The Main Ethical Dilemma in the - Case Study Example

Assignment on HBR case study-Ethics Task: To read a case study and answer Questions in an essay format Student’s Name: Course Code: Date of Submission: Introduction Ethics is the laid down moral standards within a group that are looked upon in decision making. Some of these standards need not to be laid down, sometimes they are implied. Ethics consists of the numerous options that are not necessarily connected to official sanctions. It concerned more with “what we should do” rather than “what we must do”. Ethical choices are not prescribed to us by the government or law but rather they involve engaging our minds critically in an attempting to bring reason and emotion to take control in a particular situation (Halbert and Ingulli 2010). This essay will look at the various ethical perspectives in answering case study questions. 1. The Main Ethical Dilemma(S) in the Case Study An ethical dilemma is an intricate situation that presents a mental conflict between moral perspectives, in that if one decides to stick to one perspective it results in stepping on the other. An individual is faced with conflicting tenets of ethical behaviour because there isn’t any existence of a clear directive on how to react and handle a situation whenever it represents itself (Ahmad, Ansari and Aafaqi 2005). Figure 1-an ethical dilemma courtesy of the realsasha.wordpress.com In this case study there are various scenarios where conflicting ethical perspectives are noted. The first instance is an ethical dilemma that of conflict of interest where OptiMotors industries used not so morally right ways to entice Kinan Motors executives in signing a business deal with them. The OptiMotors management knew that taking the Kinan Motors people to a strip club could make them sign business deals with them. And if they did not do this then they could easily lose a business deal and on the other hand, they knew that taking potential partners in the business to a strip club in order to seal a business deal was unethical but they still went ahead and did this because of the money (Mobley and Humpreys 2006). In making the decision, the OptiMotors management looked at what the Kinan Motors people would prefer without censuring their moral character. So long as utility was achieved, ways of achieving those results was not of moral consideration (Pick 2015). It is also evident from the case study that OptiMotors had to take people from the Blain Racing Company to the strip club in order to convince them to start doing business with them. And that worked just right for the good of the company (Mobley and Humpreys 2006). The OptiMotors believe that their business clients get to enjoy the sights at the strip club and in return they also benefit by being accorded a business contract. They see it as morally right because many people in the society get to benefit (Mayer et al. 2012). The CEO of OptiMotors Bob Carlton is also faced with another dilemma of transparency. When the Kinan Motors signed a multi-million dollar contract with OptiMotors Industries, in reporting the good news to the company staff Bob was to either tell the truth about what they did in order to get the contract with Kinan Motors or lie. He in fact chose the latter, he lied that acquiring the deal just came down to the hard work and the quality of their products and services (Mobley and Humpreys 2006). Bob chose not to be transparent in his reporting on how the sale was made to Kinan Motors. April is one of the OptiMotors employees who is part of the sales team. In the case study, she also encounters an ethical dilemma in which the head of the sales team required her to go even into doing the unthinkable in order to nub the big fish into the business fold of OptiMotors Industries. Galen the head of the sales department recommended to April that in order to land the big accounts she needs to give such account holders more exciting staff. But April looked the other way round and decided that she will not give up her moral ethics in order to get clients doing business with OptiMotors. Contrary to what April did, Joan Warren decided to agree to the perspective of getting clients to do business with OptiMotors at whatever cost even agreeing to accompanying the potential clientele to the Red Ruby strip club. But the experience she had in the strip club made her to quit (Mobley and Humpreys 2006). Bob Carlton is also based with another dilemma whether to clean house by letting Galen go because he was the one who introduced the strip club idea of tying customers but then he played a role by supporting the same idea. Joan Warren is also at a cross roads whether to sue the company for the experience it put her through or to just let it go. 2. Compare and contrast the utilitarian, libertarian, deontological and virtue ethics perspectives on the dilemma(s) In this case study the various ethics perspectives that are utilitarian, libertarian, deontological and virtue emerge. Utilitarian perspective also known as the greatest happiness principle sees actions to be morally right if they enhance happiness and wrong if they promote unhappiness. In this case the moral value of an action is ascertained by its usefulness (Schuman 2001). In this case study that is evident where Galen takes potential customers to strip clubs in order for them to sign business deals with OptiMotors. In this perspective the act of taking people from Kinan Motors and Blain Racing to the strip club is seen to be right because at the end of the day it proved worth because these people signed contracts with OptiMotors. They focussed on the results not on the means of achieving those results (Schuman 2001). On the other hand the deontological ethical perspective developed by Immanuel Kant which is also referred to as the duty or obligation perspective has a contrary opinion to that of utilitarian perspective on what constitutes an ethical action. Whereas utilitarian judges an action to be ethical on the good it produces to society with no regard to the means of achieving that good, deontology looks at the intention of the action as making it right ethically and not the results of the action (Bowie 2002). This perspective is inclined to making a decision to act because it is the right thing to do but not because of the usefulness of the action (Alder etal. 2008). The actions must be morally right in themselves and not just a means of getting to a good end (Pick 2015). In this case study April decides to use this approach in making her decision of not giving in to potential customers’ needs of exciting stuff in order for them to do business with OptiMotors. She looked at the means of achieving that business deal for the company and realized that it was not right and it is her duty to uphold what is universally considered to be right. She was duty bound to protect the good in society. It was her duty to act in accordance to some rules and principles. So as opposed to the utilitarian view, deontologists view the action as an end rather than the means. Figure 2- ethical perspectives courtesy of www.trinity.edu There is also the perspective of ethics from the libertarian view which puts more emphasis on freedoms. That people should be free to make their own choices without any restrictions. In this case liberty is of more importance than moral concerns (Shaw 2010). Each person should be left to make their own choices provided they don’t interfere with the freedoms of others either by coercing them. Contrary to the utilitarian perspective which will restrict personal freedoms and choices in order to achieve greater happiness for many in the society, libertarian does not share the same tenet. This view stresses on the freedom of people in doing what they want and making the choices they deem right so long as they respect the rights of others to do the same. The government’s only role is to provide security and maintain the peace and the markets operate without control in any way (Pick 2015). In this case study the guys from Kinan Motors and those from Blain Racing were free in making their own choices of discussing business deals with OptiMotors in strip clubs without fear of being condemned. The OptiMotors management used this perspective in agreeing to make such a choice of hosting their potential customers in the strip clubs. Joan also made her decision to accompany the potential OptiMotors customers to the strip club on her own free will without being coerced (Mobley and Humpreys 2006). In the same respect those who are stripping in those clubs they were free in making their own decisions and choices in engaging in the stripping business and those who decide to go watch people to strip are free to do so long as they do not trample on the rights of others. Virtue ethics also stands out in this case study. This perspective is also referred to as Aristotle’s moral theory. It emphasizes on virtues rather than formal rules and results. A decision to act is considered to be morally right if it is done virtuously by a virtuous person. It advocates the application of reason in making decisions to act. It stresses on the relevance of subscribing to a set of accepted virtues of morality and when one unceasingly looks upon these moral virtues as guidelines in making decisions that person eventually becomes ethical (Bobson 2007). This perspective rather than focussing on monetary gains and how many people benefit from an action it actually puts more focus on the moral character of the person carrying out the action and the ability of that particular person to adhere to accepted virtues of character. One should be able to engage in sound moral judgement once in contact with an ethical dilemma (Bobson 2007). In this case study April when asked by Galen to give potential customers even the ‘exciting stuff’ in order to entice them into doing business with them, she is guided by moral virtues to decline that offer of enticing the big account holders and she even decides to quit her job. In her own right enticing potential customers in a strip club is not morally right, even if it means acquiring a business deal. Joan after deciding to accompany the potential customers to the strip club made her go through an unforgettable experience which she considers was not ethically virtuous. Because of the guilty feeling with herself for having let down her moral virtues and in trying to make amends to her mistakes of going through something which is not virtuously right she decides to quit OptiMotors in order to make peace with her mind. She might even be contemplating suing OptiMotors for making her go through the experience (Mobley and Humpreys). 3. An Ethical Perspective that you think will work best in the situation In this case scenario the ethical perspectives which could suit these types of dilemmas is the deontological and virtue perspectives. As earlier noted, deontological view classifies something to be morally right if it is done by following a set of rules which are intrinsic. In this perspective, one is seen to be morally wrong if she or he does something to intentionally lie or harm somebody. It is somebody’s duty to desist from harming or lying to somebody knowingly. In this case study in addressing the dilemmas the OptiMotors can utilise this view in making business decisions that are right in their own right that is they categorically imperative. The OptiMotors shouldn’t have entertained the idea of closing business deals in strip clubs. Because this perspective requires that business decisions and actions have to subscribe to certain principles and it is the duty of business entities to hold onto them (Pick 2015). Had they used this ethical perspective in coming up with business decisions they would have avoided the crisis they are going through at the moment; the crisis of employees quitting and even the possibility of some of them seeking legal redress against OptiMotors. Another perspective which would have been beneficial to OptiMotors and still be beneficial to them is the virtue perspective where decisions go through a virtuous sieve before being implemented. Decisions are implemented once they deemed to help propagate a good society for all. What is good for the entire society and not for only individual entities should be what informs decisions of business. This perspective encourages continuous discussions of what is good for the entire society (Bobson 2007). The virtuous perspective could have helped OptiMotors to navigate through the dilemma of engaging in business activities in sleazy clubs. Conclusion In conclusion, with the staggering interest on ethics in society, it is imperative that ethical reasoning be part of decision making in our businesses. It is thus essential that managers, employees and business professionals to comprehend the foundation of making ethical decisions especially when faced with ethical dilemmas. References Ahmad, Noor Hazlina, Ansari, Mahfooz, and Aafaqi, Rehana. “Ethical Reasoning: The Impact of Ethical Dilemma, Egoism and Belief in Just World.” Journal of Asian Academy of Management 10, no. 2 (2005). Bowie, Norman. A Kantian Approach to Business Ethics: Companion to Business Ethics. UK: Blackwell, 2002. Dobson, Job. “Applying Virtue Ethics to Business: The agent based Approach.” Journal of Business Ethics and Organization Studies 12, no. 2 (2007) Pick, David. Business Ethics: Course Instructional Slides. 2015 Mayer, Don, Warner, Daniel, Siedel, George and Lieberman. Legal Aspects of Property, Estate Planning and Insurance. 2012. Accessed March 18. 2015. http://2012books.lardbucket.org/pdfs/legal-aspects-of-property-estate-planning-and- insurance.pdf Halbert, Terry and Ingulli, Elaine. Law and Ethics in the Business Environment. Mason USA. Cengage Learning, 2010. Shaw, William. Business Ethics: A Textbook with Cases. Boston MA. Cengage Learning, 2010 Schumann, P. A Moral Principles Framework for Human Resource Management Ethics. Human Resource Management Review, 11, 2001. Alder, .S., Schminke, M., Noel, W., and Kuenzi, M. “Employee Reactions to Internet Monitoring: The Moderating Role of Ethical Orientation.” Journal of Business Ethics, 80, 2008. Mobley, Mary and Humpreys, John. How Low Will You Go? Harvard Business Review, 2006 Read More

And that worked just right for the good of the company (Mobley and Humpreys 2006). The OptiMotors believe that their business clients get to enjoy the sights at the strip club and in return they also benefit by being accorded a business contract. They see it as morally right because many people in the society get to benefit (Mayer et al. 2012). The CEO of OptiMotors Bob Carlton is also faced with another dilemma of transparency. When the Kinan Motors signed a multi-million dollar contract with OptiMotors Industries, in reporting the good news to the company staff Bob was to either tell the truth about what they did in order to get the contract with Kinan Motors or lie.

He in fact chose the latter, he lied that acquiring the deal just came down to the hard work and the quality of their products and services (Mobley and Humpreys 2006). Bob chose not to be transparent in his reporting on how the sale was made to Kinan Motors. April is one of the OptiMotors employees who is part of the sales team. In the case study, she also encounters an ethical dilemma in which the head of the sales team required her to go even into doing the unthinkable in order to nub the big fish into the business fold of OptiMotors Industries.

Galen the head of the sales department recommended to April that in order to land the big accounts she needs to give such account holders more exciting staff. But April looked the other way round and decided that she will not give up her moral ethics in order to get clients doing business with OptiMotors. Contrary to what April did, Joan Warren decided to agree to the perspective of getting clients to do business with OptiMotors at whatever cost even agreeing to accompanying the potential clientele to the Red Ruby strip club.

But the experience she had in the strip club made her to quit (Mobley and Humpreys 2006). Bob Carlton is also based with another dilemma whether to clean house by letting Galen go because he was the one who introduced the strip club idea of tying customers but then he played a role by supporting the same idea. Joan Warren is also at a cross roads whether to sue the company for the experience it put her through or to just let it go. 2. Compare and contrast the utilitarian, libertarian, deontological and virtue ethics perspectives on the dilemma(s) In this case study the various ethics perspectives that are utilitarian, libertarian, deontological and virtue emerge.

Utilitarian perspective also known as the greatest happiness principle sees actions to be morally right if they enhance happiness and wrong if they promote unhappiness. In this case the moral value of an action is ascertained by its usefulness (Schuman 2001). In this case study that is evident where Galen takes potential customers to strip clubs in order for them to sign business deals with OptiMotors. In this perspective the act of taking people from Kinan Motors and Blain Racing to the strip club is seen to be right because at the end of the day it proved worth because these people signed contracts with OptiMotors.

They focussed on the results not on the means of achieving those results (Schuman 2001). On the other hand the deontological ethical perspective developed by Immanuel Kant which is also referred to as the duty or obligation perspective has a contrary opinion to that of utilitarian perspective on what constitutes an ethical action. Whereas utilitarian judges an action to be ethical on the good it produces to society with no regard to the means of achieving that good, deontology looks at the intention of the action as making it right ethically and not the results of the action (Bowie 2002).

This perspective is inclined to making a decision to act because it is the right thing to do but not because of the usefulness of the action (Alder etal. 2008). The actions must be morally right in themselves and not just a means of getting to a good end (Pick 2015). In this case study April decides to use this approach in making her decision of not giving in to potential customers’ needs of exciting stuff in order for them to do business with OptiMotors.

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