Resolving and Managing Common Ethical Dilemmas - Case Study Example

Introduction The current business environment is facing a number of complexities in the recent years. Owing to the fact that the global economy in the recent years has demonstrated significant fluctuation burdened with economic recession, its impact on many organizations has been adversarial. Thus, many organizations have been widely involved in cutting some costs in order to reduce the negative impact of uncertain economic condition on its profitability and survive successfully. In this regard, organizations are finding reducing staff or downsize and layoff of jobs as the easiest way to cut costs. Besides, organizations are engaged in shifting their manufacturing facilities to developing countries as a cost cutting measure. However, such strategy of organizations has led towards the emergence of many ethical problems between the organizations and its stakeholders (Karake-Shalhoub, 1999). Ethical dilemma is literally defined as a moral situation in which an individual has to make choice between two or more options. On the other hand, ethical dilemma in business is said to be existing when the decision makers within the organizations are encountered with making choices amongst two alternatives that may have a serious impact on the organization’s profit earning capability and/or its stakeholders (Shata, 2013; Fernando, 2009). Correspondingly, this essay intends to demonstrate an in-depth understanding and application of the ethical dimension of business decision making. Is The Situation Facing Jenny Constitute An Ethical Dilemma? And Why? In the given case study, Omax which is a large home appliances company is faced with the radical need to cut its workforce as its one of the strategies to shift its manufacturing activities to developing countries. In a board meeting, senior management team assigned Jenny who is working as HR manager in the company with the task to downsize the procurement department within the company. However, there are two individuals namely Alan and John who are currently working as procurement officers and are liable for sourcing suppliers. Unenviably, only one position is available within the procurement department corresponding to the downsizing strategy. Hence, Jenny is challenged with the choice to retain either Alan or John. Notably, off the job both Jenny and John are the members of book club and have formed friendship with each other. Besides, Jenny is also aware that John recently has a new born baby and realizes that the job would important for John and for his family. Now, Jenny is finding it difficult to make decision regarding the layoff. Jenny is unsure whether she should favor John by giving him the job or to retain Alan. From the backdrop of the given case study, it can be stated that Jenny is facing an ethical dilemma. The situation being faced by Jenny can be considered to constitute an ethical dilemma because two moral values can be identified to be in conflict. The two moral values that are in conflict can be recognized as “friendship” and “loyalty”. Hence, in the situation if Jenny favors John by giving the job to him i.e. retaining him, it would mean that she is disloyal towards Alan as well as to her company. On the other hand, if, Jenny decides to retain Alan in the only available position it will be viewed as disloyal of one friend to the other despite the awareness of the importance of the job to John (Bhatia, 2002). Draw on Your Knowledge of Two of The Ethical Theories Discussed in Chapters 1 and 2 and Explain Their Relevance to the Situation. You Also Need to Provide Suggestions to Jenny Based on Your Learning. Knowledge of Two of the Ethical Theories Discussed In Chapters1 and 2 and Their Relevance to the Situation In order to provide suggestions to Jenny, it would be vital to acquire an understanding regarding relevant ethical theories. Thus, two normative theories of ethics namely ethical egoism and utilitarianism have taken into consideration. According to ethical egoism, an individual is supposed to do an act which actually meets the goal of self-interest (Ahmad et al., 2005). This theory views that the best way to promote the interest of others can be attained by pursuing own interest completely. While on the other hand, this theory discards the notion of “betterment of the society” (Shaw et al., 2009). Although, the theory focuses on concentrating on self-interest but it does not mean attaining self-interest at the cost of others. More specifically, the theory governs that while realizing moral deliberation, an individual should not harm the interest as well as wellbeing of others. Instead, it argues that the self-interest of an individual as governed by the theory should have neutral effect on others. The ultimate principle underlying in ethical egoism is that what an individual does will not only be beneficial to that individual rather it will help everyone (Hinman, 2007). Concerning the case, from the standpoint of ethical egoism, it can be stated that Jenny may not give job to John as she may be interested in staying loyal towards the senior management team. Nonetheless, this may seem to be contradicting with the short-term interest of Jenny but it will probably benefit Jenny in the long-term. Thus, Jenny may probably make her decision based on the merits along with the ability of Alan and John and retain the best candidate which would help her company to have in their possession the most competent employee. Besides, it will aid in meeting the self-interest of being loyal to the senior management team as well. On the other hand, utilitarianism theory argues that an action of an individual is morally justifiable if the action maximizes the happiness and reduces the sufferings. The theory primarily focuses on the end result rather than measuring the means undertaken by individual to reach the outcome. One potential difference between the theory of ethical egoism and the theory of utilitarianism is drawn on their focus. Accordingly, the theory of ethical egoism views morality predominately from the lens of individual perspective while the utilitarianism theory views the morality from the perspective of group or the society as a whole. The underlying doctrine behind this theory advocates an individual to act in a certain way that would result in achieving the greatest plausible balance of good over bad for those affected from the conduct of the particular action. Unlike the theory of ethical egoism, utilitarianism theory places importance on community interest over the self-interest of an individual. The theory further argues that the community is composed of individual members and the welfare of the community can be achieved only when more and more members in the community are happy or have diminished pain. Relating the utilitarianism theory with the given case, it can be stated that if Jenny retains to John, the family of John may be benefitted and it will also ensure loyalty as a friend. On the other hand, if Jenny decides to retain an individual amid Alan and John, on the basis of merit along with capabilities, it would result in benefitting the company as the most suitable employee will be selected as well as her loyalty towards the company will be maintained (Shaw et al., 2009). Suggestions to Jenny It is worth mentioning that virtue of ethics primarily deals more with the moral actor (the individual) rather than the action taken. In this case, the issue does not deal with ‘what will be the right to do?’ Or ‘who will be benefitted?’ The major issue in the given case is to determine whether the action of Jenny can be measured based on morally good characteristics i.e. loyalty and honesty (Garsten & Hernes, 2008; Andrews, 2000). The last step pertaining to moral decision making, ultimately requires Jenny to make a decision. It is worth mentioning that in terms of ethical dilemma, answer cannot be categorized as right or wrong (Sears, 2008). Following the circumstance faced by Jenny and based on the insights acquired on ethical theories, it is suggested to Jenny that if retaining John in the only available position makes her happier than being honest and loyal to Alan and senior management team, she should not give the job to Alan instead the job should be given to John. On the other hand, it is suggested to Jenny that if being loyal and honest to the senior management team of the company provides her with greater happiness then she would retain an individual on the basis of merit and capabilities of the two employees rather being emotionally driven. Conclusion It has been observed that the current business domain is faced with numerous challenges. In such dynamic business environment, managers are often confronted with different challenges related to ethical dilemma. In the given case, Jenny who is a HR manager in Omax can be identified to face with a situation of ethical dilemma. Bound by the downsizing strategy, she is forced to lay-off an employee from the procurement department along with retaining only one individual amid Alan or John as a procurement officer in the single available position within the procurement department. Since, she has developed a friendship with John and is also aware of his family requirements, she is in a quandary in terms of doing favor to John by giving the job to him. However, she is troubled with the fact that if she favors John and gives the job to him, it will probably result in the breach of loyalty towards her company. Thus, in order to deal with the existing ethical dilemma, it is suggested to Jenny to give the job to the suitable employee either Alan or John solely based on the merits and capabilities revealed by them in the past. References Andrews, W. A. (2000). Identifying, resolving, and managing common ethical dilemmas in the workplace: an experiential approach. Developments in Business Simulation & Experiential Learning 27, 68-75. Ahmad, N. H., Ansari, M. A., & Aafaqi, R. (2005). Ethical reasoning: the impact of ethical dilemma, egoism and belief in just world. Asian Academy of Management Journal 10(2), 81-101. Bhatia, S. K. (2002). Business ethics and managerial values: concepts, issues and dilemmas in shaping ethical culture for competitive advantage of organizations. India: Deep and Deep Publications. Fernando, A. C. (2009). Business ethics: an Indian perspective. India: Pearson Education India. Garsten, C., & Hernes, T. (2008). Ethical dilemmas in management. United Kingdom: Routledge. Hinman, L. (2007). Ethics: a pluralistic approach to moral theory. United States: Cengage Learning. Karake-Shalhoub, Z. (1999). Organizational downsizing, discrimination and corporate social responsibility. United States: Greenwood Publishing Group. Shaw, W. H. & Barry, V., & Sansbury, G. (2009). Moral issues in business. Australia: Cengage Learning Australia Pty Limited. Sears, E. A. (2008). The impact of downsizing on the long-term employees' self-concept. United States: ProQuest. Shata, O. (2013). Computer ethics: a practical approach towards solving ethical dilemmas. International Journal of Computer Applications, 65(10), 0975-8887. Read More