Ethical Decision - Research Paper Example

?Ethical Decision Affiliation with more information about affiliation, research grants, conflict of interest and how to contact Ethical Decision Memorandum PART 1 To: Mr. Paul Samuels, Chief Executive Officer (CEO) From: Michael Sanders, Elementary Divisional Manager Date: March 17, 2011 Re: Presence of unacceptable levels of lead in toys designed for elementary school children -------------------------------------- Dear Mr. Samuels, I would like to draw your kind attention to the contingency that has confronted our Company recently with regard to the above issue and offer my opinions and suggestions on the matter of presence of unacceptable levels of lead randomly found in the whistles to be supplied to elementary school children within the age group of 7 years and less. I append below my views on the matter: A. Three possible decision alternatives to address the problem regarding the whistles: 1. Withdraw the entire consignment of the order and arrange to have cancellation of the order. If any advance payment has been made, to arrange to have it refunded to the customer. 2. Let the consignment go as it is upon the assumption that just a few whistles have been carrying the high lead content and the others are quite safe for children’s use. 3. Further carry randomized checks on lead content of the whistles contained in the consignment and bifurcate the passable whistles vis-a-vis the reject able ones. Make a fresh consignment containing only the Quality Check (QC) passed whistles. Thus, the three alternatives and their explanations before the company in the wake of this contingency are as follows: (A) Arrange for total withdrawal of the tainted consignment and arrange for cancellation of the order and refund of the money if paid by the buyer. This is because there could be no compromising on the health of young children with regard to toxic whistles which is capable of causing great health detriments and besides earn a bad reputation to the company which is even more valuable than the total loss of a consignment worth $100,000. The enormous reputation and goodwill of the company is at stake just for a shipment worth $100,000 which is not acceptable by the top management of the company. The financial consideration for this alternative is the loss of total stock which is now considered scrap. However the reputation and goodwill of the company in terms of ethical and moral values is intact and no legal action would ensue since the consignment has been called back. The main advantages of this alternative would be that the company would not lose face or face lawsuits for supplying toxic whistles. The disadvantage would be the loss of the entire shipment and losses of $100,000 (b) The second alternative would be to allow the consignment to go on as though nothing has happened, and presume that the toxicity would be minor and negligible confined to just a few odd whistles, which would have been there, anyway, considering the bulk of the shipment. Sometimes, companies need to take such risks, in the greater interests of business and in order to circumvent economic losses, or lowered profits. It is quite possible that these may be few in numbers and not create a major issue with customers. The main advantage is that economic losses would be avoided but the disadvantages would stem from probable lawsuits and loss of business reputation. In the event the Government institutes an inquiry to alleged high toxic levels in toys, the company would be in real trouble. The ethical aspects are also heavily compromised since the company is taking a calculated risk that its products would be accepted without further inspection by health authorities. (c) The third alternative seems to be the most sensible and rational under the circumstances, that is, once again, carry out thorough checks on lead content of the whistles contained in the consignment and separate the Quality Checked whistles vis-a-vis the rejectable ones. Make a fresh consignment containing only the Quality Check (QC) passed whistles and invoice the customer accordingly. Inform the customer candidly of what has transpired and also promise that the deficit in this lot would be made up in the next shipment to them. This is based on the sound premise that only thoroughly QC items should be allowed to be shipped to the buyers and they need not pay for toxic whistles. Besides being a health hazard, it is also a smear on the reputation of the company. The advantages are that the levels of business honesty and integrity would be maintained and would avoid future government action or public lawsuits. The disadvantages could be in terms of delay in fulfilling the order and meeting delivery time of buyers. B. The methods that would be used for these alternatives would be rejection of the entire consignment till such time the issue is resolved, believing in the law of averages and probability that there would be no more further complaints and finally standardized random based trials of whistles to determine whether it passes lead test or not. C. The advantages of the first alternative would be that the ethical aspects of business would be well maintained although economic losses would ensue. Regarding the second alternative, there would be no economic losses but ethical value of business which is worth much more than mere $100,000 would be severely compromised. Regarding the third alternative, there would be economic losses for rejected whistles but business ethics would be kept intact. D. The financial, legal and ethical considerations of changing the entire consignment would be huge – the alternatives would cost the company over a million dollars, but the legal and ethical aspects would remain intact. The financial, legal and ethical considerations of allowing the shipment to go to would be increased risk of more whistles being dangerous for children use. This could lead to complaints and even legal lawsuits against the company. Again this is not also legally fool proof since we are giving scope for future lawsuits and unethical behavior. E. According to me, the third alternative is most appropriate. Further investigations need to be carried out that could reduce the liability and cause for future action. Only the whistles that have passed further QC tests would be allowed. The possibilities of future legal action and lawsuits would be considerably reduced and the business relations with the customer would remain intact. This would also improve customer relationships since they are quite confident that we would be selling them whistles that could pass the most stringent QC tests and examinations. Besides, the role of social responsibility in the context of a consumer goods business is indeed very significant. While there may not be applauds for good products, bad products would receive a great deal of condemnation and criticism. The social responsibility of business demands that business is conducted in a positive and constructively ethical manner with least hazard, harm or detriment to customers and ultimate innocent users of products .Besides, the company is under obligation to provide safe, reliable, non toxic and standard toys to small children in the greater interest of their health and safety. Presented for your perusal and necessary action in the matter, Sir, Regards, Michael Sanders Elementary Divisional Manager PART 2: Report to the Chief Executive Officer (CEO) and board members on the importance of ethical Decision making Ethical decision making is the most critical aspect of any business since a wrong ethical decision could even ruin the company while a judicious one could promote it in many ways. “Corporate ethics and responsibility of companies, such as British Petroleum (BP), weigh on the minds of consumers in the wake of environmental disasters like the 2010 Gulf of Mexico oil spill. Corporations must take responsibility for conducting business ethically, openly and responsibly in a global market. This accountability includes compliance with domestic and international laws, and giving back to society. Through corporate governance and social responsibility, corporations demonstrate recognition that their decisions have implications for nations and communities.” (Importance of Ethics, 1999). During the course of business dealings, it is often seen that often ethical dilemmas arise during which time it would be necessary to take decisions on the spur of the moment. In such cases it is necessary to consult the Management team and concerned divisional heads on how collective thinking could provide the most sensible and correct decision. Collective decision making is always more important than individual ones since all aspects of the problem would be correctly dealt with. In the case of whistles with more than acceptable levels of toxic lead, there are legal, ethical, health and economic considerations. Besides, the perspective of actual users of such toys is also to be considered. “Ethical behaviour is characterized by honesty, fairness and equity in interpersonal, professional and academic relationships and in research and scholarly activities.” (Definition of Ethical Behaviour Faculty of Health Professions, n.d.). The two strategies that the company could adopt to ensure that ethical decision making takes places could be as follows: Business is underpinned by ethical considerations and this business is no exception. While profits and turnover levels are indeed important in business, they need not be the only criteria. Practising excellent human relations and rewarding performance are also major areas that need to be looked into, besides following the Code of Conduct Manual to the hilt. The Code of Ethics delineates that businesses should be transparent and honest in their dealings and could serve as a roadmap for the business in their endeavours to deal with various stakeholders of the business. The Code of Ethics could benefit the business in the following ways: It could serve as a useful road map for the business in its endeavours to build business To the top management it could be a guide to correct and ethical decision making process taking all aspects into consideration To the employees and workforce, it would be guide them in their day-to-day operational aspects of business and dealing with emergencies and critical situations involving moral conduct and integrity In its relationship with outside parties and stakeholders, the Code of Ethics serves as a guide for best industry practices and seeking conformance with legal and regulatory norms of business The Code of Ethics also serves as a regulatory and disciplinary plan of action in order to enforce adherence to pre- determined policies, procedures and processes while conducting business Its main benefits stem from the fact that being an effective road map, consistent and sustained conformance to rules and regulations could be ensured that could aid and abet all aspects of business in a binding, forceful and sustained manner. “I believe that every company has the right to adopt a strong policy that unethical conduct on the part of its employees will not be tolerated, and to enforce that policy as long as the company complies with the law and acts in good faith” (Lauren, 2008). In this Code of Moral Ethics, the various processes through which sound ethical decision making could be carried out would be laid out. Besides, this would also serve as a guiding post for meeting ethical dilemmas, laying down priorities at work and also guiding its users in different ethically challenging and perplexing situations. In this case, the Code of Ethics would definitely lay out that the defective or unacceptable materials cannot be consigned, and therefore it would be necessary to make a thorough investigation and study for the causes of this problem (excessive lead in whistles) and offer solutions according. In the event the production or making process has to be changed to accommodate ethical conduct in this business, it would have to be done forthwith without further delay. Institute internal checks on ethical practices or internal audit system for employees. There needs to be an Ethical Committee (EC) headed by the CEO or other senior officers who would oversee the proceedings and deliberations in the EC. The main tasks of EC would be to act as oversight of various ethical decisions taken, their critical analysis and offer constructive advice and opinions on how the ethical committee could be rendered more effective and efficacious in as far as company ethical matters are concerned. The main function of the Ethics Committee in this organisation would be to offer consultancy and recommendations to the Board of Directors, including the CEO and others as to what constitutes ethical conduct in selected situations and how ethical crises as the one presented above could be best confronted and resolved. “The primary purpose of this committee is to: a. Ensure protection of the rights, safety and well-being of human subjects involved in a research project on drugs, devices, procedures, and etc. b. Provide public assurance of that protection.” (Independent Ethics Committee, n.d.). The Company could benefit from a Code of Ethics in the following ways: There would be consistent ethical practices and this would improve matters Employees would be able to quickly distinguish between what is unethical and needs to be avoided and what is ethical and could be pursued whole heartedly Ethical dilemmas could be resolved to the satisfaction of all concerned It would act as the guiding beacon for ethical and moral decision making The next company that would need to be taken up is that of a Knowledge Processing Organisation (KPO). The Code of Ethics would ensure that employees are treated in a fair, equitable and non discriminatory manner, and it is an Equal Opportunities Company wherein everybody is able to take care of their roles and responsibilities without overlapping with that of others. While team work is important for furthering joint goals and objectives, individuals also need to raise the bar in their own individual performance in order to make significant contributions for their own career development and move along their career path. There could be many challenges in a person’s career development path and also that of the corporate entity in terms of how one should react to certain scenarios and situations. For this reason it is necessary that challenges, ethical or otherwise should be met and remedies sought. A passive and non committed effort with regard to ethical issues cannot always be in the best interests of the company and it is therefore necessary that proper decision making, without any kind of bias or discrimination is pursued and perpetrated. Any kind of discrimination and prejudice could also be seen as unethical and morally lowered behaviour. Walmart, for instance,, strictly follows a Code of Ethics. At Walmart, employees are taught on how “All of us should constantly work to maintain a working environment that encourages associates to raise concerns about possible violations of our Statement of Ethics. Often we hear stories of other companies where employees were aware of problems, but did not feel comfortable coming forward. No one should feel that way at Walmart. Please report possible ethics problems immediately so they can be resolved before more serious consequences develop” (Walton, 2008). Finally, thus, this section does provide a plausible analysis, with sufficient support, of a Code of Ethics for another company of the candidate’s choice to determine the components that are important to include in the development of a Code of Ethics. Reference List Definition of Ethical Behaviour Faculty of Health Professions, (n.d.). Retrieved March 17, 2011, from http://healthprofessions.dal.ca/Files/EthicalBehaviour.pdf Independent Ethics Committee, (n.d). Master Computech. Retrieved March 17, 2011, from http://www.iecindia.org/ Importance of Ethics, (1999). eHOW. Retrieved March 17, 2011, from http://www.ehow.com/importance-of-ethics/ Lauren. (2008). Must you have a policy to enforce good ethics at your company?. Thebusinessethicsblog. Retrieved April 5, 2011, from http://www.thebusinessethicsblog.com/must-you-have-a-policy-to-enforce-good-ethics-at-your-company Walton, S. (2008). Statement of Ethics. Walmart. Retrieved April 17, 2011, from http://walmartstores.com/media/cdnpull/statementofethics/pdf/U.S_SOE.pdf  .  Read More