Ethical Theories as Guiding Principles for Decision Making - Case Study Example

Assignment 4: Business Law and Ethics Four Ethical Theories Introduction Ethics, like preference, may be considered a product of values. To some, the suggestion that an orderly and analytical process of decision making, not only on a personal level – but more so in business, should include the discussion of highly controversial ethical issues, about which honest differences of opinion are common and self-deceiving rationalization endless, is repugnant. Ethics, after all, encompass wider perspectives of human concerns ultimately affecting business organizations. Ethics has found its meaning in man’s inquiry on moral behavior seeking to find rules and principles that humans must adhere to ensure systematic order and universal good to prevail. In this regard, this essay is written to evaluate a particular case on business law and ethics, specifically delving into four ethical theories in the process: utilitarianism, the Golden Rule, Kant’s categorical imperative and virtue ethics. The discourse would begin with a summary of the case facts and proceed into a discussion of the ethical issues. The essay would progress into an enumeration of the affected parties before closely evaluating the case facts using the four ethical theories abovementioned. The recommendation would take into consideration relevant ethical contexts and critical thinking and analytical skills applicable in the given scenario and would be presented in the form of consequences and obligations, as required. Facts of the Case Case facts reveal that Pat, a plant manager in one of ABC Company’s five plants has been employed with the company for 15 years. She has earned the trust of her boss as manifested by revealing in confidence about the lay-off plans involving 200 workers. In this given situation, an old friend of Pat tried to confirm the veracity of the rumor circulating in the plant. Ethical Issues Given the facts of the case, the ethical issues that Pat must take into consideration are itemized below: (1) due to the confidentiality of the information accorded to Pat, she is in a quandary as to reveal the truth about the layoff; (2) as an employee who had earned the trust of management, Pat is indebted to the company for sending her to college; thereby, the personal traits of honesty and integrity, in concurrence with abiding with policies of confidentiality, are hereby critical in the decision making process; (3) an old friend relies on Pat to give her the right information regarding the rumor of laying off 200 personnel; Pat is therefore bewildered as her loyalty and trust is hereby tested. The Affected Parties It is critical to identify in an ethical scenario the affected parties of the case: (1) Pat is first and foremost the primary party affected by the ethical issue in the capacity of an employee and as a friend; (2) the Boss, as representative of management, is also affected in terms to confiding to Pat the confidential information and trusted her to retain its secrecy; (3) the old friend of Pat is another affected party considering that she needs to solicit the correct and reliable information which she know could be solicited from Pat; and (4) the potential workers numbering at least 200 that could possible be laid off. Analysis through Ethical Theories Utilitarianism The case calls for arriving at an appropriate decision using four ethical theories, to wit: utilitarianism, the Golden Rule, Kant’s categorical imperative and virtue ethics. The utilitarian theory stresses the need to select a particular action which will ultimately result in the greatest good for the greatest number of people. The theory emphasizes the interests of others more than one’s personal interests. (Utilitarian Theories, 2002) The ethical principle stipulates that decisions involving appropriate actions for the promotion of happiness are consistent with the utilitarian approach. There are two critical types of utilitarianism depending on a particular actions or general rules. The act utilitarianism examines a particular action in a given situation. Applying this theory in Pat’s case, it is evident that by disclosing the information of the lay-off to the rest of the 200 workers, the particular decision would benefit a greater number of people and thereby promote the greatest good. The other type of utilitarianism, the rule utilitarianism determines the validity of the moral principles or rules of conduct. The rule in this case is Pat’s ethical dilemma of keeping her promise of confidentiality to her boss. The greater number of people here is the universality of the rule in which promises are kept and considered binding. The most appropriate decision is to keep the promise by not divulging any information on the lay off as it is the right action bearing moral theoretical concepts. Breaking it would have greater repercussions in the world, in general, which is of greater number than the 200 employees at stake. Scholars who promoted the ethical concept of utilitarianism contend that promises should never be broken for the reason that there is greater good in the keeping the secret as compared to the repercussions of breaking it. By keeping the promise, the element of trust and confidence is strengthened and maintained. If one opts to break one’s promise to anyone, in particular, the trust and confidence accorded would be weakened and thereby reverberate to others. No one would eventually trust the confidentiality of the secret in the future. The Golden Rule The ethical theory of the golden rule is manifested in the concept of reciprocity or treating others as you want others to treat you. The rule is more commonly manifested in the motto “what you do not want for yourself, do not do unto others” which is not only a good motto, but an absolute guiding rule encompassing diverse religious and philosophical beliefs of different people all over the world. It actually means one’s actions and behavior should be made after putting oneself in the shoes of another. According to Gensler (n.d., par. 3), for the application of the golden rule, one should imagine oneself in the situation of the other person who is the recipient of the action. When one reflects on the feelings and treatment to be accorded by one’s decision, then, one can imagine how it is to be treated in the way perceived. If the action is not accepted in one’s personal standard, then it should not be applied to others. Applying this concept on Pat’s case, she should then imagine that she is the recipient of the action. If she was the one who fears that she might me laid-off, she would have wanted to get the fact immediately so she can prepare to apply for a new job at the soonest possible time. However, given that Pat understands the principle of confidentiality and trust accorded by employers to privileged employees – those who gained the management’s trust – then, she is also in the position of understanding that some information needs to be disclosed in due time. Meaning, if my friend had been in the company for 15 years, I would understand that she earned management’s trust through her loyalty and adhering to company policy of maintaining privacy and confidentiality. In this regard, I would not like to put her in a position where she would be pinned against disclosing critical information that could endanger her employment. In this regard, I would understand if she would not disclose any information regarding the lay-off. Kant’s Categorical Imperative The categorical imperative principle envisioned by Immanuel Kant stipulates that actions must be made according to a prescribed general rule where everyone is expected to abide. (BBC, n.d.) In the case, Pat should conform to the general rule of confidentiality where one is always expected to keep one’s promise. Her boss had complete trust that Pat would not divulge any information confided to her. In this regard, the trust that she earned from the 15 years of serving the company should not be diminished or compromised at the expense of her friend’s inquiry. This ethical approach is applied in the case by asking if there is enough rationale to break the promise given to Pat’s boss considering that there is a universal law that one must always keep promises. When she opts to break that promise, her integrity would be weakened and management would never trust her again. Therefore, using this principle, Pat must conceal the information about the lay off at all cost, since it conforms to the universal law to keep information divulged in complete trust and confidence, and it is the moral thing to do. Virtue Ethics According to the concept of virtue ethics, the focus must be on the expression of moral virtues or good character of the person acting. (Garrett, 2005) This approach does not emphasis on rules that people should follow. The character developed by people provides the guiding principles for decisions in life. As such, future actions are governed by the person’s character developed according to moral and ethical principles. Using this principle, Pat has gained loyalty for working with the company for 15 years. Management knows that Pat exudes values of honesty and integrity. In fact, management would not have allowed her to render her services for so long if she failed to manifest these traits, as required of the job. Accordingly, Pat should keep her promise of not divulging any information on the lay off. She could honestly and frankly tell her old friend that she is not authorized to reveal information to confirm the veracity of the lay off. She can inform her that information could be asked directly from authorized officers who are more capable of telling them the truth. Otherwise, they should just wait for official announcements on the matter. By deciding to do this, Pat retains her loyalty, trust and integrity and her admirable character would remain unblemished. Consequences and Obligations Revealing the information would be detrimental for Pat as she would breach the trust and confidence accorded by her boss. This could possibly tarnish the performance of her job because as a plant manager, she is expected to conform to all policies and procedures, particularly on honesty, integrity and confidentiality in undertaking assigned responsibilities. Divulging the information is tantamount to a loss of trust and would therefore make her dispensable at anytime. The 15 years she invested in the company would then be wasted by a wrong ethical decision. On the other hand, keeping the information from her old friend would not have drastic actions as enumerated above. The worst that could possibly happen is that her friend would feel disappointed. Anyway, there is no way that her friend could confirm the veracity of the information about the lay off that was confidentially given to Pat. Therefore, Pat is in a better position to abide by her principles of adhering to company policies, specifically of confidentiality and still be honest about it. In the end, if her friend is indeed one of the 200 workers to be laid off, Pat could even assist her find another employment. The critical eventuality of the case is that in due time, anyway, management would reveal the information about who among the workers would actually be laid off. Pat should recognize that there is a pressing need not to put herself in a precarious situation by divulging confidential information entrusted to her. The 15 long years invested in the company should not be wasted and she should remember that she is actually indebted to the company for her college education. In the end, it is just right and moral to conform to her values of honesty and integrity in this situation. Conclusion Generally, every endeavor requires a code of ethics which encompass principles and values of integrity, objectivity, competence, respect and protection of legal and personal rights, confidentiality, nondiscrimination, promotion of wellness, refusal to participate in illegal and unethical acts, and compliance with state and federal laws, among others. In the case of Pat, the four ethical theories provide the guiding principles for decision making. Pat has earned the trust and confidence of senior management due to her ability to discern right from wrong, and her principles to conform to ethical standards required and expected of her job. Equipped with values of honesty and integrity, Pat is aware that scenarios requiring solving problems should be taken as opportunities to enhance one’s skills and strengthen one’s abilities to face whatever challenges the future brings. Leadership is a significant dimension in any organization. The success of an organization depends much on the quality of its leadership. With the behaviors and values identified as critical in ensuring organizational success, a close evaluation of the strong ethical leaders would definitely assist in the achievement, not only of organizational goals, but of addressing the needs of the followers, the community and society, which they serve. Works Cited: BBC. Ethics Guide. n.d. Web. 09 March 2010. Garrett, D. Virtue Ethics: A Basic Introductory Essay. 2005. Web. 09 March 2010. Gensler, Harry J. The Golden Rule. N.d. Web. 10 April 2010. < http://www.jcu.edu/philosophy/gensler/goldrule.htm> Utilitarian Theories. Utilitarianism. 2002. Web. 10 April 2010. < http://caae.phil.cmu.edu/Cavalier/80130/part2/sect9.html> Read More