Ethical Decision of Moral Gravity - Essay Example

Business Ethics: Decision of Moral Gravity Business Ethics: Decision of Moral Gravity Introduction Different people have different definitions and descriptions about what ethical or moral standards are. Today, people operate to a large extent under predetermined moral guidelines. The society has ‘communally universal’ standards that influence and direct behaviors. Different settings have diverse moral/ethical principles that guide actions and practice. Imagine using curse words in church or with one’s boss, this is not only shameful but punishable in many instances. However, the same words can be suitably used when one is sharing drinks with friends. This explains the principles of courtesy and respect. Despite the diversity that exists amongst many people concerning the acceptable ethical standards, it all boils down to societal expectations and provisions for good and bad (Shaw, 2011, p. 99). All ethical standards subscribe and should entangle with the society’s guidelines about what is right and wrong and the legal framework. The ethical standards at workplace should align with the societal moral principles such that when work ethics are breached, it directly go against the society’s moral guidelines. This essay aims at describing and analyzing, with reference to the ethical principles, a personal experience in which an issue with a moral gravity in business was resolved in order to bring out a comprehensive outlook into the decision. I witnessed a challenging situation in which an organization’s management decided to fire an employee on grounds that the employee had breached ethical of code of conduct. The employee in question, one Mr. Livingstone was a sales manager in an insurance firm. He had signed a contract to work for the firm in assisting it to restore market dominance that the firm had lost about 5 years ago due to the increased competition. The insurance industry in the last half decade had seen increased entry of organization that ended up stirring the competition. The firm Mr. Livingstone was working for had, in the process, greatly recorded low sales volume. Mr. Livingstone, a reputably popular sales manager with great success stories was hired to help transform the condition of the company. Unethical Practice After 3 years of dedicated hard work, the organization’s performance in the highly competitive market greatly escalated to a point that they could hardly attend to all the clients or rather customers. The facilities and resources they had could not meet the demands of the customers because the number was extremely big. The organization was making great profits since they slightly raised their charges. It was at this peak moment that Mr. Livingstone thought of a deal that probably would make him earn more income. The plan was to find clients and refer them to other firms dealing with the same service at a commission. He struck a deal with several organizations which agreed to his demand of constant $180 for every client referred, Of course payment was disbursed to him after the clients agrees to sign the insurance contract. This way, Mr. Livingstone would make more money than the salary he earned at the company he was legitimately working for. The main reason why he was referring the clients was due to the fact that the organization he was working for could not attend to the overwhelming number of customers. Summoning It is for this reason that Mr. Livingstone got into problems with his bosses. He was summoned by the board and questioned about the unethical act of diverting customers to other companies without the knowledge and consent of the organization. The argument was based on breach of loyalty, integrity and honesty. The fact that he kept his side deals a secret yet it probably affected the organization was a real concern for the organization. Mr. Livingstone admitted having been involved in such dealings. However, he argued that the prime reason why he did that was because the business he had signed a contract with could not handle the great fortune he had brought to the company. “I saw it wise enough to make extra cash from my talent so I can solve the great financial crisis I am going through back at home’’, he explained. He was then asked if he understood that it was a breach of ethical code of conduct to disloyally ‘trade’ in some secret deals with the competitors of which he admitted. Outcome What surprised many was the decision the disciplinary board made on Mr. Livingstone’s case. It was decided that breach of ethical codes of conduct of such nature was inexcusable especially if the victim clearly understand the consequence of their actions. Mr. Livingstone was therefore fired from the organization. The organization further explained that such harsh penalties would promote adherence to ethical standards amongst employees and uproot the seeds of unhealthy practice. The organization insisted that no employee is ‘above the ethical standards’ and that penalties should be uniformly applied. Personal Interpretation Although the practice was undoubtedly a breach of loyalty principles since it involved promoting direct competitors, the outcome was gross and unreasonable. The organization could have, once they knew they could not handle the big volume of customers, sought for inter-organization formal alliances, mergers or partnerships with other firms for a commissioned referral. They could have also given Mr. Livingstone a warning rather than dismissing him. The decision not only affected his (Livingstone’s) family but also the workers morale since the memo was all over the notice board informing workers about the issue. Conclusion Ethical standards are undoubtedly essential in any society that wants to maintain order and stability. Peaceful coexistence is found when they are guidelines that safeguard and regulate actions. The business environment, just like any other setting has its own moral/ethical codes that stipulate the dos and the don’ts. However, the decisions concerning moral/ethical dilemmas should be made after a rational thought having weighed the implications. The organization that fired Mr. Livingstone was too rigid to listen and understand the other side of the story. There were options of dealing with the problem other than dismissal. All in all, ethical standards should be followed. Reference Shaw, W. H. (2011). Business ethics. Belmont, Calif: Wadsworth. Read More