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Business ethics - moral of a corporation
Business ethics - moral of a corporation
Application of morality to a corporation
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Introduction Hughes Microelectronics is a company that were found to have unethical practices during the 1980’s when handling government contracts. This was brought to light by two whistleblowers that worked for the company at the time. The purpose of this is to review four main questions concerning the situation and how it was handled ethically by the whistleblower. The first and second parts will be fairly similar what were the responsibilities of the company itself, what were the responsibilities of the main whistleblower Margaret Goodearl. Next, the conflict between the two parties will be examined and also whether or not the situation was handled ethically. Lastly the question of whether or not whistleblowing is the most ethical solution …show more content…
Hughes sought quantity while the whistleblower was focused on the quality of the product. The unethical standpoint of Hughes disregarded the required quality of product that they were supposed to create. Goodearl, from a standpoint of virtue ethics, a tradition within philosophical ethics that seeks a full and detailed description of those character traits, or virtues, that would constitute a good and full human life,(Hartman, p. 123) could not let her integrity be compromised by knowingly passing faulty products. Within this conflict of interests, and before resorting to whistleblowing, Goodearl attempted to handle the situation within the company but met resistance. With threats of retaliation as far a threats of being fired and on her status as not being a legal resident and the consequences of losing her job. Her approach to the situation should be seen as ethical even in a utilitarian perspective as she sought to do the greatest good both for the agencies receiving the products as well as letting the issue be handled internally so there would be less harm done to the company itself. When this approach had been exhausted and met with resistance at each occurrence, was when the path of becoming a whistleblower was taken. At this point it should still be seen as an ethical decision due to the fact that she had attempted multiple times to handle the situation for the greatest …show more content…
However, it may not be the best solution to be used first when dealing with unethical corporate practices. From more of a Utilitarian approach one should seek to do the greatest good. An approach that gives the company a chance to change its unethical behavior internally would follow this idea. Having the ability to change practices internally before outside intervention can have many positive effects. The company is able to make the changes, reestablish its integrity, maintain business, and retain employees. The whistleblowing option brings in outside forces that could lead to repercussions for the company which may include restitution or even being closed down. If the business is closed it effects more than just the corporate entity, all of the employees are also negatively impacted by this as well when they would lose their jobs. Sometimes however, when the company is unwilling to change its practices and do business in a more ethical manner people are left with little choice but to report to outside sources what is occurring within the business. Many see whistleblowing as law-breaking when employees are contractually obligated to
Throughout your life, you’ll face tough decisions where you'll have to decide possibly against your ethical beliefs. Ethics don’t necessarily always have to involve law abiding. It’s rather about trusting your moral path and doing the right thing. Dori Meinert is the author of “Creating an Ethical Workplace” she explains the thought behind the never black or white decision making when it comes to businesses. Can businesses truly trust those individuals hired to steer their companies? It was mentioned that last year 41 percent of U.S. workers said they observed unethical or illegal misconduct on the job, according to the Ethics Resource Center's 2013 National Business Ethics Survey. Meinert’s article was not only eye-opening but very truthful since we’ve all been faced or witnessed unethical decision making. Once employees see individuals breaking the rules and regulations others will then think it's okay, which could result in employees leaving or major hoops for companies to jump through. When we tolerate misconduct we lower productivity and diminish the reputation of a company. Meinert mentioned that if
Many organizations have been destroyed or heavily damaged financially and took a hit in terms of reputation, for example, Enron. The word Ethics is derived from a Greek word called Ethos, meaning “The character or values particular to a specific person, people, culture or movement” (The American Heritage Dictionary, 2007, p. 295). Ethics has always played and will continue to play a huge role within the corporate world. Ethics is one of the important topics that are debated at lengths without reaching a conclusion, since there isn’t a right or wrong answer. It’s basically depends on how each individual perceives a particular situation. Over the past few years we have seen very poor unethical business practices by companies like Enron, which has affected many stakeholders. Poor unethical practices affect the society in many ways; employees lose their job, investors lose their money, and the country’s economy gets affected. This leads to people start losing confidence in the economy and the organizations that are being run by the so-called “educated” top executives that had one goal in their minds, personal gain. When Enron entered the scene in the mid-1980s, it was little more than a stodgy energy distribution system. Ten years later, it was a multi-billion dollar corporation, considered the poster child of the “new economy” for its willingness to use technology and the Internet in managing energy. Fifteen years later, the company is filing for bankruptcy on the heels of a massive financial collapse, likely the largest in corporate America’s history. As this paper is being written, the scope of Enron collapse is still being researched, poked and prodded. It will take years to determine what, exactly; the impact of the demise of this energy giant will be both on the industry and the
Which allows employees that have observed any illegal acts or acts that raise concern to be able to report to a company hotline that allows that individual to report with the secrecy of the act without fear of retaliation from the company. Generally, whistleblowers are employees that are dedicated to the company and is a model employee. They do not have any intentions of hurting the company, but rather to improve the company. By having an anonymous reporting method of any situations allows employees to feel that the company values their opinions and actually care what is happening within the company. Another reason that this is a plus is because this keeps everybody honest, since there is an open door policy of reporting any illegal acts. The best way to implement this protocol is to educate employees on what the purpose of the program is. Then train the employees on the simple reporting procedures and certify that everything is clearly written and efficiently understood. When the complaint has reported an Ombudsperson or manager will report the matter to upper management to conduct an internal investigation. When all is done and the complaint is true, then actions will be done to correct the problems. In this case of the secretary being fired for refusal to prepare false expense reports for her boss, there is no need for her to be terminated instead this allows the creation of the whistle-blowing hotline for the company to investigate any illegal acts within the
When someone is unethical, they lose their moral way. Ethics is a “set of moral principles” (Merriam-Webster.com.) These principles guide our personal decisions. But when more than one individual loses sight of their moral judgement, a whole company can go down. Moral conduct can be applied to organizations. A good movie that shows the difference between an ethical, privately owned organization and a larger, sleazy franchise is Good Burger. Good Burger shows the difference between a small shop, Good Burger, and a larger franchise, Mondo Burger, and the way they do business.
Their organizational initiatives are often self-serving; however, the emerging workforce isn’t motivated by selfish managers. This selfish behavior often turns into unethical conduct. Unethical dealings in the workplace are always wrong. It is crucial to promote ethical behavior. Everyone must understand that once caught, unethical behavior is not just a problem for those directly involved, it is everyone’s problem.
Although Hollate introduced a compliance program and code of conduct when it went public, the programs were put on “the back burner”. This outcome is not surprised for that the company does not pay attention to the programs. It is, therefore, important to “reinforce the values” and “employee a boundary system when actions are inconsistent with the code of conduct” for the purpose of early detection. Tyco provides a good example after its scandal, by initiating “mandatory annual compliance training for all its employees worldwide” and creating the Tyco Guide to Ethical Conduct to familiarize employees with company expectations and help them make ethical decisions. As tips is the most useful method for internal and external sources to detect frauds, the whistleblower hotline should be well communicated with encouragement on reporting any suspicious activity. In addition, to improve the effectiveness of the compliance program and code of conducts, Hollate should implement management monitoring and evaluation on a regular
Strong internal rivalry between the after-merged Boeing and McDonnell Douglas Corp is also contributing to company’s ethical scandals. As competition between each party gets stiffer, employees might tend to resort to ethical breaches to gain competitive advantages so as to outshine each other.
The act of whistle-blowing is an ethical issue that all employees have the right to. Whether they decide to make the corrupt information known publicly or anonymously, the information they provide can protect everyone involved. The ethical and moral sides of whistle-blowing can go both ways. In order to protect the customers, patients, or consumers of the harmful products the companies are offering, employees that have morals and feel the need to make the truth be known have an ethical responsibility to do so. Issues of being a whistle-blower are more controversial than the responsibilities of the employees doing so. When a whistle-blower takes action, they expose information from their company that it not meant to be public. They basically turn their backs away from their company and colleagues by revealing the truth. When surveying these issues, an employee who is torn by exposing information or keeping silent must decide whether it is more ethical to stay loyal to their organization or to the organization's
The purpose of this paper will be to identify and describe ethical tactics used in the Jeanne Lewis case. The writer will also discuss Jeanne Lewis's ethical behavior in light of her decision to work with her employees until she was confident in the strength of her team.
Many other businesses may not want to do business as the company was involved with immoral behavior. The unethical business practices of the company will also gain exposure in the media and to the public (Nicol, 2015, n.p). Employees no longer keep unethical activities of the company to themselves. As a whistleblower, they may be perceived as a traitor, but in this case the senior executives are being traitors. They are taking money from immoral behavior and tarnishing the name of the company (Nicol, 2015, n.p).
Organizational Ethics Issue Resolution Paper Introduction For this paper, Washington Mutual has been selected to show how the ethical decision making process can be achieved. When it comes to business ethics in the workplace, Washington Mutual has designed what can be considered a well balanced workplace with behaviors that are aligned with their moral values and business ethics. Business ethics are sometimes depicted as resolving conflicts where one option appears to be the correct choice. There are many different ethical dilemmas that are faced by managers and leaders everyday that are highly complex and have no clear choice or guidelines to assist in making the choices for resolution. There are times when an employee has to decide whether or not to cheat, lie, steal, or break their contract.
Two different journal articles question the act of whistle blowing as a whole. In today's society, whistle blowers can face extreme public. This happens because they tell the public of the harm an organization is doing. They can also be blacklisted by their employer and can be out of work for several months or years if the act of whistle blowing is committed. The first journal titled, "Internal" Business Practices?: The Limits of Whistleblower Protection for Employees Who Oppose or Expose Fraud in the Private Sector, by David Aron talks about the limitations that whistle blowers face. He argues that whistle blowers should be protected by the law because public safety should be at the forefront of all business organizations. John Stuart Mill utilitarianism offers the best idea that agrees with what the author is saying within this journal entry. John Stuart Mill utilitarianism offers the best because whistle blowers can bring the greatest number for the greatest good by protecting the public from potential harm. This also could also be a good t...
In conclusion, it is evident that employees who are justified in blowing the whistle should not suffer retaliation. What ought to be done to protect whistle-blowers from this fate is less clear. A plausible case can be made for the legislation in this area, but the difficulty is in drafting laws that achieve a desired result without interfering unduly in the legitimate conduct of business.
By inducting ethical business practices, the need for whistleblowers will not be needed, but there is always someone that crosses the line. Therefore, by encouraging whistleblowing and supervised departmental and corporate performance concerning ethical questions. Whistleblowing is an ethical procedure when there is clear evidence of serious evidence, that will harm the public and the blower has tried to find an internal solution to effect change. The whistleblower who is associated with the unethical activity has a moral responsibility to do the right thing. Companies always know there is a possibility that the whistle will be blown, in this case the obstacle is created by knowledge that their employees stand to gain an advantage from uncovering corporate misbehaviour and thus they may be proactively looking for other people outside the organization to inform the authorities.
Morality is the biggest and best reason for this act because people generally want to do the good moral thing. If a person should have to blow the whistle on a company they should know that for every action there is a reaction, and the reaction of whistle blowing might lead to getting fired. One of the most controversial types of whistle blowing is that of impersonal. If a company is making products that are unsafe because they are trying to save a few dollars, an employee could see this as immoral and tell the public about it. The whistle blower would do this based on Kant's theory. It would be following the moral law to do so. If a company is cutting corners and hurting others, it would be morally unacceptable not to blow the whistle on this company. To knowingly let innocent people get hurt because of something that you could have stopped is morally wrong. A lot of people would blow the whistle on a company that is making unsafe products, but not all. A number of people would not inform the public of the company's wrongdoings. They would not do it out of fear that they might loose there job or even be blacklisted from the industry altogether. If they are not fired they will most likely be outcasts at their job and looked over at promotion time.