Case Study-James Hardie

2116 Words Nov 6th, 2008 9 Pages
Executive summary:

This report serves to analyze the external and internal environment of James Hardie and explain the important of managerial ethics and corporation social responsibility.
In James Hardie case, since the managers solely pursued profit maximization, it neglected employee’s safe and health, which result in 137 young worker died due to asbestos-related diseases.
Money as the single bottom line is increasingly a thing of past. Pursued profit leads to unethical management, propagate false or misleading information, bad corporation reputation, unstable employment, reducing long run profit etc.
More and more concern is displayed with managerial ethics and social responsibility. Some may regard them as cost which will
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As a responsible manager, the standard of ethics is not to do anything unlawful or improper that will harm the organisation. Following are some rules in managerial ethics:
 Conduct business in compliance with all laws.
 Payments for unlawful purposes are prohibited.
 Bribes are prohibited.
 Avoid outside activities that impair duties.
 Maintain confidentiality of records.
 Comply with all antitrust and trade regulations.
 Comply with accounting rules and controls.
 Do not use company property for personal benefit.
 Employees are personally accountable for company funds.
 Do not propagate false or misleading information.
 Make decisions without regard for personal gain.

2. Management Ethics and profitability are not mutually exclusive.
Some who are only chasing for profit regards ethics as barrier. However, lots of researcher approve that managerial ethics are not mutually exclusive with profitability.
A recent study done at the University of Chicago by Prof. Curtis Verschoor and published in Management Accounting found that companies with a defined corporate commitment to ethical principles do better financially than companies that don’t make ethics a key management component. Public shaming of Nike’s sweatshop conditions and slave wages paid to overseas workers led to a 27% drop in its earnings several years ago. And recently, the shocking disregard of ethics and subsequent
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