ethics in business

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Introduction


Despite the fact that corporations have codes of conduct, employees frequently behave differently in day-to-day activities.

Background


Responses from three full-time employees of an organization in the scenario where a manager disregarded the set regulations in order to save organizational costs are included in the interviews conducted for the article's appendix.

The Company's Code of Conduct


The company's code of conduct offers a methodical way to observing the firm's ethics and taking into account the tasks that employees execute as part of their obligations and responsibilities (Carr 87).

Manipulation of Ethical Concepts


The majority of employee instances would rely on the interview's observation. However, the manipulation of the ethical concepts is sometimes practiced in the cases where a breach of the ethics was done with good intentions. Therefore, it entails the application of the idea that "the destination justifies the means."

Disagreement on Action


There seems to appear a case of disagreement on the action to take and the application of the code of conduct in this case (Ambrose, Arnaud, and Schminke 326). Of all the three interviewees, two of them agree while the other one disagrees.

Reasoning behind Disagreement


The disagreement, in this case, is the use of ethical approaches in handling the case. Both John and Harriet decide on reporting the incident to the necessary authorities in the organization. Susan, however, claims that she would not report the case due to the intentions behind the fraud case. The manager has good intentions for the company, and in the process, he also benefits (Bell and Howell Information and Learning Company 129). These are the reasoning behind Susan's claims that she cannot report the case. However, the other two recognize the intentions and the benefits associated with the fraud, but they do not agree on the breach of ethics which in this case, they perceived as corruption.

Level 2 of Moral Development


A portrayal of the level 2 of healthy moral development is seen to be applied by the respondents in this case (Gibbs 132). That entails the use of law and order as the base for the decisions made. The defendants, John and Harriet base the reason why this case is wrong and should be reported by basing it on the application of the laws and authorities of the organization (Crain 120). These ethical considerations reveal a case of general moral development based on level 2, stage 4. It is the reason they use reasoning such as "it is against the company regulation despite the intentions."

Recommendation and Conclusion


Both John and Harriet portray a similar pattern in their responses that the fraud case is wrong and should be reported, and they follow to give reasoning based on the law to back their arguments and a reason why the case should be declared (Trevino 138). Based on these respondents' views, the recommendation on the firm is that it ought to have absolute rules and stipulation. Therefore, such a case should be declared as fraud irrespective of the intentions behind the acts. Nevertheless, every organization needs to establish a way of investigating such matters before deciding on what to do with the employees (Watkins 10). Well, it might be a must for the workers to follow the rules to the letter; however, there should be a way to consider how to punish such offenders. Otherwise, failing to consider the effects of such behaviors at the management level might lead to excessive punishment to the offenders even if the mistake is entirely wrong. For example, one might have undergone blackmail by outside stakeholders such as the suppliers to sign a contract without following the due process or else; they expose the exuberant profit margins that the organization has been making given the relatively high prices. Therefore, there is the need for a select committee that can do further investigations and come up with the necessary steps to deal with such employees.

Work Cited

Ambrose, Maureen L., Anke Arnaud and Marshall Schminke. “Individual moral development and ethical climate: The influence of person-organization fit on job attitudes.” Journal of Business Ethics (2008): 323-333.
Bell & Howell Information and Learning Company. “A reason debate featuring Milton Friedman, Whole Foods’ John Mackey, and Cypress Semiconductor’s TJ.” Rethinking the Social Responsibility of Business 2007.
Carr, David. Educating the virtues: An essay on the philosophical psychology of moral development and education. Routledge, 2011.
Crain, W.C. “Kohlberg’s stages of moral development.” Crain., W.C. Theories of Development. Prentice-Hall, 1985. 118-136.
Gibbs, John C. Moral development and reality: Beyond the theories of Kohlberg, Hoffman, and Haidt. Oxford University Press, 2013.
Trevino, Linda Klebe, et al. “Managing Ethics adn legal Compliance: What Works and What Hurts.” California Management Review (1999): 131-152.
Watkins, Sherron S. “Ethical Conflicts at Enron: moral responsibility in corporate capitalism.” California Management Review (2003): 6-19.

Appendices
Responses
John
Question 1: What would you do and why?
I would report them to the relevant authorities. In most cases, we do this reporting to the human resource, so these are where I would report. Despite the good intentions on reducing the cost of acquisition, the manager is playing a case of frauds which is not approved by the organization. This might imply that they are deeply corrupt and digging further in the case can reveal that they probably encountered the supplier through fraudulent means.
Question 2: Does your employer have a code of conduct?
Yea we do have a code of conduct.
Question 3: What type of ethics training does your employer offer?
Ethical training in this company is majorly based on the decision making and how to base them on the organization culture. Values are encouraged such as honesty and hard work.
Question 4: Is the training face-to-face or on the computer?
The training is on a computer system where at the end of the training, a test is done on ten questions involving decision making and handling of sensitive information.
Question 5: How long does the training last?
The training has no definite time it is supposed to take. However, one should have completed it within ten weeks into the organization.

Susan
Question 1: What would you do and why?
I would not report them. Despite this being against the organization policies, it raises and saves the company of costs. However, a warning to the individuals would be sufficient for them to know that people are aware of the case. Any person would do the same provided it is with good intentions of the organization.
Question 2: Does your employer have a code of conduct?
Yes, they do.
Question 3: What type of ethics training does your employer offer?
Most of the training is based on free will and how to use it in decision aiming in the organization.
Question 4: Is the training face-to-face or on the computer?
Computer based.
Question 5: How long does the training last?
Two days.

Harriet
Question 1: What would you do and why?
The organization policies and code of conduct dictates that such activities ought to be reported so that I would report them. This is a form of fraud in the organization and entails some foul play and corruption. Corruption being a vice in the organization and the society, I would make sure they are known.
Question 2: Does your employer have a code of conduct?
Yea, I guess there is one. He has been here for a long time.
Question 3: What type of ethics training does your employer offer?
Decision making a protection of sensitive information of the company is the base of the training on ethical conduct in this business. However, some more emphasis is encouraged on the relationship between the employees.
Question 4: Is the training face-to-face or on the computer?
Most of the training is done in a face to face forum or boot camps where the employee groups are involved in the process.
Question 5: How long does the training last?
Most of the boot camps take a week on every new batch of employees in the organization.

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