Are Management Practices Ethical?


Organizations are one of the major innovations by human beings and have led to improvement of the human life. For every organization to attain its full potential, it is necessary for it to incorporate the concept of management. Management is defined as the process through which the activities of an organization are coordinated. This means that there must be set policies in order to ensure the attainment of the laid down specific objective. In the process of management, issues related to ethics also need to be considered. Ethics refers to the generally socially accepted code of behavior by either an individual or an organization. The purpose of this paper is to critically demonstrate that management is indeed ethical.

Main Body

It is generally agreed that organization should adopt good management practices in order for organizations to excel. The main management practices in an organization include planning, organizing, controlling and coordination. All these practices have to be in line with the ethical standards.

Every organization has to undertake the planning function in its management. Planning is defined as the process through which an organization sets it goals, develops its strategies, and formulates tasks that are to be undertaken to achieve a desired objective. In setting goals management ensures that these goals are ethical and legal. In the course of organizations life, there will be changes that occur from the environment. Some of these changes are uncontrollable. In order for the organization to cope with these changes successively, planning has to be considered. The management function of planning ensures that these changes are dealt with in a manner that is comprehensive and does not hurt its competitors. This will win the confidence of the organizations clients leading to the firm gaining competitive advantage ethically (Jayashree 18).

Through management, an organization ensures that it increase its level of productivity in an ethical manner. This means that the management has to set the right targets that will ensure it attains its goals. Setting of targets for the firm means that the firm will have to involve itself with effective planning.

Management also enables the firm to undertake the right measures to achieve its desired goal. For instance the firm has to counter fierce competition within its industry of operation. Through adoption of good planning, the firm eliminates chances of it being involved in unfair competition which is unethical. Through this, the firm will be able to gain competitive advantage against its competitors in an ethical manner (Jayashree p.19).

Through management, it becomes possible for the firm to involve its self with corporate social responsibility. Corporate social responsibility refers to the process by which a firm engages itself with concern of the problems that are affecting the society. This is due to the fact that the business in some way contributes to these problems in the course of operation.For instance; some businesses contribute to environmental pollution. Through management, it becomes possible for the organization to incorporate business ethics. This averts chances of occurrence of conflict between the business and the society. If businesses were left to run on their own without a well defined management, then it means that there would be increased social problems. This is due to the fact that there would be no well set guidelines for the business to act ethically by involving it’s self with corporate social responsibility. Organizations could argue that they are not formed to solve social problems.

According to Dean, management is also involved with decision making.In this process, the management has to ensure it incorporates value. This means that the management ensures that the business operations are not only inclined to the profit maximization objective of the firm. Management ensures that other parties are considered in the decision making process since they are existing within the same society. This shows that management is ethical since it ensures the consideration of justice and fairness to others within the society (120).

Management is also ethical in that it considers the welfare of its employees in the process of making decision related to the firms’ performance. Good management practice enables the business to formulate employee’s welfare programs. Through these programs, the employees are catered for minimizing chances of exploitation in the process of conducting business activities. The management ensures that these programs incorporate various aspects related to the employee. The management ensures that preference is given to issues related to financial remunerations, legal, health and other advisory services. The management’s involvement in the formulation of the welfare programs ensure that the firms’ level of productivity is improved (Dean 123).

Through effective management, firm is able to minimize its regulation by various agencies. This is due to the fact that the management ensures that the organization acts ethically. For example, the management has ensures that the firm complies with the laid down rules and regulation either by the government or other regulatory agencies. This means that the management is ethical in that there are very few cases where organizations are forced to act ethically due to management failure. This is due to the fact that there are instances where pressure is put on the legislators to enforce regulations of firms where management has failed to act ethically.

According to Jayashree, the management is also involved with the function of organizing (p.20).The management has to ensure that the organizing function is conducted effectively. For instance; the management has to ensure that the firms’ resources are allocated optimally. The management acts in trust capacity of the investors resources.If the organizing function of management is absent in a firm, there can be misappropriation of the firms resources. This is unethical since the investors’ resources would be lost.Through the organizing function, the management is able to act ethically by safeguarding the resources of the firm (p.20).

In the process of conducting organizing function, the management incorporates ethics in that it has to ensure that equity is maintained in the allocation of resources amongst various departments. This increases the efficiency of the firms’ performance. It also reduces chances of occurrence of resistance by some departments on the basis of inequitable resource allocation. If the management acts unethically by allocating resources in a biased way, this would be unethical and would lead to organizational conflict. By the management conducting its organizing function in an ethical manner, chances of occurrence of conflicts are eliminated (Jayashree, p.21).

In conducting its management practice of organizing, the management is ethical in that it helps the employee adapt to changes that occur within their environment of operation. Organizational changes are common in organization. The change may result from either internal or external environment.Change can distract the employees performance and motivation if it is not handled professionally. The management ensures that the employees are prepared to cope with the change in an effective manner. Through good management, the employees are given an option of formulating strategies that they perceive can help deal with the change.It is the role of the management to implement the laid down strategies. This depicts that management is ethical since it consider the effect of the change on its human capital.

An organization management is ethical in its staffing function. The management ensures that the staffing function is conducted in an amicable manner in order to only hire the qualified personnel. This is through the formulation of a comprehensive recruitment policies and procedures through the human resource department. The policies and procedures set by the management ensure that the chances of corruption are reduced in the process of the firm undertaking its recruitment drive. This ensures that the firm delivers its services to its clients in a professional manner. Some business organizations are very sensitive such as those in the medical field. The management of these firms is ethical in that they have to ensure they recruit staff that is qualified in that field.

The management is also ethical in that it formulates a well developed structure relating to employees responsibilities. This means that the employees will not be bombarded with tasks that are not a part of the employment contract. This is through the employees’ job description leading to improvement of job performance. This means that management is ethical in the process of human resource placement (Dean 100).

Management is also involved with the process of directing. This involves the process by which management motivates the employees in order to achieve the set goals. The directing function makes management to be ethical in a number of ways. Through directing, the management can be able to monitor the actions of the staff. This means that the activities of the employees can be monitored towards ensuring that the organization achieves its objective. The directing function also ensures that the employees can be able to develop their career. This means that through management, employees do not stagnate in one particular task. Management is ethical in that it helps in the recognition of the self career needs such as those leading to self actualization.

According to Jayashree, management ensures that the directing function is effectively conducted. This is through ensuring that the employees are highly motivated by a enhancing a conducive working environment. To enhance this environment, management ensures that there is formulation of good problem solving strategies. In organizations, there is possibility of occurrence of conflicts. This is due to the fact that there are different individuals with differing personalities. Conflicts can result into deviation from the set course (p.21).

In order for these strategies to be effective, management ensures that there is a well established communication mechanism. Through management, incorporation of open communication becomes possible. Implementation of the directing function of management with relevance to open communication reduces chances of dictatorial leadership. In most instances dictatorial leadership tends to be unethical. This means that the employees can be able to communicate their complaints to the top executives (Jayashree, p.22-23).

Management ensures that there is incorporation of ethics in its control function. Control refers to the process through which organizations establish evaluation and performance standards in order to implement required changes. Management ensures that these standards are in line with the organizations objectives. Management enables the formulation of control strategies such as those related to actual employees’ job performance. It is through these strategies that the employees are able to be effectively appraised and rewarded. In the absence of the control function of management, there would be a possibility that the appraisal and promotion for the employees would be conducted through favourism. This means that management ensures that employees are rewarded basing on their level of performance thus eliminating biasness.


In conclusion, it is evident that good general management practices are ethical. This contributes to the firm attaining competitive advantage.This is due to the fact that through these practices, there is satisfaction of needs of various agents. These include the government, suppliers, employees and other clients while at the same time the organization is able to attain its objectives. The planning function ensures that the organizations stipulate operational strategies that are acceptable. This prevents the organization from involving itself with unethical practices. Directing ensure that employees are motivated while at the same time their individual needs are not ignored in the course of duty. Through management, it is possible for the organization to involve itself with corporate social responsibility. This means that management leads to the incorporation of the concept that organizations should not solely exist for profit maximization motive. They should rather act ethically by involving themselves in being a part of solution to social problems.

It is also evident that effective management is ethical in that leads to formulation of an effective working environment. This means that there are well laid open communication procedures and problem solving strategies.

Management ensures that in the process of recruitment, unethical conducts are not involved. This is through ethically formulated recruitment policies and procedures.


Carter, M., Management functions of controlling.London: Adams Media Corporation, 2008.Web.

Dean, B., Management and business ethics: critique and integration of ethical Decision making model. London: Metropolitan University, 2003.

Jayashree, P., Management concepts: the four functions of management.Essex UK: Pearson Education publishers, 2007.Web.

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