Most managers think of themselves as ethical persons, but some still question whether ethics is relevant to their role as a manager. The implication is that a manager need only be an ethical person. There is no need, in other words, to have specialized knowledge or skill in ethics. It is important for people in business to be ethical, they might say, they might say, but being ethical in business is no different than being ethical in private life.

Nothing could be further from the truth. For that, it is necessary to consider both Ethical Management and Management of Business Ethics. Although there is no separate of business, situations arise in business those are not easily addressed by ordinary ethical rules.

A useful distinction can be made between ethical management and the management of business ethics. Acting ethically is important, both for individual success and organizational effectiveness. Business ethics is often conceived as acting ethically as a manager by doing the right thing. This is ethical management.

The management of ethics is acting effectively in situation that has an ethical aspect. Internally, the organizations bind the members together through many rules, procedures, policies, and values that must be carefully managed. These situations occur in both the internal and external environment of a business firm. Externally, effective organizational functioning depends on gaining the acceptance of the rules, policies, and other guides, and this acceptance requires a perception of fairness and commitment.