Ethical Theories Play a Very Important Role in Transforming an Organisation - Case Study Example

BUSINESS ETHICS Name Class Unit Introduction Ethical theories play a very important role in transforming an organisation. Through use of ethical perspectives, it becomes possible to look at an ethical dilemma critically and help us in making decisions.1 Through morality, one is able to decide on things to do and what not to do. People are held morally responsible for their actions which make it vital to make ethical choices when faced with a dilemma.2 This leads to various ethical perspectives aimed at determining right and wrong. This case study analysis will compare and contrast utilitarian, libertarian, deontological and virtue ethics perspectives on the dilemma identified. The analysis will then explain and justify ethical perspectives that best fits the situation. Ethical dilemma in the case study The case study involves Bob Carlton who is the CEO of OptiMotors. Galen McDowell who heads the sales department has been one of the most successful workers at OptiMotors. 3He had been able to help the company sign several deals since he joined the sales team as their head. The main issue arises due to methods used by Galen to win clients and close deals. He had been taking clients to strip clubs to seal deals. This makes Bob worried since inviting prospects to Red Ruby club may bring problems to the company. Habit of taking prospective clients has led to April who is one of the most hardworking employees to leave. Joan feels discriminated as a female employee since Galen objects having her in deals made at the strip club. Joan may sue the company for discrimination. Bob is in a dilemma because he believes that Galen has been very successful in bringing attracting new clients and closing deals. But at the same time, his ways of closing deals exposes the company to major threats. Should he continue allowing Galen to take clients to strip club? Comparison and contrast of utilitarian, libertarian, deontological and virtue ethics perspectives on the dilemma When making a major decision, most people looks at both advantages and disadvantages associated with it. This requires one to come up with mental pictures of positives and negatives of the decision being made. Utilitarianism is based on making an ethical choice according to the consequences.4 The best decision being made should have the most merits than demerits. The merits should be for the largest number of people. In this dilemma, the decision made by bob based on Unitarianism should have more advantages than disadvantages to the largest group of people at OptiMotors. In this case, it refers to doing well to the largest number of people. It is what is best in a specific case. For Bob to make a utilitarianism decision, he has to look at both long and short term consequences. This involves looking at whether the immediate benefits of the decision made are capable of outweighing future costs. In this case, it will involve looking at both positive and negatives of going to a strip club to make deals. This is based on whether the action leads to happiness to the largest group of people. Advantages that have been associated with attending a strip club to make deals are; winning deals, Galen being able to get bonus and OptiMotors making more business. The action also makes Galen happy. The disadvantages of going to strip club to make deals are; legal issues, potential of damaging OptiMotors image, discrimination and some employees quitting. The action makes both Joan and April unhappy. This can be explained using a table. Action Advantages Disadvantages Going to strip club to make deals Winning deals Legal issues-Joan may sue the company. Galen gains bonus Discrimination More business for OptiMotors Potential of damaging organisation image Employees quitting Galen is happy Joan and April are unhappy Fig.1, Utilitarianism in the dilemma Based on utilitarianism, the decision being made should make the majority happy.5 Also, main emphasis is on the ration that exists between harm to evil compared to happiness or unhappiness of the choice. To make a choice using utilitarianism, Bob have to use three step processes. The first step involves identifying all course of action, determine direct and indirect costs involved in each option and finally come up with the best solution that is capable of bringing the most of good based on cots benefit analysis.6 Deontological theories are duty based. This is associated with obedience of the absolute moral values. According to this perspective, one is supposed to do what is morally right and uphold rule or law.7 An action rightness or wrongness is based independently of its consequences. According to deontologists, the rightness or wrongness of an action is not based on its outcomes, pain or pleasure.8 Thus, morality is only based on whether the act conflicts with moral rules or not. An act can only be good if one does it with an aim of complying with the rule or obeying a duty. In this case, through strip case is not against the law, one have to consider whether it is the right thing to do according to duty. Bob duty as the head of the company is to train the staff, lead them and come up with policies. Thus, in making decision whether to continue using, Galen method of winning clients, he has to look whether the decision is against his duties. He has to consider whether winning business deals through strip clubs is morally right. According to deontological perspective, winning the consumers using this method is morally wrong. It’s against his morals and company rules. According to deontological view, continuous use of strip clubs to win deals violates an absolute moral rule.9 Virtue based moral systems are more concerned with community than individual. Virtue refers to anything that is good. It’s the excellence that is exhibited by the human behaviour.10 The main focus of virtue is character development which is carried out in a harmonious community. Using virtue based ethics, one have to differentiate good and bad behaviour. Human beings are supposed to be governed by the moral principles. According to virtue ethics perspective, it’s in ones disposition to ensure that they live a virtuous life.11 This means that making a decision in this case will require bob to act with best interest to the community. The decisions being made using virtue ethics will be determined by qualities such as personal integrity, fairness and loyalty. Characteristics of a person play a major role. Libertarianism looks at the relationship that exists between liberty and morality. 12This implies that social restraints that are placed on ones choice are reduced. Despite the individual freedom, there is a requirement to take care for social welfare. When one makes a decision, they have to make sure that it does not affect other people freedom. In this case, despite the fact that business is free, there are also other freedoms. This implies that Galen can use business to take people to the strip club, but there are other freedoms. Other freedoms include freedom from discrimination and freedom to work uninterrupted. Joan is discriminated when business freedom is used and April is not free to do her job as a female. Fig.2, Ethical paths According to utilitarianism, human beings are self interested and will always look for solutions that minimise their pains and maximise pleasure.13 This implies that the decision being made by Bob should lead to the greatest pleasure based on circumstances. Deontologists are more concerned with the concept of duty. They are keener to do what is morally right irrespective it makes people happy or not. Hence deontology and Unitarianism holds differing views on the best ethical theory. 14For the virtue ethics, the decision made is based on natural disposition to have a virtuous life. Fig.3, Ethical theories Identification, explanation and justification of ethical perspectives that will work best in the situation In this case deontological and libertarianism ethical perspectives can be used in coming up with a decision in the dilemma. Bob have to consider his duty to organisation and moral implications of Galen actions when coming up with the final decision.15 Galen tactic to win deals does more damage to company and corrupt organisation morals. The organisation morals and values are eroded by this practice. This is against deontological theory which upholds doing what is morally right. Using deontological perspective, Bob have a duty to ensure that he upholds what is morally right. 16Wining deals through strip clubs is morally wrong. The method acts as a distraction from coming up with sustainable marketing which OptiMotors can benefit from. Bob have to prove that he cannot go against his morals. This is what has been displayed by April who opted to leave the company rather than compromise her morals. This is according to deontological theory which advocates for doing what is morally right. He is supposed to do what is morally right without regard whether it will hurt Galen or not. Bob have a duty to ensure employees’ freedoms are not violated. 17This implies he have to ensure business is conducted in a way that does not affect employees rights. Joan is discriminated by Galen activities of taking clients to the strip club. Her moral principals are violated as she cannot practice fair dealing and good faith.18 Bob have to act to ensure that he ends discrimination in his company. This cannot be done with Galen on board. Using libertarianism ethical perspective, business freedom should not interfere with employees’ freedom. Also, Galen rights are not supposed to interfere with freedom of other employees. Rights and freedoms must be respected and not interfered with. Both Joan and April have legitimate rights to conduct business at OptiMotors without being restricted. This implies that though doing business in a strip club is not against the law the practice should not affect some workers freedom19. Galen freedom to conduct deals in strip club violates Joan and April rights. Joan discrimination arises due to this practice. By upholding this perspective, conducting business in the strip club has to cease so that everyone is able to enjoy their freedom. Conclusion Using the three ethical perspectives, Bob can make a decision that will help the business from imminent danger. Galen is not ready to change his ways of making deals hence Bob must act to restore the company values. Based on the analysis, taking clients to Red ruby club is wrong and unnecessary. The method puts Bob and his company at ransom. Making sales through use of strip club or male bonding does not have a positive effect on value that OptiMotors provides to its customers. In this case OptiMotors risks having their image damaged by Galen practice. He has to look at what would happen in case their customers knew how they are closing their deals. Once a company image is damaged, it takes long time to build it. There are also risks of losing employees as seen in the case of April. Joan can also sue the company for discrimination. He may be forced to sack Galen after informing the shareholders. This is due to fact that shareholders are the one who will be hurt most in case a lawsuit is filed. Terminating Galen contract is the first step towards restoring OptiMotors values. He can depend on David Reed since he had been one of the top salesperson. After doing damage control, it will be possible to call April back to be part of the process. Bibliography Derry, Robbin, and Ronald M. Green. "Ethical theory in business ethics: A critical assessment." Journal of Business Ethics 8, no. 7 (1989): 521-533. Dreier, James, ed. Contemporary debates in moral theory. John Wiley & Sons, 2009: 39-60 Garcia, Domenic. "Kant’s Respect for the Law and Habermas’s Redemption as a Source of Freedom?." Philosophy Study (2014): 216. Harbison, Warren G. "The Good Will." Kant-Studien 71, no. 1-4 (1980): 47-59. Kant, Immanuel. "The Doctrine of Virtue, trans." MJ Gregor. Philadelphia: University of Pennsylvania (1964):35-60. McBeath, Graham, and Stephen A. Webb. "Virtue ethics and social work: Being lucky, realistic, and not doing ones duty." British Journal of Social Work 32, no. 8 (2002): 1015-1036. Mobley, Mary Edie, John Humphreys, J. Brown, K. Frank, D. Narayandas, and D. Rousseau. "How Low Will You Go?." harvard business review 84, no. 4 (2006): 33. Sande, Peter, Karsten Klint Jensen, and Per Pinstrup-Andersen. "Concluding reflections on the role of ethics." In Ethics, Hunger and Globalization, pp. 305-321. Springer Netherlands, 2007. Trigg, Roger. Morality matters. John Wiley & Sons, 2008:35-61. Whittier, Nathan C., Scott Williams, and Todd C. Dewett. "Evaluating ethical decision-making models: a review and application." Society and Business Review 1, no. 3 (2006): 235-247. Read More

For Bob to make a utilitarianism decision, he has to look at both long and short term consequences. This involves looking at whether the immediate benefits of the decision made are capable of outweighing future costs. In this case, it will involve looking at both positive and negatives of going to a strip club to make deals. This is based on whether the action leads to happiness to the largest group of people. Advantages that have been associated with attending a strip club to make deals are; winning deals, Galen being able to get bonus and OptiMotors making more business.

The action also makes Galen happy. The disadvantages of going to strip club to make deals are; legal issues, potential of damaging OptiMotors image, discrimination and some employees quitting. The action makes both Joan and April unhappy. This can be explained using a table. Action Advantages Disadvantages Going to strip club to make deals Winning deals Legal issues-Joan may sue the company. Galen gains bonus Discrimination More business for OptiMotors Potential of damaging organisation image Employees quitting Galen is happy Joan and April are unhappy Fig.

1, Utilitarianism in the dilemma Based on utilitarianism, the decision being made should make the majority happy.5 Also, main emphasis is on the ration that exists between harm to evil compared to happiness or unhappiness of the choice. To make a choice using utilitarianism, Bob have to use three step processes. The first step involves identifying all course of action, determine direct and indirect costs involved in each option and finally come up with the best solution that is capable of bringing the most of good based on cots benefit analysis.

6 Deontological theories are duty based. This is associated with obedience of the absolute moral values. According to this perspective, one is supposed to do what is morally right and uphold rule or law.7 An action rightness or wrongness is based independently of its consequences. According to deontologists, the rightness or wrongness of an action is not based on its outcomes, pain or pleasure.8 Thus, morality is only based on whether the act conflicts with moral rules or not. An act can only be good if one does it with an aim of complying with the rule or obeying a duty.

In this case, through strip case is not against the law, one have to consider whether it is the right thing to do according to duty. Bob duty as the head of the company is to train the staff, lead them and come up with policies. Thus, in making decision whether to continue using, Galen method of winning clients, he has to look whether the decision is against his duties. He has to consider whether winning business deals through strip clubs is morally right. According to deontological perspective, winning the consumers using this method is morally wrong.

It’s against his morals and company rules. According to deontological view, continuous use of strip clubs to win deals violates an absolute moral rule.9 Virtue based moral systems are more concerned with community than individual. Virtue refers to anything that is good. It’s the excellence that is exhibited by the human behaviour.10 The main focus of virtue is character development which is carried out in a harmonious community. Using virtue based ethics, one have to differentiate good and bad behaviour.

Human beings are supposed to be governed by the moral principles. According to virtue ethics perspective, it’s in ones disposition to ensure that they live a virtuous life.11 This means that making a decision in this case will require bob to act with best interest to the community. The decisions being made using virtue ethics will be determined by qualities such as personal integrity, fairness and loyalty. Characteristics of a person play a major role. Libertarianism looks at the relationship that exists between liberty and morality.

12This implies that social restraints that are placed on ones choice are reduced. Despite the individual freedom, there is a requirement to take care for social welfare.

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