Ethics in Organizations - Case Study Example

Ethics is the branch of philosophy that deals with the determination of what is right or wrong. Ethics is about morality and not laws. Organizations must ensure that their operations, rules and regulations, and organizations policies do not adversely affect their stakeholders. In this case, the stakeholders that are affected are the managers, customers and sales personnel, and other employees. In as much as the main goal of businesses is to increase their profitability by becoming efficient and effective in their operations, the obligations it has to their stakeholders must be upheld (Bader 12).

First, decentralized managers are under pressure to improve their operations. This means that they suffer from psychological problems including stress from having to work for long periods or implement very discriminating and harsh work conditions. The sales representatives are also forced to apply unethical ways to increase their sales turnover. This could be harmful to the business's long-term image. Moreover, the consumers’ welfare is likely to be breached if quality control procedures are compromised to reduce operating costs. Customers have the right to get quality products free from any harm.

The managers of the corporations are in a dilemma of having to increase their performance through unethical ways or face termination of their services or demotions. They are torn on whether to breach the welfare of the customers or go against the company's requirements. The sales personnel too have to embrace unethical ways to increase sales and this could force them to give wrong information for sales to be realized. Read More