Ethical Behavior in the Context of Managerial Decision Making and Satisfaction of Employees: Lessons from the Experience of the Post-Transition Country

Ethics as a term in the transition and post-transition countries is quite often the subject of various researches. The main reason for this is the fact that ethics is one of the key factors for company’s long-term success and that it is almost neglected when certain business decisions are made. In the business environment, decisions must be taken quickly, under time pressure that does not leave much space for rational judgment. Competition, public, superiors, employees, state organs, and private life are such concepts that should be taken into account when a certain business decision is made. Thus, it is very hard for one to think ethically when making decisions in such a complex environment and under such a huge pressure. In today’s modern world, this is extremely demanding, especially for ourselves in our own decision making, for the company we work for, and ultimately for the society as a whole. It is quite clear that decision making is not an easy process for managers.

In addition to the ethical behavior of managers in business decision making, the subject of this work also includes the satisfaction of employees. Ethical decisions made by managers, directly and indirectly, affect employee satisfaction. Employees are those who participate in the realization of numerous decisions made by managers. Both the business success and the future of the company depend on the stated realization. Managers should be aware of their own impact on employees and determine the criteria that make employees satisfied in order to achieve mutual benefit.

Measuring the level of ethics in a company is not possible because it is something intangible, but this chapter will show components and guidelines that can help managers to be more ethical in business decision making. The aim of this chapter is to encourage and raise awareness of the importance of ethical behavior in decision making in every business situation, without exception. Managers can learn how to make an ethical decision using the same learning tools for improving decision making daily. With the use of certain learning tools and ethical principles, managers are able to make decisions that are consistent with socially responsible behavior reflecting positively on the employee satisfaction and the business success eventually.