business ethics business ethics ethical management and leadership

1. Outcome 4
Ethical Management and Leadership

2. Leadership

3. Management
• is a function
• in which group of people manage
• business organizations and institutions.

4. Management
Management includes managing
Men,
Money,
Machinery,
Materials, and
Information.

5. Management
Art of getting things done by people.

6. Levels of Management
There are 3 levels of management.
1.First Level or Low Level or Front Line
2.Middle Level
3.Top Level

7. Leadership
• is the ability or quality of an individual
• to guide and direct others
• towards achievement of organizational goals.

8. Leader
• is a person
• who influences, induces, and directs
• his followers.

9. Manager Vs. Leader
Manager
• Manager imposes his order
• through planning, organizing,
coordinating, etc.
Leader
• sets the tone, develops the vision, and
shapes the behavior
• Through motivating and inspiring people.

10. Manager Vs. Leader
Manager
• uses a formal method.
Leader
• encourages people (uses informal
method).

11. Ethical Leadership /
Ethical Management
Managers or leaders are the lens through
which the employees view the company.
The leader/manager is the role-model of
his team.

12. Qualities of an ethical
leader/manager
• Treats people equally.
• Encourages his team to hold these qualities.
• Influences his team positively.
• Creates ethical work environment.
• Sets the standards for his team members
through his behavior.

13. OOC boss gets 23 years jail
term in graft case
• MUSCAT — The Court of First Instance in Muscat yesterday
sentenced the CEO of Oman Oil Company (OOC) to 23 years in jail,
a fine of RO 8 million and ordered him to be sacked from his post
permanently in connection with the Sohar Aromatics case.
• The second accused in the case — who is a former adviser to the
ministry of national economy — was awarded 10 years in jail, a fine
of RO 4 million and deportation for a life-long after severing his
term.
• The third accused — CEO of South Korea’s LGI Corporation — was
sentenced to 10 years imprisonment and a fine of RO 4 million as
well as deportation for a life-long after serving his jail term. The court
also ordered the restoration of $8 million to the public treasury and
that the defendants settle the litigation.

14. • Last December the Public Prosecution accused the
CEO of Oman Oil Company with abuse of office,
accepting bribes from LGI to facilitate a $1.6 billion
pact for construction of the a petrochemical aromatics
plant at Sohar industrial port for the Korean firm.
•
The second defendant was convicted of taking bribes
and the third — Korean national CEO of LGI
Corporation — was found guilty of offering bribe to
procure the contract.

15. Juma Al Hinai, the head of the tenders committee
at Petroleum Development Oman (PDO),
• A public prosecutor at a Muscat court accused Juma Al
Hinai, the head of the tenders committee at Petroleum
Development Oman (PDO), of receiving the bribe from
two executives of Galfar Engineering and Contracting, a
local firm.
• Hinai denied the charges. Mohammad Ali, managing
director of Galfar, and Abdul Majeed Nusha are also on
trial on charges of paying the bribe. They denied the
accusation.
• The case appears to be part of a wider official probe into
graft in the oil industry. At least one other senior
executive is being separately investigated, according to a
senior industry official.

16. Ethical Leader/Manager
Ethical leader/manager is a person
1.who treats and leads his team in ethical
ways,
2.takes right decisions, and
3.sets himself as a role model for others.

17. Characteristics of Ethical Leader
• Dignity and respectfulness
• Justice
• Honesty
• Serving others
• Community building

18. Honesty
• He should be loyal and honest.

19. Serving others
• He should serve others.
• He should place his followers’ interest
ahead of his interst.

20. Community building
• Development of community should be
a goal of him.
• He should work hard for the community
goals.

21. Ethical Codes (or)
Code of Ethics
• are the statements of specific
standards, values and actions
• drafted and approved by management.
• are published and distributed to staff.
• Organizations, professionals, or
employees should follow these codes.

22. • A public prosecutor at a Muscat court accused Juma Al
Hinai, the head of the tenders committee at Petroleum
Development Oman (PDO), of receiving the bribe from
two executives of Galfar Engineering and Contracting, a
local firm.
• Hinai denied the charges. Mohammad Ali, managing
director of Galfar, and Abdul Majeed Nusha are also on
trial on charges of paying the bribe. They denied the
accusation.
• The case appears to be part of a wider official probe into
graft in the oil industry. At least one other senior
executive is being separately investigated, according to a
senior industry official.

23. Types of Ethical Codes
1. Code of ethics for organizations
(Corporate code of ethics)
2. Professional code of practice
(Professional Ethics)
3. Code of conduct for employees
(Employees’ ethics)

24. Ethical Codes
are the statements of
• specific standards,
• values, and
• Actions
drafted and approved by the management.
are published and distributed to the staff in
the organizations.

25. Types of Ethical Codes
1. Corporate code of ethics
2. Professional ethics
3. Employees’ ethics

26. Ethical decision making
1. Identify relevant facts and issues.
2. Identify parties associated with the problem.
3. List out possible solutions.
4. Evaluate each possible solution.
5. Compare and assess consequences.
6. Decide on a solution.
7. Take action.
8. Evaluate the decision.

27. 1. Identify relevant facts and issues.
2. Identify parties associated with the
problem.
3. List out possible solutions.
4. Evaluate advantages & dis advantages
each possible solution..
5. Decide on a solution.

28. Ethical Dilemma
• Moral dilemma, is a situation in which
there are two choices to be made, neither
of which resolves the situation in an
ethically acceptable fashion.

29. Accepting Gifts or making
personal gains is unethical
• Purchase manager may get influenced by
the gift and will purchase only from that
supplier for the supermarket.
• He may not care about the quality of the
product
• Unethical
• Similar to bribe

30. Keep Confidentiality
• An employee should not share the Confidential
information of the bank
• It is the duty of an employee
• A bank should never share the account
information of a customer unless a legal issue
occurs
• Cashier Aseela has to follow her obligation
towards her job
• Personal relationships should not affect the
official work.

31. Personal work should be kept
separately
• Personal work should not be done using the
company assets
• Software developed by the employee using the
company assets should be the property of the
company
• Commitment towards the work environment is
much important than making profit for personal
benefit.

32. Professional ethics
• Professional ethics of a teacher
• If teacher agrees to one student then what
about the other students
• It is unethical for a teacher to be partial
with a student
• It is injustice to all other students