Moral problems in business are complex and difficult to resolve because some individuals and/or groups associated with the firm are going to be hurt or harmed in ways outside their own controls, while others will be benefited or helped.
Business managers cannot rely upon their moral standards of behavior, or the intuitive ways they just automatically feel about what actions are “right” and “just” and “fair,” to make their decisions when faced with moral problems.
Business managers have to recognize that the individuals and groups associated with their firms will have different moral standards as to what they believe to be “right” and “just” and “fair.”
If analytical procedure is followed with a moral solution that is logically convincing to the individuals and groups associated with the firm, the result will be an increase in trust, commitment, and effort among those individuals and groups.
It is not enough for the senior executives in a firm to recognize moral problems, develop moral solutions and possess moral integrity in order to build trust, commitment, and effort among all of the individuals and groups associated with the firm. The sense of integrity has to spread throughout the firm, and that requires a mission statement based on organizational values and corporate goals and sustained by financial supports, performance measures, incentive payments, prohibited procedures, and leadership actions.
Reference: Hosmer, L. R. (2003). The ethics of management (4th ed.). Boston: McGraw-Hill
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