Ethics and Integrity as Significant Parts of Business - Case Study Example

Ethics and Integrity as Significant Parts of Business Summary of the Important Facts Ethics and integrity are significant in business, but sometimes employees undergo some challenges that may make them fail to comply with the code of ethics. The case study of the aircraft brake scandal in the B.F Goodrich Company reveals the way it is difficult to make an ethical decision in some cases. This is because of employee’ failure to produce the required aircraft brake; hence they could not meet the required military specifications. Many engineers tried to carry out the test in order to determine in case the brakes are effective, but in most cases, the result was a dismal failure. Employers always strive to deliver their best in order to produce effective services that will meet and satisfy the needs of their customers. Companies need to conduct their business in a truthful and an open manner. However, in some situations, some issues arise that makes them to hide information because of the accepted standards governing the company. These laws of the company can sometimes create ethical conflicts with the set state laws. For instance, the failure of engineers to design effective brakes that could meet the required military standards contributed to the issue of fraud in the Goodrich Company. Employees decided to act unethical despite the attempt to produce the required brakes that meet the established military requirements. This is because they wanted to fulfill their duties but without knowing that they could risk the lives of the third parties. This is especially the pilot who could test the aircraft and maybe get an accident due to ineffective brake design. Relevant Standards/ Principles Companies should always carry out their business while taking into considerations the ethical issues. Many companies may decide to hide the truth about what is happening in their company, but in case this is discovered later, the company may end up facing lawsuit or lose its reputation. Employees at Goodrich Company decided to lie after carrying out several tests that provided negative result. They ended up writing false report indicating that the brakes met the required military demands because of fear to lose the reputation of the company and need to achieve the principle of fair dealing practices. Many employees make agreements act in fraud cases when they are defeated in making clear decisions about the matters affecting them. Tabling the issue before the company representatives and seeking for advice from everywhere is significant than rather deciding to hide the truth. This is because the company may hide the truth, but it will not take long before the truth is revealed out. For instance, the case aircraft scandals and employees’ failure to produce the required A7D brake could contribute to serious issues when the pilot would test the aircraft. Some issues are difficult to hide for a long time because at one time, the accident may occur and this will call for investigations. Thus, the company may end up losing its reputations in case they are found that they are practicing fraud and conducting unethical business, which does not meet the required code of conducts. Providing honest information, working together, sharing information and avoiding misconduct in a company is essential. These are among the codes of conducts through which an organization will receive a positive reputation. Even though, revealing negative information of the company may contribute to lose of reputation and hence; lower their revenues, maintaining ethical standards in a company is effective in achievement of organizational success. This is because it will enable the company to manage risks, maintain its reputation and stand to be exceptional in the competitive marketing place. It is vital for employees and leaders to understand the significant of acting in an ethical manner rather than providing false information. This is in case the information is likely to affect the third party; thus understanding the ethical standards that reflect the best practices in the company is vital. Ethical theories are associated with various relevant codes of duties, rights, best practices and commitment. Many employees strive to perform their duties effectively and commit themselves towards attaining the interest of the organizations. Although, applying these ethical theories in evaluating the potential cause of action may seem a difficult issue. This is because challenges may arise in the process; thus creating misunderstandings and contributing to poor organizational performance. For instance, the case study of the brake scandal reveals the way the ethical theory of duties, commitment, best practices and rights are so challenging in a working environment. Therefore, it is crucial for the company to understand the cause of action in order to enable them to make effective decisions. In most cases, decision makers do not understand the nature or consequences that may arise from the course of actions. Many of them fail to handle issues effectively, or they sometimes employ alternative interpretations and overlook on guarantee effects; thus causing impacts on other people. Understanding the main aspects when taking action such as the intended aim, effective description and the probable consequences are crucial steps in the decision evaluation process. For instance, the management leaders and employees in the Goodrich Company could find the possible cause of action of solving the issue. This could enable them to come up with an effective way through which the company could continue delivering effective services to their customers. Ethical Analysis Ethics play an integral part in business; thus the scandals that arose in the in the B.F Goodrich Company is a result of a slight organization management philosophy. Ethics is vital and it pays off when the management implements effective organizational programs. Effective business ethics can sustain the business environment and enable the company to achieve success. This is in case the management has superior governance, leadership and effective daily management. The company should have code of conducts that have bedrock values, which involves accountability, fair deals, truthfulness, mutual respect for everyone and action plan. It is vital for companies to implement an action plan, which will enable them to analyze ethically the probable consequences that may arise in both short and long run. This is in case the company may fail to adhere to ethical principles. Therefore, implementation of the action plan will enable the company to analyze the duties and rights of each employee as well as their commitments in the company while taking into considerations the ethical standards. When carrying out ethical analysis, some ethical judgments may arise including the visibility, generality and legacy. These are essential because it will enable individuals to evaluate their judgment basing on the three ethical judgments. The issue of visibility ethical test can remind people to consider their actions, and the way they will view their actions. In the case of generality, the ethical test may enable one to take into considerations things that may result from one’s actions. The legacy ethical test reveals the significant of self-evaluation when making decisions. Before taking action or reporting a fraud case, one should first carry out self-evaluation in order to determine the consequences that may arise. Thus, ethical analysis requires effective data gathering, public opinion and laws that will enable one to make vital judgment. This is because ethical issues are difficult to handle in some situations due to varied laws or principles governing a certain environment. Many companies have their own laws or principles and these may conflict with other ethical codes governing a state. Therefore, it is essential to evaluate or carry out ethical analysis in order to determine the way of making effective decisions that cannot impact the welfare of others. Read More