Ethical Dilemma in a Business Situation - Assignment Example

Ethical Dilemma Essay Part A: Ethical Dilemma Essay Ethical Dilemma In the present day competitive business environment, making ethical decision has emerged as one of the most important elements for managers and decision makers in the organization. It is also being considered with higher priority in various organizations by managers to deal with complexities. Ethical thinking is intensely connected with the human beings and it mostly affects the way in which the business organizations work (The Institute of Internal Auditors, 2014 In this regard, ethical dilemma has become a key factor affecting the managerial decisions within the organizations (Hellriegel & Slocum, 2010). Ethical dilemma is a situation in which an individual faces a conflict between two decisions in which following of one decision will lead to transgressing of the other. Correspondingly, the considered ethical dilemma in business situation is “a decision that requires a choice between rules” (Robinson, n.d.). In the business environment, ethics largely relates with making the appropriate choices. At times, it is found that there is no obvious particular right path and a manager or a decision maker is required to select the best possible action within the prevailing circumstances. With regard to the selected ethical dilemma, it can be stated that managers might face a quandary between two rules within an organisation which might be self-conflicting. In other words, the factor of moral consideration comes into play when the manager or an employee has to decide in between the two rules (Kendall Hunt Publishing, 2010). Ethical dilemma may arise in this regard as it at times becomes difficult for an individual especially in the managerial position or within the organizational hierarchy to decide between the right and the wrong. The choice between the two rules mainly creates issues within the organization. It is worth mentioning that in the organization an employee is under dilemma as to follow which rule, as he/she believes that following one rule may hamper the other rule in the organization. It is worth mentioning that such dilemma within the employee in the organization will definitely hamper the workflow (Grad, 2012). Such dilemma within the organization can greatly hamper the mission and vision of the organization as rules in the workplace generally govern organisational working process. Making judgement between the two may create an internal conflict within the employee as he/she might face a quandary to select the best possible option form him/herself amid the laid down rules in the workplace (Giannou, 2009). . Justification of Why It Is an Ethical Dilemma in a Business Situation Ethical dilemma in relation to the stated concern mainly reflects the priority in which the individual has to discriminate between the two forms of rules and has to decide as to which rule to be set on priority (Denhardt, 1988). It is worth mentioning that different forms of rules in the business organization create different attitudes towards employees and give rise to various issues and controversies. At present, in the global business purview, ethics is being considered as one of the important dimensions of the business organization (Ferrell et. al., 2014). Society and business are related to each other. This relation between the two can be well understood as business organizations are engaged in relation to have profit maximization. Subsequently, there is a set of implications that are to be followed as rules within the workplace to ascertain profit maximisation. At times, the self-conflicting rules require employees or managers to select either between good for themselves or good for the society or the organization (Trevino, 1992). It can be further noted that different companies have dissimilar working culture, and they have different rules and regulations. This kind of environment within the organization makes it difficult for the individual to distinguish between the two rules. The employee within the organization may find a situation in which he/she sees that their superior is doing something wrong. The employee is in dilemma to make choices between the two rules, whether to inform this to the higher authority or to just neglect it and carry out the work as usual. Correspondingly, in this scenario if in the workplace, a rule or policy of whistleblowing is in place then the employee might face a quandary in terms of selecting whether to go on that path or refrain from revealing the misdeed. The choices between the two create difficulties for an employee to combat such issues within the organization, to take certain steps towards the organization and come forward to combat for such issues. However, on the other hand, the employee feels that such steps may lead to complex issues and he/she might have to bear the consequences. Therefore, these perplexities act as a critical factor that justifies the concerned scenario to be an ethical dilemma (Hooker, 2008). In the recent years, ethics have emerged as a critical factor within the business as it sets the procedures and policies which are acceptable to both management and staffs in the organization. Within the laid down polices at times certain rules compel employees to choose between them in order to ensure that right action is taken. In the business situation within the corporate world, a number of rules set out often create complexities and dilemma amid the employees. This is because certain business decision related to implications might emerge accordingly (Dobrin, 2009). On the other hand, for many employers, it has become a challenge to have a workplace where excellent relationship persists between the individual employees. The challenges have become more complex for the managers to choose between the rules as to keep the particular employee or not within the organization in keeping with the issues of the individual employee which in turn can create an ethical dilemma (Menestrel, 2002; McAuliffe, 2005). Thus, it can be ascertain that within the business situation making a decision that requires a choice between rules often create complexities within the decision makers or individuals as there arise a question morally right or wrong path within the taken decisions. Besides, at times the self-conflicting rules make the employees to face a doubt regarding which path to take so that it is beneficial to both the employee and the organization as well. Ethical Solutions Proposed to This Dilemma Based on the foregoing analysis, it can be recommended that by looking into the foreseeable conflicts and dilemma within the organization, the employee or the decision maker has to select the rule or path of action that is best suited at that circumstance. The organization has to focus on building a set of workplace policies wherein it primarily focuses on the code of conducts along with maintaining business ethics so that choices between the rules does not create a moral conflict amid the employee. The organization should also integrate the policies into which the performance evaluation program should make the employees responsible for their actions and also make them aware about their roles and responsibilities towards the organization (Joachim & Joseph, n.d.). It will help them to maintain professional standards within the organization and facilitate them to take follow the justifiable rule so that any ethical dilemma can be alleviated. It is also the responsibility of the organization to make the employees to understand the virtue of ethical practices within their activities. It is worth mentioning that providing proper training to the employees within the business organization will help to mitigate ethical dilemma and will also guide them to take the decision when it comes to taking proper decision between the two rules or choices (Ehrich et al., n.d.). The ethical dilemma can be well handled by the organization if it makes a person to look over the issues persisting in the organization in relation to making the choices between the rules. The organization should also include a program to contact a person who has been allocated to handle such kind of the ethical dilemma in the organization (Smith, 2003). The strict rules and policies within the business organization can refrain the employees from taking affective steps towards making right decision. Thus, an ethical dilemma related to such proportion within the organization should be carefully handled. With regard to making an ethical solution, one should consult the employee and should handle the situation is such a way so that no unfair means will be indulged in judging the issues (Andersoa, 2000). It has been observed that ethical dilemmas within the organization greatly affect the stakeholders to make proper decisions. In the recent years, there has been an increase in demand on the manager and the business to behave ethically so as to conduct their business activities in an effective manner. Moreover, it is determined that a business seems to have higher concern related to the choice between the two rules. The organization believes that such ethical dilemma will greatly affect the management and it can be costly for the organization as well. Ethical rules and polices basically guide an individual to preserve the employee in the organization and society as a whole. Business ethics help in setting the standard of the way the business should be conducted (White, n.d.). Correspondingly, any unfair practices within the businesses can be handled by using various ethical approaches which will help the organization to weed out any employee who might create a bad reputation for the organisation. This in turn can facilitate the decision makers to make appropriate choices between rules where there are fewer complexities within the taken decisions (Andrews, 2000). Besides, it is necessary to pay attention towards the behaviour of the employee in the organization after hiring in order to defend the position of the organization. This will surely ensure the business to conduct their activities in the desired manner and will also help in mitigating the ethical dilemma in the operational activities (Volkmann & Berg, n.d.) Ethical standards basically describe the expectation which the employee and the business organization have to uphold regarding the code of conduct. Moreover, the behaviour of the employee and employer must be judged to remove the ethical dilemma because confusion within the business activities in terms of selecting the right path threatens the standard along with values of the organization to a great extent (Andolsen, 2006). Thus, a focus on making appropriate choice between rules is a commonplace ethical dilemma which affects the decision making in the workplace. It can be addressed by following the ethical approach towards the made judgements so that any undue situation can be averted and appropriate choice can be made. Part B: Portfolio of Evidence Contents Appendix A: The Ethical Leadership Debate In accordance with my understanding of character profile (1), I could identify that ethical behaviour of an organisation is determined by its top level executives. Ethical leadership can be attained by an organisation once the top level managers make good decisions and uses good set of rules. According to Thomas et al. (2004), the notion of ethical behaviour cannot be ignored as the ethical leadership of business executives determines the ethical conduct of employees in an organisation. It is considered that ethical leadership of an executive shifts an organisation from negative direction to positive direction as argued by Bluhm (2012). As per the evaluation of character profile (2), I could identify that Jan Edwards was involved in a programme for helping disadvantaged individuals in the Guatemalan region. It was apparent in the debate that employment plays a key role in inducing esteem, dependence and motivation within an individual. However, she was disappointed with the fact that graduates who were recruited in the program were more concerned about profitability. Thus, it is considered that educational institutions must take an initiative to encourage ethical leadership in their academic qualification process. According to Donlevy & Walker (2011), most of the educational institutions put emphasis on subjects for instance, organizational theory (OT); financial management (FM); human resources management (HRM); and public relations (PR). It is considered that these subjects are undeniably vital for graduates to work in an organisation. However, not much of consideration is given to the subject of ethics due to which these graduates are more inclined towards profitability and reaching greater heights in their career without being ethical (Donlevy & Walker, 2011). According to character profile (3), it was apparent that professionals have portrayed a bad image in terms of their ethical conduct with the press. It is conceived by Mei-Hua that ethical business behaviour can help an organisation to integrate ethical business leadership along with profitability. However, Mei-Hua has been engaged in an immoral business conduct through getting involved into tax avoidance schemes. This unethical conduct according to my perception jeopardises the corporate image and encourages fraudulent activities within an organisation. Fisher (2014) stated that tax avoidance along with usage of tax havens has become an integrated part of various businesses which has resulted in attracting public criticism and press attention. It has been further stated by Christensen and Murphy (2004) that the culture of tax avoidance within organisations can be effectually tackled through adopting certain strategies for tax planning along with long term sustainability. As argued by Peña (2014), Corporate Social Responsibility (CSR) must be linked with taxation policies in an organisation through analysing the broad spectrum of tax practices and creating certain obligations for tax avoidance. Similarly, after gaining an insight of character profile (4), I identified that Deshi Chen was disillusioned with the business ethics course in his university programme. He perceived that ethical leadership is all about stimulating success within an organisation through maximising profit. Chen assumed that ethical codes or principles of behaviour act as an obstacle for organisations to grow into a profitable venture. However, I personally believe that Chen’s perception about ethical leadership is completely immoral. According to Velentzas & Broni (2010), organisations must follow an ethical approach in their business operations in order to enhance its corporate image and achieve business success. Organisations must opt to be committed towards ethical business practice through formulating principles of business conduct. This will hence result in long-term business sustainability and corporate accountability of an organisation thereby inducing business success (Velentzas & Broni, 2010). Appendix B: The Seminar Case It was identified from the seminar one case study that Borries who was an account executive in an advertising agency faced an ethical dilemma. This ethical dilemma was rooted to the holiday Borries applied and the product launch anticipated by its advertising company. This scenario can be termed as an ethical dilemma as availing the holiday was quite important for Borries for maintaining his personal life and the new product launch was equally important for him in his professional life along with his company to attract further contracts. This in my personal opinion created a mental conflict within Borries concerning his ethical requirements as on one hand he had to cancel his holidays to suffice the company’s requirement of new product launch. On the other hand, he had to reject the manager’s proposal of working in the holiday he applied for, in order to maintain his personal life relationship with his girlfriend. Finally, he decided to cancel his holiday and work for the new product launch due to which he faced serious criticisms from his colleagues according to my understanding. This criticism was surrounded with Borries being called as coward and weak to jeopardize his personal life relationship and let his colleagues down. However, Borries later justified that his holiday cancellation was decided to balance both company’s and client’s requirement. As per the above mentioned ethical dilemma, it is proposed that Cognitive Moral Development (CMD) theory can be used by an individual in this particular situation. CMD can be referred to as moral reasoning at different levels that is applied by individuals to mitigate their ethical dilemmas. Lawrence Kohlberg developed this theory and advocated three levels of ethical development which include ‘Pre-conventional’, ‘Conventional’, and ‘Post-conventional’ (Crane & Matten, 2010; Goolsby & Hunt, 1992; Kohlberg, 1971). Pre-conventional. This is the first level of ethical reasoning wherein it is proposed that Borries at that situation should have judged the moralities of his action based upon its direct outcomes. I further believe that Borries must have taken the decision irrespective of its external consequences which would have ensured that his decision was ethical (Oberstar et al., 2006; McMahon, 2000; Kohlberg & Hersh, 1977). Conventional. At this stage Borries will have to take the decision considering society’s perspective and expectations. This stage is based upon the assumption that the decision made must be accepted by the society which will determine its correctness and wrongness. Therefore, I strongly believe that societal norms must be given utmost consideration while making a decision in a situation of ethical dilemma. This in turn will ensure that the decision made is adhered to the societal values and becomes completely appropriate (Oberstar et al., 2006; McMahon, 2000; Kohlberg & Hersh, 1977). Post-conventional. This is the last level in CMD theory as per which it is suggested that an individual must consider himself as a separate body from its society. Hence, I believe that at this stage Borries must consider his own principles as well as societal principles in order to ensure that the decision made is ethical in nature. Accordingly, I perceive that Borries through following these levels in ethical decision making might make a decision that is universally accepted as an ethical decision (Oberstar et al., 2006; McMahon, 2000; Kohlberg & Hersh, 1977). Utilitarian theory can also be proposed as an effective resolution for ethical dilemma being faced by Borries at that particular situation. It is suggested that Borries must balance his decision by reducing the harm of decision outcomes and increasing its benefits. I believe that Borries will have to analyse the impact of his decision on ethical dilemma from a broader spectrum and focus on making the decision that will be beneficial for most number of people surrounding him (Moreland, 2014; Cengage Learning, n.d.). On the whole, it can be asserted that either of the proposed theories will be beneficial for Borries in resolving his ethical dilemma. Appendix C: Interpersonal and Team-working skills The module primarily emphasises ethical leadership and its implication within an organisational success. In addition, the module also focuses on ethical dilemma encountered by an individual in an organisational context. This module helped in identifying my interpersonal skills wherein I could get a valuable insight on how ethical leadership or behaviour can help in inducing success within an organisation. I was able to use my decision making skills to analyse what kind of ethical behaviour is appropriate for an employee and its organisation as a whole. The module helped me to understand that ethical leadership within an individual plays a significant role in moving an organisation from a negative direction to a positive direction. Hence, I personally consider that the interpersonal skills helped me to interpret how ethical leadership and ethical business conduct can be used in solving a set of problems. Additionally, I could use my problem solving skills along with my team members to solve the ethical dilemma being presented in the case of the module. Different viewpoints of my team members were acknowledged in the module, who were able to share their experiences and knowledge regarding the module (Yancey et al., n.d.). Team-working skills were used to the maximum extent as each member was provided with a different role wherein the tasks were shared. I further consider that effective team work skills of every individual helped us in completing the module collaboratively. Working as a team we could focus on team performance instead of individual performance through which valued inputs were provided by each member in the team that subsequently resulted in balancing the entire module. Specially mentioning, this module played a key role in enhancing my interpersonal skills along with team work skills which can actually contribute towards my employment in future. 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