Raising Moral Principles in Business - Essay Example

1. If you were a board member, how would you vote Why If I was a board member, I would vote against Phyllis' proposal. I support one of the board members' arguments that the current board is empowered to change current policies as they see fit in light of changes in work conditions and to chart new directions which they have done, but the current board should not be held accountable for the policies, actions and decisions of previous boards. Moreover, I believe that businesses exist to generate profits and their existence is predicated on the ability of the business to make profits. "Profit is like oxygen to the business and a lifeline to all" (Kamath, 2007). Providing employment is a subordinate objective to the profit objective. If as one other board member said, the price of Phyllis' proposal will damage the company's profit picture, this eventuality would not only hurt the company but all its employees as well. 2. What moral principles are involved in this case Based on Fieser's Business Ethics (n.d.), the moral principles involved in the case are: Equal pay for work of equal value as it pertains to sex. Businesses should be fair in all their practices. Businesses should respect human rights. Employees have the right to air their grievances and should be given due process. Compliance with laws regarding employment. There are already existing laws regarding pay discrimination and these laws must be complied with. Accountability for past actions, policies and decisions. The board represents the business but it is a debatable question whether a current board should be accountable for actions of a previous board. Businesses should consider all stakeholders' interests if this may be affected by a business practice. Stakeholders include owners, employees, customers, suppliers and other groups affected by the business. 3. Do you think Phyllis Warren was unfair in taking advantage of the board's implied admission of salary discrimination on the basis of sex Why I do not think Phyllis Warren was unfair in taking advantage of the board's implied admission of salary discrimination on the basis of sex. She saw the opportunity present itself for her and other women employees to earn more than what they were currently receiving. Usually, employees will not have an exact profit picture about the companies they work for. If the company could well afford back pay to correct the discrimination practiced in the past, then Phyllis had the right to at least bring this to the board's attention. However, it is another issue if the board's decision should be for or against Phyllis proposal. The entire matter of accountability of the company for a previous board's policies and actions may have to be decided in a legal forum. Corporations and other institutions are increasingly being held accountable for their decisions, actions, behaviors and performance by a wide range of external and internal stakeholders - employees, customers, stockholders, media, government officials, capital markets, civic leadership, the judicial system, advocates and activists (G&A, 2007). 4. Do you think Phyllis was wrong in giving the board the impression that her proposal enjoyed broad support Why I think there are two answers to this question. From the point of view of persuasive communication, I do not think Phyllis was wrong in giving the board the impression that her proposal enjoyed broad support. Phyllis had gone to the board with an objective that she of course wanted to accomplish and giving the impression of broad support for her proposal was merely a tool she used in order to persuade the board to agree with it. An impression is a feeling retained as a consequence of experience (AHD, 2000). It may not be reality. However, from the point of view of sincerity both to the board and Phyllis' fellow women employees, I think Phyllis was wrong in creating the impression mentioned above, especially since she hinted that her group was prepared to pursue legal action. Considering that Phyllis actually did not have broad support for her proposal, this in turn implies that she will not have broad support for legal action. If the board decides to go against her proposal, and no legal action is pursued by the committee, this would affect Phyllis' credibility as an employee, as well as break the trust between the company's executives and the employees, thereby creating an unfavorable working relationship and environment. 5. If the board rejects the committee's request, do you think the committee ought to sue Give reasons. If the board rejects the committee's request, and since Phyllis already hinted that the committee is prepared to pursue legal action, I think, this eventuality may happen if there are no intervening actions from both the board and the committee. If the board rejects Phyllis' proposal, I would recommend the following course of action, prior to any decision about taking legal action: The committee should seriously look into the merits of their proposal. As it is, the only basis for their proposal is the implied admission of salary discrimination on the basis of sex. This discrimination has already been addressed by the board. The committee would need to check the legal basis for their proposal in holding the current board accountable for a past board's actions. The committee should confer with the affected employees before taking any further action. After all, the committee represents the employee group and should be voicing the sentiments of the group and not just those of individual committee members. The board and the committee should dialogue in order to more successfully address the issue. Such a dialogue will hopefully determine the degree of grievance felt by employees like Phyllis, and come up with alternative positive actions to address the grievance rather than fight it out in a legal battle which may be detrimental to both the company and the employees. The board should also seriously look into the company's accountability in the face of implied admission of pay discrimination in the past. There may be merits to Phyllis proposal or even to the committee's intended legal action. By carefully considering the accountability issue, the company will make better decisions regarding Phyllis' proposal. References Fieser, J. (n.d.). Business ethics. Retrieved 11 November 2008, from http://www.utm.edu/staff/jfieser/vita/research/Busbook.htm Governance & Accountability Insitute. (2007). Accountability: the key 21st century watchword. Retrieved 11 November 2008, from http://www.accountability-central.com/id=1528 Kamath, P. (2007). Ethical profit. Retrieved 11 November 2008, from http://www.businessgyan.com/content/view/808/460/ Read More