Business Environment - Essay Example

? CASE STUDY ETHICAL DILEMMA Your School of Engineering, Social Sciences, etc Number and of Date of Paper Abstract This paper presents some of the common problems encountered in the course of making ethical decisions in the business environment by emphasizing the core of ethics which includes the discipline of decency, upholding the values of leadership, competence, integrity and professionalism. This paper explains moral awareness, as it represents the first stage in an intertwined, multiple-stage decision-making process that shifts from moral awareness to moral judgment, then to moral motivation and lastly, to moral character. The application of the Utilitarianism approach was chosen in coming-up with an ethical decision, as it is an “outcomes-based” ethical approach which requires cost-benefit analysis, by weighing the negative effects against the positive effects, and deciding which course of conduct shall produce the best result, and having in mind that the paramount consideration is the welfare of the company by placing the interests of others above individual interest. Keywords: moral awareness, ethical dilemma, utilitarianism, ethical decisions, ethical approach, moral judgment CASE STUDY ETHICAL DILEMMA Problem Karen Hathaway is in a dilemma trying to decide who shall be the best candidate who deserves the promotion, among the three managers who are vying for the same position. All of the potential candidates are highly qualified for the coveted position in the company. The decision she has to make is very critical in order to ensure that the company is placed in the hands of only the best manager. She is being pressured by her superior and upper-management people to promote their own bets. She has also been informed by her immediate superior that making the wrong decision would not be good, either internally or externally, and will affect her work performance and credibility. Karen is now facing an ethical dilemma on who among the three candidates is most worthy to receive the promotion. Input The three candidates are the following: The first candidate is Carmen, who is 34 years of age, an African American, recently divorced and, a single parent to an only child. She graduated in the lower half of her college class in Northwest State. She has been with the company for four years and in the industry for eight years, with average performance ratings, but is notable for her high energy level. As a superior, she has experienced some difficulties in managing her staff. Aside from this disadvantage is also her child’s poor health condition. Clinching the promotion will be a big help to manage her financial condition. In the event that Carmen gets the promotion, she will be the first African-American female manager at this level. Karen has known Carmen only a short time, but she has never had problems with her and they have become friends as Karen has once baby-sat Carmen’s daughter during an emergency. The drawback in promoting Carmen will place Karen in a tight situation as she might be accused of having biases and favouritism. The second candidate is Ralph, an American, 57 years of age, married with three children and graduated top half in his class from a private university. He has been with the company for twenty years and in the industry for thirty years. He has been classified as a steady performer in the company, receiving mostly average ratings, with average to very low energy level. He was lauded in his work performance when he was able to produce many of the company’s top sales performers in the past. He has been not been promoted from his current position because of his refusal to relocate. This promotion would be his last before retirement, and his colleagues believed that he should be next in line because he has earned the position as an employee of the company for 20 years. In fact, one senior manager stopped Karen in the hall and said “You know, Karen, Ralph has been with us a long time. He has done many good things for the company, sacrificing not only himself but also his family. I really hope that you can see your way to promoting him. It would be a favor to me that I wouldn’t forget.” The third candidate is a female employee named Yingzi, who is 27 years of age, female, Asian, and graduated from State University in the top 3 percent of her class and has been with the company for three years. She is known for putting in sixty-hour weeks and for her very meticulous management style, which has generated some criticism from her sales staff. The last area she managed showed record increases, despite the loss of some older accounts that for some reason did not like dealing with Yingzi because of her attitude problem. She is perceived as an intense and persistent employee who is determined to reach her goals. Based on her employment history, she sued her previous employer for discrimination and won the case. Karen has been approached by another upper-management individual who put in a good word about Yingzi and recommended her promotion for the manager position as many people from the company believes that Yingzi will turn-out to be an asset for the company as she is foreseen to give a tremendous boost in the company’s performance. Just as Karen was carefully studying the qualifications of each candidate, supervening events occurred as Carmen’s daughter, Heather figured in an accident and is in dire financial distress to manage their expenses. Carmen also needs to take a break from work in order to take care of her daughter. The promotion will greatly help Carmen financial condition. The following day, it was Ralph’s turn to announce the he was getting married to the vice president’s daughter and the wedding is considered as a company affair. Karen is now torn who among the three is the best candidate for the promotion. She is now faced with an ethical dilemma of choosing who between the three candidates deserves the promotion. Before reaching a decision, Karen must be able to practice good business ethics, by weighing in the positive effects and negative effects of her choice. Otherwise, the outcome of her decision may not be for the best for the company and whole organization. According to Bellingham (2003), “Ethics is defined as a two-fold manner: 1.) The discipline of dealing with what is good and bad, and with a moral duty and obligation; and 2.) The principles governing an individual and a group”. Thus, Karen must act with great caution in the formulation of her choice. “The core of ethics involves the discipline of decency; while the essence of ethics is interdependent thinking and questioning” (Bellingham, 2003). Here, the first step towards making a moral judgment is for Karen, as the decision-maker, to acknowledge that there is an “ethical issue” that needs to be resolved. “This triggers the moral judgment process, and understanding. This initial step is key to understanding ethical decision-making more generally”(Trevino and Brown, 2004). Ethical decision-making entails a multi-stage process. Trevino and Brown (2004) has stated that “Moral awareness represents just the first stage in a complex, multiple-stage decision-making process that moves from moral awareness to moral judgment, (deciding that a specific action is morally justifiable), to moral motivation (the commitment or intention to take the moral action), and finally to moral character (persistence or follow-through to take the action despite challenges)”. According to Swinton, L. (2007), “There are different ethical approaches which may help you make the most ethical decision: a.) Utilitarian Approach - which action results in the most good and least harm?; b.) Rights Based Approach - which action respects the rights of everyone involved?; c) Fairness or Justice Approach- which action treats people fairly?; d.) Common Good Approach - which action contributes most to the quality of life of the people affected?; and e.)Virtue Approach - which action embodies the character strengths you value.” Therefore, Karen must base her decision on the ethical approaches mentioned above. She must be able to thresh-out her personal emotions from professionalism, in order to make an impartial assessment of the three candidates. She must be impartial, free from any biases and should not play favourites in choosing the right candidate. The decision must be based on the individuals’ personal qualifications, personal values, work performance, work ethics, and each individual’s relationship with their clients, colleagues, superiors and top-rank executives in the company. Solution The first solution to solve Karen’s problem is to follow the Utilitarian approach so as to ensure that she is making an ethical decision. Utilitarianism is an “outcomes-based ethical approach which requires cost-benefit analysis, weighing the negative effects against the positive, and deciding which course of conduct produces the best outcome. This is an ethics which is based on philosophical reasoning such as that of John Stuart Mill”(Miller and Jentz, 2010). She must be able to think broadly as much as possible, and look at the bigger picture and foresee how her decision will affect the employees, her colleagues, shareholders, customers, and even the community, as part of the corporate social responsibility. “Compliance with the law is normally regarded as the moral minimum or the minimum acceptable standard for ethical business behavior” (Miller and Jentz, 2010). She must be able to identify the strengths and weaknesses of each candidate who is vying for the managerial position, weighing in the positive effects from the negative effects of the outcome of her decision. She must dig dipper and look at the qualities of each of these individuals on the aspect of work performance, skills and competencies for the position. Who among these three employees is the most hardworking, dedicated, can contribute in the management and success of the company and ensure that the company stays in tip top condition. These are the questions which must be answered individually after careful thinking and realization. Carmen’s high energy level is her strong point, though she only maintains average performance. She is having financial problems because she is a single mother to a sickly daughter and this promotion will help her financially. But is Carmen will be promoted, she will not be able to devote her full attention to the job as she cannot forego family emergency situations which required her presence. While Ralph, the most senior among the three is a steady performer, and has been with the company for 20 years. He has not been promoted because of his refusal to be relocated. His loyalty and dedication to the company should be merited. His 20 years of experience in the company deserve recognition, as he has made personal sacrifices for the company. This promotion is his last chance in the company as he is set to retire in the coming years. Yingzi, the youngest among the three at 27 years of age, is single, dedicated, has a meticulous management style and an intense and persistent employee, who is determined to reach her goals. She has only been with the company for three years. Although she has been recognized by the company for her hard work, persistence, intensity and dedication to reach her goals, she still needs more experience compared to the two senior employees. She is not yet ripe for the promotion as there are still lessons she has to learn such as improving her work attitude in dealing with co-workers and clients. She may have the passion for work and competence, but she will have her time. The second solution is for Karen to concentrate on the values. “Laws and internal company policies reinforce social values. She must be able to answer the question is she following the spirit of the law as well as the letter of the law and the company policies” (Miller and Jentz, 2010). Here, Karen should not be base her decision on the preference of gender, just because she belongs from the same gender. She must not favor the two women competing for the position. She must also not be driven by the “glass ceiling” scenario by castrating Ralph for belonging to the male gender, which can cause a hindrance to minorities or women who are prevented from climbing the corporate ladder despite of their qualifications and competencies. The last solution for Karen is to use her conscience as her guide. If the feeling is right, she can never go wrong as long as she used right reasoning and adapted a moral-judgment process. Choice After careful thinking and consideration, Karen should promote Ralph. He is the best person who will fit the position as manager. His experience of 20-years in the company and 30 years in the business, his qualities of hard-work and dedication makes him the person who fits the position. Operation Operational Goal: Improve the company’s marketing performance by promoting Ralph, a senior executive, who has a history for tapping top sales performers, in order to boost the company’s economy. Action Steps: 1. Identify the most valuable sales performers, agents, retailers, wholesalers and consumers. 2. Create reasonable goals and provide a plan to target the goals. 3. Cultivate a culture of high performance by providing incentives to hardworking employees. 4. Ralph, as a newly promoted manager must undergo a series of trainings and seminars to keep abreast on the latest trend and techniques in effective marketing. 5. Foster candor and transparency among employees and give them a chance to voice out their opinions and to be able to participate in the policy and decision-making of the company. References Bellingham, R. (2003). Ethical Leadership: Rebuilding Trust. Amherst: MA: HRD Press, Inc. Mendoca, M. and Kanungo R. (2007). Ethical Leadership. UK: McGraw-Hill Companies. CFA Code of Ethics and Standards of Professional Conduct. (2010) Web. Retrieved on 23 May 2011, from http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2010.n14.1 Hosmer, LaRue Tone. (2010). The Ethics of Management 6th Edition. USA: McGraw-Hill/Irwin Publishing. Miller, R.L. and Jentz, G.A., (2010). Fundamentals of Business Law, 2nd edition, USA: Cengage Learning. Swinton, L.(2007). Ethical Decision-Making: How to Make Ethical Decisions in 5 Steps. Retrieved on May 23, 2011, from http://www.mftrou.com/ethical-decision-making.html Trevino L. K and Brown, M. E. (2004). Managing to be Ethical: Debunking Five Business Ethics Myths. Academy of Management Executive, Vol. 18 No. 2, Retrieved on May 23, 2011, from http://home.sandiego.edu/~pavett/docs/msgl_503/mging_ethic_debunk.pdf Read More