How Important Managers Are For Creating Better Ethical Culture

2076 Words Mar 8th, 2015 9 Pages
In this essay we will be examining how important managers are to creating better ethical culture, this essay we will refer to both formal and informal means to assess organisations ethical behaviour internal as well as to the external stakeholder. To examine real life example we examine Abercrombie and Fitch to assess how they manage ethics in their company. Management ethics is DEFINED BY REFERENCE. Management ethics importance has only recently increased since 2005(Crane and Matten 2010). It is noted that 2006 the day when Wal Mart advised for a director of global ethics to lead the company’s global ethics strategy shows a sudden emergence of importance. Management ethi
In terms of management ethics there are two components; there is the Formal system which is written procedures and policies that direct behaviour so to achieve the organizations goals and deter from miss conduct (leatherwood 1991) or in contrast there is the Informal system is comprised of values, beliefs and traditions that direct the behaviour of group members (Marlow, Taylor and Thompson2010)

Stakeholders theory of the firm refers to the firm not being interested in shareholders but in stakeholders of the firm. Edward Freeman. When noting this it then becomes crucial to define what constitutes a stakeholder to the firm. Maharaj (2008) attempt to simply the theory into simple terms by suggesting two principles. Principle one suggesting the corporation has the obligation not to violate the…

Related Documents