Inthe recent time, the issue of business ethics has become a thing ofconcern for numerous business management teams. Over the time, ethicshas become an important aspect in business. One of the key aspectsthat drive business entities to be concerned with business ethics isfor the business to avoid any scandals. As well as avoid being tailedby the government agencies. Ethical culture has become everyorganization’s priority, as it stated ethics is no longer an optionor a luxury within a business. In addition to a business protectingits image from being tarnished or ethical culture has beenimplemented to keep in touch with a business social responsibility.Another reason why a business should be concerned with its ethicalculture is due to the fact that, businesses are establishing a valuebased culture and in turn they are concerned with ethical aspects(Treviño& Nelson, 2011).Finally, the adoption of ethical culture is because it’s the rightthing to do. Other factors contributing to this is the formation ofdifferent business laws, maintaining professional standards.
Organizationalethical cultures can either be weak or strong. A strong organizationculture is defined by well laid guidelines that are shared within abusiness entity, which in turn gives common direction to the dailyoperations in a business organization. A weak organizational cultureis marred by endless conflict, misconducts, and retaliation on thejob. In order to determine whether an ethical culture is weak orstrong, there are varying management policies that can beimplemented. One is the performance management policy, which is anintegral element for measuring organizational performance. Anorganization’s performance displays the organization culture whichcan either be strong or weak. Other workplace policies that are keyin determining the ethical culture is recruitment policy. Code ofconduct policy, health and safety policy’ among other policies.
Ina business organization, trust is an essential element, and a moreelusive benefit of ethics. It’s evident that, trust is an essentialelement in the business conducts. Trust is the belief between twoparties, both the customer and the business, or two businesses, theparties involved can work together towards a common goal. Trust isessential to any business establishment as well as to any businessethical culture. Trust is developed over time, but it’s a vitalingredient which allows for better business operations. Lastly, trusthelps in the observation of an organization’s ethical culture as itallows the subjects to respect the organization’s establishedethical culture (Treviño& Nelson, 2011).However, when trust is lost, there is a tremendous negative impact tothe business organization, as it’s said, trust is easy to lose buthard to gain. When a business entity loses trust with its clients,and with the society, it suffers financially, negative image, reducedsales as well as loss of clients.
Costbenefit analysis isn’t appropriate when it comes to aspectsinvolving human life. The case entailed the explosion of for pintosas a result of a defective fuel system. The case was about thecost-benefit analysis and the ethics behind the decision not toupgrade the machine’s fuel system. With reference to human life,the cost benefit analysis shouldn’t be considered as it was thecase with pinto case study. This is due to the fact that it seemsunethical that people should be left to die from injuries when thereis an alternative. The company had the chance and the option toimprove the car (Treviño& Nelson, 2011).
MiltonFriedman is known for his sentiment and advocacy for profitmaximization. With reference to the case study given and thesituation in question, Milton would view the cost-benefits in termsof whether the company should make the production change, as well aswhether the to focus on company profits. He would have weighed therisk of the harm vs. the overall cost of avoiding the harm. On theother hand, Ed Freeman would view it as company’s responsibility tomake the relevant modification for improved customer security, whenusing the product (car). With reference to the golden rule, thecompany would be forced to give what it would expect to receive. Thisapproach would give a different result, as the company would overlookthe cost benefit analysis (Treviño& Nelson, 2011).Finally, with reference to where to draw the ethical line on productsafety, the boundary should be at the point when it possesses athreat to human life, it should be re-evaluated. This would be thecase, despite the expected financial gain from the product.
Withreference to the pinto case study, there are numerous ethicaldilemmas. These included the value for the human life in comparisonto the cost of the car. There was continued production of the car,and in turn continued loss of life due to the problem with the car.It was in turn an ethical dilemma, whether to continue the vehicleproduction or stop it to save human life. In addition, there arenumerous ethical issues in the case. One is that a mistake wasjustified by the use of utilitarianism approach. In addition, thecalculation of human life is wrong in the case. Another issueincludes, whether the company should betray its royal customers, andignoring of the reports from the field and neglect of the safetyissue. The affected parties included government, environment,suppliers, consumers, management, employees, shareholders among otherparties (Treviño& Nelson, 2011).
Withreference to the theories used in morality related issues, I would gofor the deontological approach. This theory advocates for bothactions and outcomes to be ethical. Itpoints out that the action’s morality is of greater weight and theresult of a wrong action does not make its outcome the same. Theimpact of my decision is that, the actions of the employees would beequally responsible for an unethical behavior and not only theresults of their actions. This action would save the justification ofunethical actions through the aspect of ‘the end justifies themeans’.
Thereare different scenarios that can lead one to whistle his or herorganization about an alleged or an ongoing unethical conduct. In therecent time there are channels set for employees to whistle aboutsomething that may be ethically wrong. In my case, the condition,which would lead me to shout or report about unethical behavior, iswhen the parties involved are clearly aware that whatever action theyare undertaking is unethical. Some unethical actions are done withthe victim aware what they are doing. This would be quiteun-expectable. On the other hand, I would report unethical actionswhen they are totally against the company or the business guidelines,goals and objectives (Treviño& Nelson, 2011).
Onhow to go about the process of whistle blowing I would follow anyofficially established channel for reporting any unwanted conductwithin an organization. If the organization doesn’t have anofficial set channel for reporting I would report the case to theimmediate boss to the culprit. For example, starting withdepartmental level, before notifying the executive management,however, this may occasionally result to victimization, and insteadof doing it openly, I would anonymously notify the relevant office tohandle the case. This would protect my identity as an employee, andat the same time gives a chance for the case to follow up. Thisadequately saves me from expected risks such as victimization byother employees, negative retaliations from the involved employees.Other risks include being labeled my finances may come under fire,as well as tarnished relationship with fellow employees. These amongother risks are the reason behind why numerous whistleblowers’doesn’t want to be known.
Withreference to the case scenario given (Green Company, anenvironmentally sustainable company), the intended work is to have aneffective ethics, communication and training program, for all itsemployees. However, the process looks hard to be achieved, as theonly person I have met is the human resource manager who hasdiscouraged me from talking to the employees. One of the problems inthe case that is hindering the process is the lack of leadershipcommitment. The human resource manager is trying hard to discouragethe process such as saying the employee might not be willing to talk.In addition, there is a problem with the company’s inquiry andreporting mechanisms (Treviño& Nelson, 2011).Another problem with the company is the existence of fear among theemployees or the leaders, as efforts to talk to them has beenfruitless.
Inorder to solve the menace and help in establishing and enacting thetraining program, first is to develop an effective communication andawareness initiative, Awareness Training. The initiative to form anethical program within the organization, there is the need to involveall the stakeholders in order to be successful, and this would leadto the teaching program to the entire parties involved establishingthe ethical culture within the organization.
Ethicscheck is frequently used to identify and tell whether any givenbusiness decision is ethical. Such checks include is the actionlegal, is it balanced, and what is the actions impact to theindividual affected. Applying these questions to the scenario given(my friend wants to copy my assignment). Is this action legal? No. Isit balanced? No. How will this action make me feel? A liar. From mypoint of view, the action is ethically wrong, however, to my friend,despite knowing this, he is comfortable doing it. To him, the endjustifies the means, and as far as he manages to deliver hisassignment in time, he is ok doing it. My decision would be to helphim write his paper using my copy. Or else, ask for an extension fromthe professor, this would save both me and my friend from beingguilty of the unethical behavior (academic cheating).
Withreference to the case scenario given in question 8, the additionalcash payment of $2500 in a sealed environments looks like a bribe(Treviño& Nelson, 2011).The first question with reference to the money, why is not being paidtogether with the rest, hence the conclusion it’s not a genuinepayment, but instead looks more like a bribe. The benefit of the girlbeing adopted doesn’t justify the method used to achieve the meritsof the adoption process. In regard to the adoption process, I won’tgo ahead with the process. If the girl really needs an adoption, whatis the meaning of the extra payment? The main question behind theprocess is that, is bribing worthy when adopting, the ethical aspectsof the acts is found wanting. The moral theory that would help me tomake the decision is the deontology theory. This advocates for theright or the acceptable action and the nature of the duty, hence theend result of an action doesn’t justify the action itself if it wasethically wrong.
Treviño,L. K., & Nelson, K. A. (2011). Managingbusiness ethics: Straight talk about how to do
Itright.New York: John Wiley.