Core Principles of Organizational Management and Ethics
Economic Principles
Every organization must establish clear objectives, primarily focusing on economic profitability. While profit is typically associated with private enterprises, public organizations must also address economic goals. Furthermore, some private organizations prioritize social returns, often operating through the receipt and distribution of donations.
Administrative Principles
Both for-profit and non-profit organizations require structured systems to achieve their objectives. The gold standards for these systems include:
- Efficiency: The relationship between outputs and inputs used.
- Productivity: An indicator of efficiency associated with productive activity, extending to administrative authorities.
Ethical Principles
Ethics, a branch of philosophy, studies how individuals achieve the common good through their activities. This cannot be separated from administrative matters, as both concern human beings and their organizational behavior. It encompasses the study of rights, obligations, and moral standards.
Social Responsibility
Organizations should generate benefits for both owners and society. Social responsibility is categorized as follows:
- Primary Social Responsibility: Related to the development of the business and the effects of organizational actions taken to achieve its ends.
- Secondary Social Responsibility: The organization's contribution to solving societal problems and addressing social issues.
Sustainable Resource Management
Following ethical doctrines, we must respect the integrity and cycles of nature, as resources are limited and some are non-renewable. The current rate of exploitation threatens the availability of resources for present and future generations. Any activity that utilizes natural resources must prioritize safeguarding the environment. Human activity and its impact on climate change must be constantly monitored through scientific, political, and legal frameworks at both national and international levels.