the ethical dilemma

The effectiveness of every business enterprise is highly reliant on its code of conduct and whether or not any person working with it follows it. From the lowest-level staff to the highest-level executives, it is important that everyone treats themselves properly in order to avoid placing the company in jeopardy. In the case of Butterfly, it seems that the current issues began as the company extended its activities on a global scope. The company's growth was followed by the addition of several new employees from diverse backgrounds, and top management has found it difficult to run the activities as efficiently as it did when Butterfly was a tiny entity. There appears to be a gradual erosion of organizational ethics because of the limited control that the top management has over its operations across the globe. The president realizes that something has to be done to ensure that everyone at Butterfly conforms to the expected standards of behavior so as to protect the firm’s image and streamline its operations. In this regard, the decision to initiate an ethics committee is a wise move. Chantal is well-suited to handle the role due to her prolonged stay at the firm, as she understands how the firm operates. The paper focuses on what the ethics committee should do initiate ethical reform at the organization.

Issues that the committee should deal with

Mistreatment of Workers

Reports from some regions, particularly in Puerto Rico indicate that some suppliers were infringing on the rights of some workers by mistreating them (Fraedrich, Ferrell and Ferrell, 2013). The ethics committee needs to move with speed to ensure that the rights of all employees are respected and everyone is treated with the dignity they deserve. Employees are an important ingredient to an organization as they enable operations to take place efficiently. It is thus improper for an individual’s efforts to be taken for granted. Everyone should be treated equally regardless of their gender, age, race or religion. Chantal’s committee must send a warning to those suppliers accused of mistreating their workers. If they don’t reform, disciplinary action must be taken, including the possibility of termination of their employment.

Environmental issues

There are also reports that Butterfly’s products had brought changes to the environment in some foreign locations (Fraedrich, Ferrell and Ferrell, 2013). Environmental preservation is one of the greatest challenges the world is grappling with in the present day, owing to the risks posed by pollution. Corporate institutions have been asked to ensure effective disposal of their wastes and to institute measures to reduce air, water and soil pollution. Irresponsible conduct by firms has contributed to environmental risks such as global warming. In this regard, Chantal must ensure that her firm’s operations do not pose a threat to the surrounding environment. They should come up with guidelines that dictate the conversation measures that the firm should undertake including recycling of biodegradable wastes and treatment of harmful chemical effluents. Butterfly would thus be in conformity with the expected standards set in place to protect the environment.

Gender roles and Cultural issues

The organization has also received reports that cultural issues had arisen in some regions because most of Butterfly’s workers were women. In some regions, the primary role of raising children is left to women. These reports imply that Butterfly’s female employees had neglected their domestic roles, thus leaving their children to fend for themselves (Fraedrich, Ferrell and Ferrell, 2013). This means that the women have a poor work-life balance. Perhaps they spend much of their time at work and have little time to spare for their families. The ethics committee should conduct an investigation to confirm the amount of time the women spend on their work. They should be allowed to work for the recommended eight or nine hours a day so as to have adequate time for their children and families. For mothers with young breastfeeding children, they should be allowed to carry the kids to work. Most organizations nowadays are incorporating this trend and allowing mothers to breastfeed their children at work. They have special facilities where young children are taken care of. Chantal should direct the organization to follow suit. In some Latin nations, men were complaining that their wives earned more than they did. This issue is probably as a result of the culture in the region where men are socially viewed as the superior to women. This is a delicate issue and the ethics committee can institute community education programs to advocate for the rights of women in the community. Men should be enlightened to understand that salaries depend on one’s productivity. Through such initiatives, men can gradually appreciate that their wives’ higher salaries are deserved and merited due to the work they do at Butterfly.

Quality of products

One factor that can adversely affect a firm’s profitability is the production or selling of substandard products (Fraedrich, Ferrell and Ferrell, 2013). Customers deserve the best quality and they are keen to ensure that the products they buy meet their expectations. It is thus quite worrying that in some countries, retailers are rumored to be selling substandard and diluted products. Some of the products are sold without adequate service. This is a clear indication that Butterfly lacks adequate checks and balance measures to ensure that the products released into the market meet the required quality standards. The ethics committee must ensure a quality assurance department at all production points to bring the situation under control. All products must be inspected before release. Additionally, disciplinary action must be taken on the individuals found culpable for interfering with the quality of the firm’s products.

Structural issues

There also appears to be several structural problems at the firm affecting its performance, particularly after the Butterfly went public (Fraedrich, Ferrell and Ferrell, 2013). It was evident that employees at the headquarters were scrambling to get the attention of the shareholders. Such competition is unhealthy for the firm in the long run as different individuals may be pulling in different directions for selfish personal gain. There was also a gender gap at the top level of management. The ethics committee should move with speed to curb the unnecessary competition for stakeholders’ attention; everyone must concentrate on fulfilling the roles and tasks stipulated by their job description. A recommendation should be passed to the top level management to include more women and promote gender balance. Issues of pay cuts and reduction on working hours must also be handled professionally. The ethics committee must instruct the human resource department to streamline its operations and ensure that employee affairs are handled in the right manner and that every individual is treated fairly and justly. Chantal’s committee must also ensure that all political alliances in the various departments are dismantled as they inhibit the effective running of the organization’s operations. All departments should pool their efforts together for the overall good of the firm.

Composition and operation of the committee

The newly formed ethics committee should be as inclusive as possible to ensure that it keeps an eye on all the departments at Butterfly. With Chantal’s new role as Vice-President and head of the ethics committee, she is a better position to choose the members of her team. Priority should be given to other employees that have been with the firm for a considerably long period and those that have demonstrated impressive work ethic and high productivity. She should include the heads of the different departments to ensure all sectors on the firm are taken care of. Her team must come up with a clear code of conduct that should then be communicated to all individuals working at Butterfly. Within the ethics committee, there should also be a disciplinary team headed by Chantal to deal with all sorts of complaints. This team should be given the power to investigate individual cases and offer appropriate decisions including the dismissal of individuals found culpable of violating the code of conduct. It is also important to commission an ethics audit shortly after the formation of the committee. This step will set the ball rolling and will help Chantal and her team to have a firsthand experience of how operations at the organization are conducted.

Summary

Problems at Butterfly began when the firm expanded its operation to a global scale. Over the last few years, there have been several reports of activities that appear to be unethical. These incidents have ranged from mistreatment of workers, environmental issues, cultural issues, retailing of substandard products and unhealthy competition amongst the departments at the headquarters. As a result, it was necessary to form an ethics committee to deal with such arising matters and streamline the operations at the firm and restore sanity. The ethics committee headed and Chantal must put in place the appropriate measures to ensure that everyone working at Butterfly conforms to the stipulated code of ethics. This will be critical in helping the firm achieve its short-term and long-term objectives.







Reference

Fraedrich, J., Ferrell, L., & Ferrell, O. C. (2013). Ethical decision making in business: A managerial approach. South-Western/Cengage Learning.