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Business ethics analysis
The impact of ethical issues on business activities
Ethical dilemma business
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disclosure must be for the public interest, which means it must be of benefit to the general public. Whistle-blowers are protected by the law under the Securities Exchange Commission (SEC), the Whistleblowing Protection Act, the Occupational Safety and Health Act (OSHA) as well as other state and federal laws that protect the reporting individual from wrongful termination and/or other retaliating actions of an organization. The law protects the illegal activities reported by a whistle-blower to include, but not limited to, fraud, illegal environmental activities, wrongful conviction, insider trading, and the concealing any illegal activities by an employer (Vinten, 1994). In order for the employee to be protected under whistle-blower laws, …show more content…
The decision makers must weigh the different considerations including the impact that their actions have on the individuals concerned. It is important that one has a defined system for ethical decision making, and ideally make decisions with such frequency, it becomes so conventional that both the employee and management are able to work automatically through the required steps (Reiss, …show more content…
10). The utilitarian approach attempts to accomplish the greatest good for the greatest number while at the same time preventing the least amount of harm or suffering. It holds that every person or organization’s interests should be measured equally when making ethical decisions.
b. The Rights Approach
The rights approach is the theory that protects and respects the moral rights of individuals. This approach focuses on employees having the “right to be treated as ends and not merely as means to other ends” (SUC, 1988, para. 11). When an individual is confronted with conflicting interests of rights, the decision that has to be made is dependent on whose interest has more merit and greater priority and protects the rights of the individual or organization.
c. The Fairness
This paper is an analysis of the ethical business decision matrix developed by The George S. May Company (May), a management-consulting firm. The paper will also compare how these guidelines were used by John D. Beckett (Beckett) in his company and how the author’s firm, PricewaterhouseCoopers, LLC (PwC), uses them. The guidelines are meant to be used by employees. These guidelines are specifically a measure of moral and ethical principles tied to business ethics in acceptability of right and wrong behaviour in the workplace.
Ethical decision-making is the responsibility of everyone, regardless of position or level within an organization. Interestingly, the importance of stressing employee awareness, improving decisions, and coming to an ethical resolution are the greatest benefits to most companies in today’s world (Weber, 2015).
The method of ethical decision making which was developed by Dr. Cathryn A. Baird presented two components contained in all ethical decisions which are; The Four ethical Lenses and the 4+1 Decision process. The Four Ethical Lenses issue claims that different ethical theories and the means in which we tend to approach the situations which form part of our ethical traditions are looked at in four different perspectives. From each perspective there are different values on which to decide whether the action taken is either ethical or not and each lens also lays emphasis on determining whether the decision made is of ethical requirement. In the 4+1 Decision Process, people who are responsible for making final decisions in an organization do it using four specific decision making steps and eventually will end up with one extra decision which gives a chance to reflect. The 4+1 decision process allows the decision makers to give solutions when faced with complicated ethical issues (John Muir Institute for Environmental Studies, 2000).
The Sarbanes-Oxley Act was drafted to encourage and protect whistleblowers from retaliation after the fraud scandal that cause the collapse of Enron in 2001. In a 2010 Senate Report found that “external auditors detected only 4.1 percent of uncovered fraud schemes, “whistleblower tips detected 54.1% of uncovered fraud schemes in public companies” and were thirteen times more effective than external audits” (Turpan, 2016). Whistleblowers serve an important service to the public and are more effective than external audits. The CFAA has been used to by employers to retaliate against employees who act as informants for agencies like Internal Revenue Service or Security Exchange Commission to expose fraud. There employees, not to their financial gain, gather information as evidence of fraud by the company. With a broad interpretation of CFAA, the employee would "exceed their authority" and was "unauthorized" to access the information, therefore allowing the company to hide their illegal
Whistle blowing is a controversial topic in the professional industry. Whistle blowing is the act of speaking out against a fellow colleague or even a friend that has done something non-ethical or illegal in the workplace. A whistleblower raises concerns about the wrongdoing inside of the workplace. Employees hesitate to become a whistleblower because of the idea of becoming a snitch on fellow employees and having a bad rep around the office. This concern was lowered in 1989 with a law called the Whistleblower Protection Act that protects federal government employees in the United States from retaliatory action for voluntarily disclosing information about dishonest or illegal activities occurring at a government organization (whistleblowers.gov).
582). Ethical decision making is defined as “The process of choosing between actions based on a system of beliefs and values” (Black, 2014, p. 347). The nurse handling the ethical problem must first identify that there is in fact a problem. The second step is to acquire all of the required information related to the current situation. The third step is to come up with multiple choices and options to solve the ethical problem. The fourth step is to actually pick one of the choices utilizing sound ethical judgement. The fifth step would be to enact the made decision. The final step in the process is to reassess your decision and look for effectiveness and
In dealing with a person’s livelihood, and often, sense of self, it is of no surprise that ethical issues regarding employment practices are of great concern. The issues of employment at will and due process contracts in the workplace are among the most widely contentious in the realm of employment. Employment at will is the doctrine that employment may be ended, by either party, for good, bad or no cause at all.1 Due process, on the other hand, is the employment practice in which a person may appeal a decision as a means of receiving an explanation and the opportunity to argue against it.2 Employment at will is the standard in the majority of private corporations today and is argued for relentlessly by freedom of contract enthusiasts, however, it is becoming ever more apparent that employment at will contracts reflect the old corporate maxim where the single bottom line, profit, is accented and the well being of other stakeholders, in this case the employee, are of little or no influence. Due process should be accepted as the prevalent employment system as it shelters employees from the hostile actions of the more powerful employer, provides a stable, bilateral contract between both parties and portrays the growing ethical concerns of society.
Workplace ethics engages in judgements and collective agreements regarding a suitable guide of behaviour. The ethical decision making framework (EDM) presents, business decision is ethical or unethical.EDM provides an indication of traditional decision making process and issues that manipulate ethical decisions. Employees tend to fraud because they can experience the unfair treatments or situation that they face. Manages may ask employee to work long hours, and then they can take additional time off. Good performance leads to remunerations and appreciation managers than workers.
On November 29th, Mary Inman gave us a talk on the topic whistleblowing, which let me know more about the whistleblower activities and the whistleblower protection. According to the definition given by the website whistleblowers international, whistleblowing is someone who reveal the unethical or illegal activities within the company. The person can be current or past employee, or an outside individual who is familiar with the unethical activity. This whistleblower does not need to be U.S. citizen.
For this paper Washington Mutual has been selected to show how the ethical decision making process can be achieve. 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 can appear 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. These ethical decisions are real-life situations where they are forced to make on a daily basis. This is why it is ultimately important that all employee know the six steps to ethical decision making that the company uses.
The ACA Ethics Committee members developed “A Practitioner 's Guide to Ethical Decision Making”, which address ethical questions in the workplace by identifying problems, deliberating potential
An ethical dilemma is only examined in a situation which has the following conditions; the first condition takes place in a situation, when an individual has to make a decision on which course of action is best. The second condition is there must be more than one course of action to choose from. The third action is no matter what course of action is taken, certain ethical principles are conceded. In other terms, there is no perfect result. When defining what forms an ethical dilemma, it is important to make a division between ethics, morals, values, laws and policies.
A utilitarian approach to moral reasoning is also one where different options are weighed, although utilitarians are interested in minimising harm and maximising benefit. Importantly, utilitarians hold a universal perspective when reasoning, where they consider the impact upon all those who may be affected, who have interests of their own (Grace & Cohen 2013: 14-15).
The following five-step model can help employees make appropriate decisions when faced with an ethical dilemma. The first step is to recognize the issue. Knowing what is the root cause and the main issue can help determine what ethical issue is at hand. The next step is to get the facts of the situation. Eliminating bias opinions and knowing the information source can increase the chances of making a good decision.
There are many reasons that people decide to become whistleblowers on a company. A person may know laws are being broken, or that organizations are ignoring dangerous acts. Some whistleblowers are people that investigate organizations, and inform others of the unethical acts because others are afraid to speak out. Laws have been formed throughout the years to aid in improved protection for whistleblowers, and reassure them that reporting unethical acts to the proper authorities will not result in retaliation (Hastings, 2015).