Pacific Gas and Electric - Decision-Making - Case Study Example

Business Ethics Name: Institution: Executive summary In this research we will focus on a given case study so as to see how decision making has to be made with ethics so as to avoid any unnecessary issues. The case study is on Erin Brockovich film which when being made was based on a true story. The woman is a single mother who is struggling to make the ends meet. She begins to work at Ed Masry’s law firm through an unfortunate connection by an accident. On her duties, she starts to investigate on medical cases and more specifically a company based in Hinkley by the name of Pacific Gas and Electric (PG&E). In the process she uncovers several details of the community. In her investigations, she realizes that the community’s ailment has a connection with poor infiltration of water that is done by PG&E. She exposes the problem and later it is rectified and the community is paid for the damages caused by the lack of duty of care on the part of Pacific Gas and Electric (PG&E). Table of Contents Executive summary 2 Table of Contents 3 Introduction 4 Duty of care 4 Utilitarianism 5 Decision making 5 Safety of workers 6 Recommendation 8 Conclusion 8 References 10 Introduction Throughout the history of business, ethics has, and will always, be a sensitive issue. It is always necessary to observe the business ethics and the code of conduct to the employees and not only to those in higher offices. Business managers are, on a daily basis, faced with a new challenge on a contentious issue that put the credibility of the said manager to test. In retrospective, the mater that concerns ethics is further compounded and specifically brought to a larger test by the fact that there is no agreed upon definition of what ethics and therefore every manger and business as a whole develop their own ethics to be followed in the business. Therefore, in this perspective, the ethics of an action can only be defined by an individual or society that a person operates (Belak, 2005). This is specifically because, what one individual might define as of an ethical nature might be against the ethicality of another individual depending on the environment. The matter can thus be compounded in this case that one is a leader or manager of a business. It is easier to focus on the manager or the leader of the business since all the major decisions must be made by the manager. It is also because much of responsibility is expected of the manager in the definition of what ethic is (Ahmed, 1998). Duty of care The situation of PG&E of lack of proper care when infiltrating the water can be termed as a volatile situation. In this perspective, this paper aims at looking into ethics concerning the company’s decisions. The decisions also revolve around letting workers decide whether to work for the company or not since they know the workers are desperate and fear losing their jobs and hence can do anything to keep their jobs. Utilitarianism According to the theory of utilitarianism, a decision or action is considered to be right, or wrong, depending on outcome. If the outcome, or consequence, from an action is the most good that can be derived, then the action is termed as being right. In this perspective, an action that gives an outcome which is lesser than the best possible outcome is considered as being wrong or unethical (Belak, 2005). In this case, the company’s decision to try and stop investigations because they know they are on the wrong can be termed as unethical. This is because not all the decisions that are made decisions that have the best outcome. In this aspect of this decision made, the decisions cannot be termed as being optimific. An optimific decision is one that is able to bring out the best good. Stopping investigations by PG&E does not in any way have a good outcome to the community and hence only the company that might benefit (Pučko, 2000). Decision making In the case of letting workers decide on whether to work in the most dangerous part of the company, the workers might decide to continue with the job only because they are desperate of losing their job which is their only source of income. If they allowed people to leave the job to seek medical attention, it would mean on the part of the company that the company would lose some working hours, which might be a necessity, and hence it would lag behind all the other competitors. As the movie continues we see a man who continues working and specifically painting a tank while with a severe nose bleeding. This is not only dangerous to the worker himself but also the users of the water from the tanks he is working on. Therefore, the reason for deciding to continue despite the dangers involved when working in that part of the company is very clear as desperation. It is the duty of a business’s manager to ensure that every part is running in the required manner and pace and no any kind of irregularity is involved. If the managers were extra careful the worker would not be allowed to worker while still sick. The decision to let workers decide on their working mode is thus unethical. The decision could end up slowing up the whole operations of the business. In retrospective, the business’s operations might grind to a halt. Thus, in case the workers decide to continue working while still sick, the outcome gotten out of the decision cannot be said to be optimific. However, the decision might have an unforeseen outcome. This can be in the case that dangerous parts of the enterprise have higher remunerations. Safety of workers In the case of protective clothing during the work which seems to be adhered to by the company as seen in the film, the company can be said to at a complete err. According to the law, it is necessary that workers wearing protective clothing at their place of work. This would reduce the risk of accidents and especially for those working on tanks like the man painting. It is also the work of the manager to ensure that workers wear their protective clothing at work. The manager is also supposed to provide additional clothing is places where it lacks. The decision to let workers decide on whether to wear protection clothing at their own discretion can thus be said to be unethical. In this perspective, the manager is supposed to ensure the overall safety of all the workers in a business entity. Accidents in the entity might cost the firm huge amounts of money in terms of payment for damages and treatment expenses. Thus, the decision cannot be said to be one that gives out the most good. In the real sense, the decision can be said to bring more harm. The harm arises in the sense that this decision incurs more costs thus increasing loses. The decision can be said to unethical; based on utilitarianism definition of ethics. The decision to give $250,000 for the Jensen’s home in Hinkley by the company is unethical and especially based on the fact that it refuses to take up responsibility of the harm they have caused. The decision by the company not to pay up any medical bills that result from the diseases and the medical conditions is also unethical. Ethically this company should convene a meeting with representatives of the people affected that is the community and lay a way forward. “An assumed employee from PG&E calls to threaten the safety of Erin and her children because PG&E know that she has valuable information that could prove their fault in the health issues of Hinkley community members” this is also a very unethical decision on the part of the employee. Threatening the safety of Erin and her children does not solve the predicaments that are facing her. Erin on her investigative duty continues despite the threats and that shows a decision well and ethically made. This is a decision that has been made to help the whole community from their problems. Charles Embry who approached Erin toward the end of her investigation is seen to be a person who makes a great decision and one that is not based the foreseeable future but a decision that would in the long run positively affect the community at large. He discloses crucial information to the investigator and does not fear losing the job. Though it is unethical to keep documents that were supposed to be destroyed, he later used them for the benefit of the community. It is evident that the lack of proper decision making by the management of the company too many lives have been lost like that of Charles’ cousin. Recommendation I would recommend that all the business owners and potential investors to take keen on upholding business ethics as it through doing that that the business prospers. In addition, business management should treat the workers with respect including proper pay, observing policies on safety of the workers. It is the work of the management of the business to ensure that safety standards are maintained in the work place at all times and also to ensure that proper standard of care is observed. Thus, shunning the responsibility and letting works decide on themselves which can be seen to be a neglect of duty as well as an abandonment of duty. Management of any business should take it upon themselves as their responsibility to provide the workers with their requirements and hence should be treated properly as they contribute a lot to the success of the business. All the decisions made by the management should be done following the business ethics to help improve the productivity of the business entities. Also, workers also should be keen in following their rights and ready to fight not to be oppressed and not fear to lose their jobs. It is also the right of the workers to report to the relevant authority of any mishandling by the employers. Conclusion In conclusion, based on utilitarianism theory, the decision to let workers decide on their safety and the overall lack of proper care for the community surrounding a business can be said to be unethical. In addition, workers might end up getting hurt due to the negligent acts of the manager. Also, workers should not be prioritized based on their relationship to the managers (Duh, et al, 2007). Workers also should be granted permission by the company to do what they enjoy and are interested in doing if only it is not infringing on the rights of another. Ed Masry’s law firm allowed Erin Brockovich to do investigation even when they properly knew that she did not have law background. However, she was impressive on the work that she did and eventually justice for the victims was found. Overall, it is the work of the management of the business to ensure that all the decisions are properly made and following the ethics of the business and the community at large and especially safety procedures and standards are maintained. In the case of utilitarianism, the decision is one that does not give out the most good. Thus, it can be termed as being unethical (Anker & Kamin, 2011). References Anker, T. B., & Kamin, T. (January 01, 2011). Health branding ethics. Journal of Business Ethics, 104, 1, 33-45. Duh, M., Belak, J., Tominc, P., & Rebernik, M. (January 01, 2007). Some aspects of business ethics in family enterprises in Slovenia. Organizacija, 40, 198-206. Ahmed, M. M. (January 01, 1998). Cultural and contextual aspects in business ethics: Three controversies and one dilemma. Journal of Transnational Management Development, 4, 1.) Pučko, D. (January 01, 2000). Business ethics in the Slovenian economy. Management, 5, 1, 1-20. Belak, J. (January 01, 2005). Business ethics of a family enterprise =: Etika družinskega podjetja. Naše Gospodarstvo, 51, 111-115. Read More