The second is pressure for high performance and the third is dissatisfaction of labour, which are factors from inside the company. Firstly, Environmental competitiveness will lead to unethical behavior. For instance, there are a lot of industries that produce and sell the similar product. They will have strong competition, especially in pricing the goods to attract more consumers. If there is one company has a problem with financial and they are worse than other company in attracting the consumer, they will tend to behave unethically and illegally (Bartol, Martin, Tein, and Matthews, 2001, p.112). Secondly, pressure for high performance, which comes from inside company. For example, if the employees have a lot of pressures in time in producing the product, they will fell stressful. They can not produce the best product because they have a limitation in time. So, they will create the product badly. In addition, there is some possibility that the company will release unsafe product due to the pressure. It will harm and endanger the customer and the society, which will lead the company to gain loss both in gaining profit and customers. Thirdly, labour dissatisfaction, which also comes from inside the company. For instance, if the manager gives the employee a low wage, they will feel unsatisfied with manager, although manager gives the lower wages because of lack in financial. The workers do not care about the finance in company. They will angry to the company and demonstrate that problem to the company. It will disturb the company in producing goods.
Approximate Word count = 2385
Approximate Pages = 9.5
(250 words per page double spaced)
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