SUMMARYThe concurrent growth of interest in management competencies and management development and in business ethics, exposes a need to bring these two fields together. The moral dimension to organizational behaviour should be considered when management education and development programmes are being designed. Those concerned with ethics in business and management should look beyond approaches based on codes of conduct and traditional educational methods. In this paper the idea of management competence is conceptualized broadly, with insight drawn from sources in education and social psychology. It is argued that ideas derived from Kohlberg's work on moral development can provide the basis for management development programmes in which theoretical understanding of ethical theory and moral issues is augmented by commitment to personal principles, a well integrated sense of personal identity, and relevant interpersonal skills, acquired through experiential learning.