Explain the Role of Professional Management for creating goodwill business?

Role of Professional Management for creating goodwill business :

Ans.    “Good ethics is good Business” This suggest the importance of ethics in business. It provides protection, justice and fair treatment to ethical business is equally profitable. Business should therefore support the concept of business ethics.

Business ethics is important to business community, consumers and the society at large. The most common belief that “Good ethics is good business” is true. Businessman have economic power which they can use for making the life of people happy or miserable Businessman should conduct business in fair and ethical manner and make people happy. This is good business and good ethics. Businessman may earn quick profits through unethical practices along with this they may also invite customer displeasure, Government control and non co-operation from the employees. These factors harm the future prospects of business. Business will not get support from the society when justice is not done to different social groups. It is rightly said that “Honesty is the best policy” & also beneficial in long run. Businessman should not be short-sighted. They should have vision and foresight. They should be fair to all social groups and offer them benefits and happiness. Ethical values should not be discarded in any human activity and business should not run after profit maximisation at any cost. They should support ethical values while managing business activities.

It is always desirable to strike a balance between economic performance and social performance of business unit. Business ethics facilitates such balance. Businessman should decide what is social good and what is socially undesirable and act accordingly. This will make their business ethical and also beneficial to them and to the society at large. Business also gets public support when it is conducted in a fair manner.

Measures to Improve Ethical Conduct of Business

Introduction :

The ethical behaviour or conduct can be improved or can be accelerated by introducing a three tier system. It is necessary to include the importance of ethical conduct at different levels which will ultimately benefit to everyone.

                        The three-tier system of ethical conduct

                                    At the Institutional Level

At the Government Level                         At the Society Level

(I)      At the Institutional / Organisational Level

1.      Independent Rules of Behaviour : Every institution should prepare its own Rules of behaviour / conduct for its human resource. Such rules will help them to decide what is accepted and what kind of behaviour is rejected.

2.      Proper Mixture of Motivational Factors : The organization should introduce mix of proper motivational factors. Under this the employees who follow code of conduct, can be rewarded in positive manner. Whereas whose behaviour is against the code of conduct can be punished or negative reinforcement can be used.

3.      Guest Lectures by Eminent Personalities : To imbibe the importance of ethical behaviour among the employees; organizations can arrange guest lectures of eminent personalities. Experience shared by such individuals will boost the feeing of ethical conduct.

4.      Workshops / Seminars : Different workshop can be arranged to develop the ethical approach among employees. In this, varied management games, case studies, Role-plays can be included to make it interesting.

5.      Review and Feedback : Every organisation should develop a proper system of review and feedback. It will help to monitor the success of “Code of Conduct Programme” of the organisation.

(II)    At the Society Level :

          Measures can be taken at society level in following ways :

1.      Investors Participatory Programmes : Through various participatory programmes investors can pressurize the business or organizations for adoption of ethical conduct. Such practice will prevent the unethical activities like Insider trading.

2.      Consumer Forum : Different Consumer forum, Grahak Manch, Grahak Parishad can take lead to insist upon code of ethics in organisation.

3.      Role of Media : Proper use of media can be supplemented for improving the ethical practices in the organizations. Television, radio, newspapers, magazines can create awareness among the citizens against cheating, exploitation and other unethical practices.

4.      Role of NGO : NGOs can contribute in better way to spread the ethical awareness in the society. NGOs can work for curtailing the immoral activities of the business.

5.      Use of Legal Weapons : Citizens should take initiative for utilizing the various weapons gives by the law. Right to Information Act, Lokpal bill are the new ways to find out the level of transparency and true and fair view in administration.

(III)   At Government Level :

1.      Proper Implementation of Laws : The various Acts or laws which are established with the objective of protection of different stakeholders must be implemented in proper manner. They should not be misused.

2.      Abolition of Outdated Requirement : The outdated legal requirements, provisions having various loopholes must be abolished. Such provisions give a chance to individuals to involve themselves in unethical practices.

3.      Rapid Action Against Criminals : Quick and prompt action must be taken against those who are involved in different crimes. It will increase the confidence of general public in judiciary system.

4.      Facilitation of Social Reformists : Government can felicitate those citizens who are actively involved in social reforming activities or who are social workers. E.g. Famous social Reformist Mr. Anna Hazare who worked hard for introduction and implementation of Right to Information Act, 2005.