Normative Decision Making in Ethics - Essay Example

? Normative Decision Making in Ethics: The Case of Costas and Dionisis Ethical Dilemma 11: Always good to have friends in politics? In the case d where Costas, the contractor, is torn on how to deal with the municipal mayor’s insinuation of building a pool in his house represents the common dilemma of a business in dealing with a corrupt government official. The ethical issue in the case however is not only limited to dealing with a government official because the same ethical dilemma is presented by other entities to business where business is pressured to keep itself a going concern in a very highly competitive environment while trying to do things right. The case, while presented in a very simplistic manner, actually represents reality and is not a stranger to us considering the number of corporate scandals that had hit the headline in recent years involving the unethical practices of business executives . The high incidence of unethical practices in modern business has prompted a stream of organizational research about morality in business (Crane 1999). In fact, industry experts such as Ernst & Young has pointed out that unethical business practice is the main culprit that precipitated the recent economic crisis which caused a lot of jobs and homes to be lost that made life difficult for everybody (Business Roudtable-Institute for Corporate Ethics 2009). The obvious disregard about business propriety is not surprising as Crane and Matten posited that business in itself has been argued to be amoral that to put ethics in business is an oxymoron because they contradict each other (2006). Business in itself as an enterprise which in pursuit of its profit motive will invariably set aside ethics as it endeavour to make profit. Actions which may be considered unethical such as lying and deception may even become permissible depending on the circumstances (Carr 1998 qtd in Crane and Matten 2007). In the case of Costas’dilemma on how to deal with his childhood friend Dionisis which is also the municipal mayor of Dorodoko as contained in the "Government, Regulation and Business Ethics" chapter of the textbook Business ethics: managing corporate citizenship and sustainability in the age of globalization, Costas issue is just one of the many undesirable business dilemma and he himself even is guilty of one, which is payment of bribes (Crane and Matten 2006). Such, this dilemmas calls for some guidelines of how should business conduct itself and how should business deal with the various stakeholders it deals with so that greedy agendas of all stakeholders could be lessened (Ashe & Nealy 2010:8). Hence, the subject of business ethics is necessary to provide guide and answers on how to evaluate certain decisions and actions in business whether they are ethical or unethical, right or wrong (Crane and Matten 2006). Deciding over how one or a business should act calls for a normative evaluation of such acts to determine if such acts are ethical or not, whether it is right or wrong. Normative meant a guideline or norm on how to evaluate and assess a certain ethical dilemma (Crane and Matten 2006). To illustrate aspects of normative ethics in resolving an ethical dilemma, the case of Costas, the contractor and Dionisis, and the mayor shall be tackled to discuss the justification and decision of resolving a certain dilemma using the normative ethical criteria. The highlighted dilemma of the case which is Costas’predicament about Dionisis insinuation about the building of the pool in his backyard falls in the, utilitarian aspect of normative ethics. Utilitarianism also defines the relationship between the two friends, albeit they were childhood friends, because their relationship is grounded more on how each party can benefit from the other (Crane and Matten 2006). Costas uses the information he gets from his discussion from Dionisis in the project that he bids for in the municipality. In turn, Dionisis, asks for Costas help when a fix is needed in his home. He also accepts bribes, masquerading as gifts from Costas in the form of covering the catering of his 50th birthday. He even insinuated for a pool to be built in his house in exchange for the next project that he will award. Utilitarian Ethic theory is “generally held to be the view that the morally right action is the action that produces the most good” (Stanford Encyclopedia of Philosophy a 2011). One of the normative ethical justifications that may prompt Costas to yield to Dionisis insinuation of building a pool is the Consequential normative ethics. Consequential Ethic theory “holds that the moral rightness of acts, which holds that whether an act is morally right, depends only on the consequences of that act or of something related to that act, such as the motive behind the act or a general rule requiring acts of the same kind”. In plain language, a business person may be prompted to choose a certain course of action or inaction based on the benefit or the avoidance of harm that may be derived from such action or inaction. In the case, using the consequential ethic as a basis in deciding Costas dilemma may prompot Costas to yield to Dionisis insinuation of building a pool in his house. He may be induced to give in to Dionisis even if he knows it is a bribe and too much, for fear that the refusal to do so may have a consequence of losing the project to the competing contractor. Deontological aspect of normative ethics meant “doing what is right”. “In contemporary moral philosophy, deontology is one of those kinds of normative theories regarding which choices are morally required, forbidden, or permitted” (Stanford Encyclopedia of Philosophy c 2011). It is based on following rules and fulfilling one’s duty. Following the deontological justification of a certain action, Costas’s may be tempted to give in Dionisis insinuation by justifying that it is his duty as a businessman and employer, to keep his business a going concern to be able to pay the salary of his employees. He may even argue that he is thinking not about himself anymore but about the employees who depends on him for their livelihood which is why he has to give in to Dionisis condition in fulfillment of that obligation. Such, Costas should decide not to build the pool in consonance with the deontological aspect of normative ethics of doing what is right. He has to tell Dionisis that it is not right anymore to do financial acrobatics to hide the cost of building the pool. This may tantamount to losing the project and Costas cutting of friendship with Dionisis, but it has to be done because Dionisis is already getting greedy with his demands in exchange of a project. In addition, Costas friendship with Dionisis is already doing more harm than good to his business because it induces him to resort to business practices that could ruin his reputation as a contractor. Costas has to remember that the various stakeholders in society are already sensitive to the ethical practice of a business and its ethical practice one of the factors that customers consider in choosing a contractor. In the long-run, this decision of Costas may be more beneficial to him because this practice will help him build a good reputation in the industry as a contractor with integrity that customers will eventually flock to him because they are confident that Costas will not cheat them. Justice caught on them (Weissman 2009). Arthur Andersen was profitable for a while but it eventually filed for bankruptcy because SEC did not allow auditors with criminal records to practice audit after they were convicted of their accounting malpractices (Buckhoff and Wilson 2008). It may be a tough decision for Costa and he may lose the project and even his friendship with Dionisis. But this decision is wiser in the long-run. With various stakeholders demanding more accountability and ethical practice from businesses, and the public being more sensitive to Corporate Responsible Management (CRM) (Ellet 2009), resorting to corrupt practices will have serious repercussion from its various stakeholders that will undermine a business existence (Crane and Matten 2006). Business organizations take care of their image because a positive company image translates to a brand which has a value in the marketplace (Fischer et al 2010). While this may not immediately register in a business’ bottom line, this value will present itself in the form of goodwill from the confidence and continuous patronage of the general public to the business. Image and brand in itself has economic value, not only the products and services that a business produces and delivers. Such, practicing ethical dealings in business is imperative not only for the sake of niceties, but ensuring that the business will remain a going concern in the long run. Bibliography Business Roudtable-Institute for Corporate Ethics (2009). The dynamics of public trust in business—Emerging opportunities for leaders. Retrieved from www.corporate-ethics.org [accessed February 24, 2012]. Ashe, Carolyn and Chynette. Nealy (2010). "Ethical Standards and Accounting Practices: Still an Area for Concern." Journal of International Business Disciplines, 5(1): 12. Buckhoff, Thomas A.; Wilson, Levon E. (2008). Ethical Lessons for Accountants. The CPA Journal. Vol. 78 Issue 11, p54-56 Crane, Andrew; Matten, Dirk (2010). Business Ethics, 2ndd edition, Oxford: Oxford University Press. Crane, Andrew (1999). Are You Ethical? Please Tick Yes Or No On Researching Ethics in Business Organizations.. Journal of Business Ethics, 20(3): 237-248. Ellet, Bill (2009). Who Knew? Ethics Matter. 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Crime Incorporated: Legal and Financial Implications of Corporate Misconduct chapter 6 “Structuring Corporate Plea and Settlement Agreement: An Exercise in Damage Control,”. Read More