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Making Ethical Decisions in Business - Assignment Example

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The author explains why Boeing settled the class-action sex discrimination lawsuit. The author also examines the ways of avoiding discrimination, the ethical organizational culture of Boeing, moral and ethical issues in pricing, and the reasons why economic forces should be controlled.  …
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Making Ethical Decisions in Business
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5a. Why Boeing Settled the Action Sex Discrimination Lawsuit They settled the claim because they wanted to avert negative publi The evidence weighed heavily against them. It is hard to prove that more than twenty thousand people are lying. The evidence was there proving that there was discrimination against the women (Wall Street Journal [WSJ] 1). If the case was to be allowed to go any further, reputation of Boeing would have been dented. 5b. Ways of Avoiding Discrimination To avoid any form of discrimination in the future, Boeing needs to adopt an affirmative action policy. This policy will ensure that a base line is set that will make sure a certain minimum number of women are in employment. The number of women will be set as a percentage of the total number of employees. To ensure that there is no salary discrimination, Boeing should adopt a policy of paying their staff depending on their experience and expertise, rather than based on their gender or race. 5c. Ethical Organizational Culture of Boeing Organizational culture is the accepted way of “thinking, feeling and acting” in an organization (Bechrast 2). It then follows that ethical organizational culture is the accepted way of thinking, feeling and acting in an organization when it comes to ethics. From this article, it is obvious that discrimination based on gender is a form of organizational culture in Boeing. This is a negative and repressive organizational culture since it leads to the suffering of other people in the organization. The fact that 60% of female employees in Boeing took part in this lawsuit is an indication that this culture is deeply rooted in this organization. 6a: Moral and Ethical Issues in Pricing In setting the price for the rooms, food and tickets to attend a Notre Dame game, there are several moral and ethical considerations that have to be made. The first is discrimination. By increasing their prices for these facilities when there are games taking place, these business men are discriminating against people who cannot afford such kind of spending. It is only the rich who then get to attend the games and stay in the best hotels. As such, there is no accessibility to these services as a result of their pricing. There is also the issue of price fixing. The owners of businesses collude every time there is a game so that they can fix the prices that they will charge. The consumer has no choice but to pay these prices. 6b: Moral Abdication Abdication can be defined as the act of abandoning a position of power or responsibility (Bechrast 3). Moral abdication then is the act of abandoning all moral obligations or responsibilities as one embarks on an activity. It is without doubt that charging exorbitant prices is “an act of moral abdication” on the part of the sellers (Brat A1). In charging these high prices, the business people are exploiting their consumers because there is no value added to the product or service just because the demand has risen. They disregard the fact that there are some people who cannot afford these new exorbitant prices, and these people have to do without the consumption of that particular product or service, which is crucial to them. These all these actions are immoral, it means that engaging in them amounts to moral abdication. 6c: Reason why the Professor should not be disregarded It is true that one does not necessarily have to attend the Notre Dame Football games, or any other game for that matter. But this fact should not be construed to mean that the business people have the right to overcharge their clients just because they have opted to come for the game. Moral obligation does not have boundaries or demarcations beyond which it does not apply (Bechrast 3). It is up to the business people to ensure that they do not abuse their clients on the basis of increased demand. This will amount to disregard of moral values even if the demand has increased. 6d: Why Economic Forces should be controlled The reason why it is not prudent to let the market forces determine the prices even in a capitalistic system like ours are varied. The first is that the item that has a higher demand could be an item that people cannot do without (Bechrast 2). Letting the prices rise because of the increased demand will mean that some people will not afford this item, yet it is crucial. These are for example drugs and other basic commodities and services like food. Another reason is that some of the business people can themselves interfere with the market forces by creating artificial shortages so that prices can rise (Bechrast 2). These artificial shortages include those brought about by hoarding of products. It is up to the authorities and governments to protect consumers from this form of exploitation by controlling the prices. Case Study One: Hooters Bar and Restaurant There are some things that Hooters have to adopt if they are to remain in the business and settle the class action that was brought against them by the former waitresses. The judge will use the PISCO problem solving model to try and provide a solution for the problems that Hooters is facing. First, a statement of the problems that Hooters face will be provided. The factors that lead to the problem will then be provided, and array of solutions that Hooters can adopt given. Out of this array of solutions, a choice will be made that will be the best and viable solution under the circumstances. Implementation of the solution will then be provided. Problem Hooters is no doubt a very successful chain of restaurants and bars. However, everything about this chain spells the word sex. This is from the physical features of their waitresses to the T-shirts that they sell to their customers. The waitresses wear skimpy uniforms. This is composed of tight shirts and tight shorts. The T-shirts that are sold to the clients carry very suggestive and vulgar language (Adonis 7). The uniform that is worn by the waitresses is mandatory, meaning that thy do not have the option of wearing something that they may consider decent. Former waitresses of this chain have taken the establishment to court accusing them of exposing to an atmosphere where they were sexually abused. The fact that no male waiters were hired further aggravated the oppressive environment. The abuse came from all fronts. They were abused by the male staff, the managers and even the clients. From the above facts, it is clear that waitresses working in this chain of restaurants and hotels are exposed to sexual harassment. To stop this harassment, Hooters need to change the environment within which the waitresses operate. The new environment will ensure that there is no female staff, be it male or female, who is exposed to any form of harassment, especially of sexual nature. Input The major factor that leads to this harassment is the uniform that these ladies are made to wear as they serve the clients. The uniforms make them appear mortally lose to the male workers and customers (Adonis 7). Another factor is the issue of hiring female only as their waiting staff. The lack of male companions around the females as they go about their duties makes the male customers bold in harassing these women sexually. Making the uniform a mandatory part of the female staff is another contributing factor. It could have helped if the uniforms were made optional, such that anyone who did not feel comfortable in them does not have to wear them (Adonis 7). Solution One of the solutions available for the Hooters is to do away with the skimpy and suggestive uniforms that are worn by the waitresses. If doing away with these uniforms in totality will pose a problem for the management, they should think of making then optional such that the women who are not comfortable in them do not have to wear them. Alternatively, they can hire male waiting staff so that the clients who are bound to harass these women can be intimidated by these males (Adonis 7). Choice Before choosing the best solution from the above alternatives, it is advisable to look at some of the ethical approaches that are usually adopted in making choices that concern ethical issues. It is from the background of these approaches that the best choice will be made. Utilitarian approach This approach opines that the best choice of any action should have more goods than evils in it. This is the only way that the action can be viewed as been ethical (Adonis 7). This approach acknowledges that every action has some good attributes and some negative ones. However, the best and ethical action should have more positive attributes than negatives. In the case of hooters, all of the above actions have weaknesses that are the source of their negative points. The best action will be that which will be of much benefit to majority of the people than harm. Fairness/Justice Approach According to this approach, the best course of action is that which treats everyone fairly, without favoritism or discrimination (Adonis 7). This is because favoritism and discrimination are all evils that should be avoided. In the case of Hooters, the action that is adopted should not favor the waitresses while harming the owners of the restaurants. An action with the opposite effect is equally undesirable. Virtue Approach Perhaps the most important approach that should guide the adoption of the solution chosen is that of virtue. This approach is of the view that the society is made up of virtues and ideals that we as members of that society strive to achieve (Adonis 8). Any solution that is adopted should reflect the virtues of our society and enhance the development of character of the individual and of the society. In the above scenario, the virtuous choice and the ethical one will be that which reflects the virtue of the society. The virtue in this case is a moral society which is not full of sexual harassment. The Best Choice In this light, the best course of action for Hooters will be to change the policy that states that the skimpy uniforms are mandatory. They should be a choice that the waitress has the option of making: whether to wear the uniform or not. The reason why this course of action is the best is that it is utilitarian. It will have more benefits on the part of the waitresses and the proprietors of the hotel than other options. The waitresses will have the psychological benefit of a sense of freedom while the proprietors will retain that sexual appeal using those waitresses who opt to wear it. This decision does not favor the waitresses or the proprietors. This is because the waitresses benefit by been able to make choices while the proprietors benefit by retaining the sex appeal of the place. Operation The first step that Hooters will have to take is making it public that it will be optional for their female staff to wear the skimpy uniform. They follow this by issuing a disclaimer on all the male customers and staff that harassing the women who opt to wear the uniform is an offence. It then should be made very clear to the waitresses that they have the option of wearing the uniform or any other uniform that befits them. 2a. it is advisable that the waitresses should have spent sometime in the hotel before applying for a job there. They would have acquired knowledge as to the nature of the restaurant and the clothes. This been the case, they would not have had any right to allege sexual harassment. This is because the choice they could have made in getting employed there would have been informed. 2b. it is the moral and ethical obligation of any employer to ensure that every employee enjoys psychological peace in the work place. This they will do by making sure that the employee is not abused or harassed in the work place. It is also the obligation of the employer to make sure that every employee makes his or her own choices regarding matters like dressing and conduct in the workplace. No worker should be forced to wear uncomfortable clothes in the workplace. 2c. the hooters management should take legal action against every person found to be sexually harassing the female employees. This is regardless of whether the individual is a male employee or a customer. 2d. the waitresses were wrong in thinking that Hooters is a family chain of restaurants. This is because it is common knowledge to every person in the town that Hooters is a sexually oriented joint. 2e. I personally will not work for Hooters. The reason for this is that I have no desire to be associated with a joint that does not respect the rights of the woman in the society. 2f. I would not work for Hooters, neither will I be their client. Going to this restaurant will be an endorsement of the vulgarity of this joint, which I have no wish to engage in. 2g. this is unfair because it amounts to using the women as a sexual object to attract the clients. 2h. Hooters should not be forced to hire male wait staff. They have the right to choose who to employ in their establishment depending on the business interests involved. If men do not attract customers, then why hire them? Where will the money for paying them come from? And Hooters is not as discriminatory as many people will like to portray it. There are male staff employed in the kitchen and in managerial positions. 2i. there is nothing wrong with the Hooters establishment donating money to the church. Both parties in the transaction are aware of the goals of the other. The church is aware that the establishment is just looking for publicity, while the Hooters is aware that the church needs money. It would have been another story if there was evidence of one party exploiting the other for personal gains. References Adonis, Bernard. Making Ethical Decisions in Business. 2nd ed. New York: McGraw-Hill, 2009. 2-3. Bechrast, Stevens. Sexual Harassment of Female Restaurant Staff: A Case Study of Hooters Restaurant. New Jersey: Prentice Hall. 45. Brat, Ilan. “Notre Dame Introduces Consumers to Price Hikes.” Wall Street Journal. September 7th, 2006. A1. Wall Street Journal. “Boeing Pays Millions to Settle Discrimination Lawsuit.” Associated Press, November 12th 2005. 1. Read More
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