Ethical Issues in Management - Assignment Example

ETHICAL ISSUES IN MANAGEMENT ……………… ……………………. ……… Introduction Discussions regarding business ethics and corporate social responsibility seem to have gained significant momentum in recent years since some managers and corporations responsible for it have brought it to the frontier news. Now, for any type of business, no matter how small or large they are, ethics and social responsibility are extremely important as well as highly critical factors that can easily challenge the smooth running of the business. From the perspectives of business ethics, organizations and managers who are referred to as ‘enlightened capitalists’ (Trevino and Nelson, 2007, p. 7), are increasingly becoming aware of code of ethics, ethical practices and their relation to the community as a whole that it works in. This piece of research work presents a brief explanation of moral and ethical issues faced by managers in relation to the termination of employees from their jobs. This paper outlines the relation between ethical managerial practices and social issues related to termination with case analysis ethical dilemma that an organization and management faced due to termination. Moral and Ethical issues associated with Termination When a person’s job is involuntarily terminated for any reason, the loss of job causes significant distress, regret, bitterness and financial loss as well. All employees are rightful not to be unfairly or unjustifiably dismissed from his job (Davenpor, Crotty and Torres, 2000, p. 7). When an employee is terminated from his job for no apparent reason, or for a reason which cannot be justified, it is more likely to cause ethical and moral issues. A manager’s most important duty and responsibility is that he should bring good people to the organization in such a way that those good people will stay long and satisfy with their jobs (Trevino and Nelson, 2007, p. 155). The social set up and legal systems, though it can be different from country to country, have specific views regarding what is right and what is wrong both morally and ethically. For instance, Kleinig and Smith (2001) described that the United States and many other countries are founded on a strong belief in and commitment to the individual rights and their freedom and therefore these rights are moral acclaims as well as forces of law (p. 205). As there are specific views regarding ethical and moral practices, it is more likely that an employer’s act of terminating an employee can cause moral and ethical dilemma if employer’s act cannot be justified according to the general social and legal perspectives. Workers are right to be treated fairly in the workplace. No matter whether this has been stated in the employment policy or code of conduct of that particular firm, because, it is implied that workers should be treated well and fairly, with no discrimination and bias among them and it is widely known of the legal requirement as well. If ethical practices are applicable to everyone, then all individuals within the workplace possess those rights equally (Kleinig and Smith, 2001, p. 208) and therefore individual should not possess advantages over others in the provision of moral rights. If an employee is terminated for a justifiable, legal and ethical cause, it doesn’t make issues of ethics. But when an employee is terminated for an unjustifiable cause, it is not only causing him to lose his jobs, but also causing others possess an advantage over him. Kleinig and Smith (2001) emphasized that fair treatment has become highly significant in terms of universality of moral rights within the workplace. Its basic element is that everyone in the workplace should have equal access to the jobs and equal consideration on the jobs. Organizations should not discriminate against people based on their sex, race or ethnicity, economic background or religion. Furthermore, fair treatment also requires that employees shouldn’t be dismissed without cause (p. 208). Trevino and Nelson (2007) stated that even though ‘cause’ can be different from company to company, a number of general things like assault, cheating on business related matters like reporting of financial statement, forgery, fraud and gross insubordination are considered to be acceptable ‘cause’ (p. 161). Unsatisfactory performance of duties, criminal activity, drinking or using drugs on the job, disruption of organizational operation without a valid cause, physical or mental incapacitation are also considered as ‘cause’ that employees can be fired for (Kleinig and Smith, 2001, p. 208). Social issues and ethically responsible management practices Trevino and Brown (2004) argued that there are two dimensions of moral intensity; they are magnitude of consequences and social consensus. An individual tends to identify an issue as ethical issue to the extent that a specific decision or action is expected to create harmful consequences. Individuals also view things as ethical issues to the extent that relevant others in social context view the same thing as ethically problematic (p. 70). Manager’s activities are more likely to create social issues if they are ethically problematic according to the view of the relevant people among the society and therefore managers are expected to be aware of social contexts and consequences of certain actions within the organization. Organization is not isolated from the community and therefore organizational or management practices can directly reflect the society. It can cause social issues if managerial activities, for instance termination of an employee, are not justifiable according to the prevailing social perspectives. Managers are responsible for employee supervision and fair-treatment of employees and therefore it is critical that they should discuss the ethical implications of decision-making to the employees who are in ethical dilemma (Trevino and Nelson, 2007, p. 152). In order to avoid social issues that may arise due to unethical practices of management, the organization is responsible to create a corporate culture within the firm so that employee engagement can be enhanced by making employees more committed (Trevino and Nelson, 2007, p. 152). Employee engagement can reduce ethical dilemmas and misunderstanding among employees regarding decisions and managerial actions. Committed and dedicated employees are more likely to adjust with organizational rules and policies are thus lee likely to indulge in practices that breach contracts and policies. Language is always influential in every aspects of one’s life. Similarly, language that a manger uses can have significant impact on the moral and ethical awareness of the employees. Trevino and Brown (2004) suggested that managers are expected to use moral languages in the workplace. For instance, if a manager uses ‘stealing’ music (rather than downloading) and ‘forging’ documents (rather than signing) the employees would be more likely to think about these issues in ethical terms (p. 70). Ethical Dilemma related to Termination Egelko (2004) reported that Hewlett-Packard has terminated an employee who posted anti-gay passages from the Bible at his work cubicle in protest of the diversity policy of the company. The employee had taken the issue as religious discrimination and has taken the case to the court. The court has concluded that the employee- Richard Peterson, who had been working in HP’s customer support division for more than two decades, was not a victim of religious discrimination (articles.sfgate.com). The court concluded that Hewlett Packard had right to fire an employee who posted anti-gay passages from the Bible because the company had implemented diversity policy developed in a staff meeting and has put up posters showing different employees like ‘black, old, gay, hispanic alongside a slogan ‘Divesity is our strength’. The employee, Peterson, had claimed that Hewlett-Packard had unfairly singled him out for punishment while allowing employees to show religious symbols and posters (articles.sfgate.com) The above case shows that employer has right to fire and terminate an employee for justifiable ‘cause’ like breaching the policy of diversity. The employee who has posted anti-gay poster based on Bible quote has been fired because he indulged in religious discriminating activities and therefore HP has taken appropriate action which is not an ethical or moral issue. Conclusion This piece of research work has highlighted ethical and moral issues faced by managers mainly in relation to the employee termination. The responsibilities of managers to create ethical awareness among employees and necessity of using ethical languages are also detailed in this paper. The paper has outlined a case example of ethical dilemma that occurred between HP and its employee Peterson, giving legal conclusions taken by the court and ethical perspectives of the same incident. References Davenpor G, Crotty M and Torres P, 2000, Termination of employment digest, Volume 1; Volume 47, Illustrated edition, International Labour Organization Egelko B, 2004, Fired HP employee loses appeal over anti-gay signs / Court rules Idaho man wasnt a victim of religious discrimination, articles.sfgate.com Retrieved from http://articles.sfgate.com/2004-01-07/news/17410063_1_diversity-policy-anti-gay-postings Kleinig J and Smith M L, 2001, Discretion, community, and correctional ethics, Illustrated edition, Rowman & Littlefield Trevino L. K and Brown M.E, 2004, Managing to be ethical: Debunking five business ethics myths, Academy of Management Executive Trevino L K and Nelson K A, 2007, Managing business ethics: Straight Talk About How To Do It Right, Fourth Edition, John Wiley and Sons Read More