MB523-GL Week 2 Discussion Post: Should Managers have Code of Ethics like Accountants, Lawyers, and Life Underwriters?

Yes, managers should have code of ethics. Leader’s integrity has a direct effect on forward movement of the employees in all industries. Best managers are those that prioritise ethics and fairness while focusing on their personal performance. Managers that comply with the terms of a code of conduct provide an effective working environment for employees and build an excellent public image for the company. 

These profit-seeking processes are part of an organisation’s social responsibility. As Kubasek (2016) explained, managers are the individuals in charge of maintaining an organisation’s social responsibility or positive relations with the society and political authorities. Disconnect between a company’s code of ethics and managers leads to unequal practice of ethical behaviour by other staffs. Consequences include financial losses, increased greed as managers take actions that only benefit them, and lack of growth.

Widyani, Landra, Sudja, Ximenes, and Sarmawa (2020) explained that two primary aspects that define a Manager’s success are entrepreneurial spirit and ethical behaviour. Hegarty and Moccia (2018) added that managers’ honesty, accountability, and integrity are promoted by compliance with code of ethics. Managers should provide accurate information about an organisation’s production and profitability. Dishonesty in these areas will have negative impacts on the performance of the firm.

Code of ethics also promotes accountability. Good managers are those that accept responsibility for their work performance and activities, in the same way they expect workers to do. Integrity or consistency in decision-making and conflict resolution approaches also stem from code of ethics. According to Widyani et al. (2020) decisions that require ethics the most are those relating to business continuity. Managers with these qualities set clear objectives and assist employees to achieve them. Again, managers have the duty of demonstrating to all the acceptable conduct in the workplace. They should engage actively in teamwork and employee motivation.