Business in Ethics: Relations between Employees in a Hierarchy - Case Study Example

Ethics in A Business Organization: Relations between employees in a hierarchy Case study: Derkins Engines and State: Date: Every business setting has those basic elements that express its values to its staff as well as other entities irrespective of the laws laid by the government or other regulatory laws. In fact, there are a number of elements that aim to establish an ethical culture and conduct for the personnel in an organization (Audi, 2008). Employees are expected to conduct themselves in a manner that portrays a good image to the society that has their potential customers. Some of these elements include a well written code of ethics plus standards, ethics training program for members of staff. Moreover, the element includes the administrators, provision of ethical situational counseling and advice and a well-defined confidential reporting strategy (Clark, 2003). Every administrator or leader would strive to enhance a conducive ethical atmosphere within the institution for a good business climate and culture. Derkins Engine Company is not exceptional. James, the leader of this company is encountered by sensitive ethical issues that touch on his employees. There is a need to address employees relations in the hierarchy. He has a role to establish a form of practice that would see a positive workplace ethics within Derkins Engines (Joseph, 2000). Borrowing from The Seven Step Model devised by Manuel Velasquez, we can identify and examine the nature of the ethical issues involved in this situation. One major ethical issue here is a lack of professionalism in the manner in which Serena conducts this situation while making a decision that would affect the whole firm both in the short run and the long run. She doesn’t see the need to work as a team and involve Clive, who is more experienced than her in making a decision. There is a need to address professional ethics that examines the morals and ethical principles that come up in any business setting and environment. There is a need to illuminate critical aspects of business behavior that happen to be significant to the conduct of staff members and entire organizations (Anon., 2008). James has to consider and reflect on the philosophy of Derkin’s Engines as a business and recall the principal purposes of his company. More so, we identify another ethical matter in this case. There is a lack of professional courtesy in the business environment (Oliver, 2014). Serena cannot address Clive in a socially tolerable manner. She engages in a loud and aggressive argument when she feels that her role in the company was unappreciated and probably not honored. We must agree that there lack a well-defined course of communication in the Derkins Engines Company. Clive, a very experienced member of staff, couldn’t come up with an amicable informed way of passing the information to Serena. He lets her leave and changes the strategy later. Serena is gutted and loses her head and addresses the matter unprofessionally. Another ethical perspective is the influence of leadership in an organization. Is agreed that leadership sets the tone for institutional management (Anon., n.d.). It dictates all the strategic decisions made by the company to establish a positive image both in the internal and the external publics. It has that direct influence on organizational symbolism, an aspect that reflects the culture of an organization, the language used by the staff members and how someone may conduct themselves and execute decisions within the organization. The theoretical approaches used by the leaders should center upon the values and ideals that the firm should embrace. Thus, it is how the management address issues that set the precedent for the subordinates. The leaders know that achieving the company values tends to be a continuous commitment of efficient communication, productive discussions and informed debates throughout all the departments of the company (Driscoll & Hoffman, 2002). We must agree that the matter at hand affects a number of stakeholders (Andrew Crane, 2007). Dirkins Engines is a company that is built around the personnel, the organization as a whole, the potential customers and the society in general. All these elements should integrate rationally, and all affairs should be addressed within the confines of highest ethics. There would be a need to understand the science of human conduct in relation to the world of work to achieve effective as well as sustainable performance for the Derkins Engines company. The stakeholders should always be treated equally as much as their contribution to the firm varies (Gioia, 1999). The decisions made by one shareholder affect all others differently. Leaders have a big role to play in order to set a good example to the stakeholders. Their ambitions should not hinder them from presenting their goals properly. There should be no prejudice towards some members of staff. The leaders do influence the stakeholders to acceptable ethical conduct. All stakeholders matter to the organization and James need the right skills to ensure that both Clive and Serena are given equal chances to put across their thoughts and feelings in this matter. It’s clear that Clive considered customers as vital stakeholders ahead of his colleague. He felt the need to ensure that delivery was done in time, and the customer’s loyalty would be assured. Serena, on the other hand, had put herself first, and we can see her priorities were inspired by her role in the company. Evaluating these ethical issues in would be paramount. For every business, ethical gaps occur, and it hardly happens when decision are vividly clear. They mostly happen when what is believed to be morally right is less clear (Anon., 2008). Naturally, almost all members of staff execute decisions that are not ethical and do things considered unethical from time to time. At such situations, individuals don’t regard their conduct as unethical and don’t even remember as being unethical. In fact, individuals are likely to be unethical in future even after correction. There is a thick line between how people think they will be ethical and what they actually engage. James would have to be keen to engage the expertise in the decisions to avoid chances of conflicting loyalties and mixed messages. Our evaluation is likely to suggest that Serena was not intentional, and probably her optimistic illusions about herself misled her. She felt she was right, and it was within her capacity to think so. When she was in the middle of the whole situation, she focused on other aspects of the matter at hand rather than on the aspect that makes her approach unethical. Her goal was to have a plan in place, probably as laid by the organization, and ended up unethical. We must agree that ethics and moral values that are dependent on dilemmas can be difficult to deal with especially when employees regard something as right or wrong based on their principles. Any business should be prepared to handle any potential conflicts that result from varied opinions and values at the workplace. Firstly, James would have to revisit the company’s philosophy, vision, and mission statement and stated code of conduct. He would have to see this as an intra-organization conflict and realize that such disputes are not healthy for his company. The dispute in question can hurt Serena’s morale, affect firm’s productivity and reduce the chances of the organization hiring and having to retain the best, gifted and competent members of staff. Serena and Clive might find difficulties focusing upon their duties and responsibilities, and the teamwork aspect would be affected. There could be incidences of absenteeism if the matter is not resolved soon. It is crucial to investigate what exactly inspired the two to behave so and come up with a suitable way of resolving the conflict. Mostly, indifferences between employees result from so much interdependence between departments. Thus, factor such as too much pressure from the management resulting to frustration, personality characteristics, and differences. In addition, this lead to personal preferences and different social classes (Jeffrey Schieberl, 2005). James has to establish the techniques to resolve this conflict. The most appropriate technique would be mediation. James would be in place of a neutral third party and would facilitate amicable and courteous discussion between Serena and Clive as they share their sentiments and concerns. James would insist on the use of appropriate language for clear professional communication so as to achieve viable solutions. James would have to understand the dispute better before implementation of any resolution measures. He will have to amass and weigh evidence, avoid bias and rationalization, look at available precedents and seek counsel if need be (Mooney, n.d.). James should finally establish the verdict or a resolution rather. He would have to lay emphasis of the staff members to work as a team and appreciate opinions from each other. They should be free to communicate easily between themselves and even with the upper management as efficient communication improves productivity and overall results. James would have to make the mission and vision of the business clear as the perpetual life of the business depend on that. It would be appropriate to create an open dialog that would allow the employees to air questions and comments and insist that new ideas are welcome (Jostle, n.d.). He should encourage information sharing through such platforms as emails and short message services. Clive would have done that to Clive about his last minute decision. Another alternative action would be the provision of training on workplace ethics to the members of staff (Mayhew, n.d.). This would give the workers an opportunity to learn on how to address and resolve conflicts amicably. Revising the employee handbook would be appropriate. This book should clearly state the rules and consequences that that come with misconduct in the future. Copies should be provided to the employees who should sign and state to have understood the firm’s code of ethics. There would need to establish and designate ombudsperson who would address concerns pertaining conflicts at workplace. An ethic hotline would come in handy where employees would share any “whistleblowing” information confidentially. All these measures would affect the stakeholders of Derkins Engines in one way, or another. There would be consequent reaction from Serena and others. They would be more alert and conscious in the future when making their decisions. There will be improved productivity if the ethics are adhered to. There would be improved connection and almost zero chances of conflict. The customers would be served diligently, and the goals of the firm would be achieved. There might be practical constraints while implementing all these. Cases of lack of cooperation from staff members would be common (Arthur, 2014). The idea of consequences that come with breaching the code of conduct might seem so harsh for them. The view might be negative, and the employees in Dirkins Engines would have to change their attitudes. Some might choose to quit, and the firm’s normal operations would be hampered. The management would have to communicate the benefits that come with a strict code of ethics to deal with such constraints. In conclusion, we must agree that conflicts in firms are common and ethical issues are part of an organization. The code of ethics in Dirkins Engines should be well stipulated and consequences that come with breaching them be communicated too. The Staff members have to work as a team, and the goals of the organization will become a reality. References Andrew Crane, D. M., 2007. Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. S.l.: Oxford University Press. Anon., 2008. Business Ethics. [Online] Available at: http://plato.stanford.edu [Accessed 27 November 2014]. Anon., 2008. Business Journal. [Online] Available at www.gallup.com/businessjournal/ [Accessed 27 11 2014]. Anon., n.d. [Online]. Arthur, L., 2014. Problems encountered while implementing organizational change. [Online] Available at: http://www.ehow.com [Accessed 27th Nov 2014]. Audi, R., 2008. Business Ethics and Ethical Business. S.l.: Oxford University Press. Clark, M. M. J. D. S., 2003. "Corporate ethics programs make a difference, but not the only difference." HR Magazine, p. 36. Driscoll, D.-M. & Hoffman, M., 2002. Ethics Matter: How to Implement Values-driven Management. Chicago: Bentley College Center for Business Ethics. Gioia, D., 1999. Practicability, Paradigms, and Problems in Stakeholder Theorizing: Academy of Management Review. The Academy of Management Review, 24(2), pp. 228-232. Jeffrey Schieberl, J., 2005. Resolving Intra-Organization Conflicts. [Online] Available at: http://gbr.pepperdine.edu [Accessed 27 November 2014]. Joseph, J., 2000. Ethics in the workplace. [Online] Available at: www.asaecenter.org [Accessed 26 November 2014]. Jostle, n.d. Ways to improve internal communication in a company. [Online] Available at: http://www.jostle.me [Accessed 27 11 2014]. Mayhew, R., n.d. How to handle ethical issues in the workplace. [Online] Available at: http://smallbusiness.chron.com [Accessed 27 11 2014]. Mooney, L., n.d. How to handle ethical problems as a C.E.O. [Online] Available at: http://smallbusiness.chron.com [Accessed 27 November 2014]. Oliver, D. A., 2014. Mantra Leadership. New York: Xlibris Corporation. Read More