The paper 'Ethics in Management" is an outstanding example of management coursework. Ethics is an important issue in many areas of life. By setting certain ethical standards, people are able to make sure that their conduct and behavior are regulated, thus safeguarding their general wellbeing. One field in which ethics is important is business. Business ethics is an important issue for all organizations because it determines the kind of behavior that a company will tolerate from its members. Accordingly, the standards set in the field of business ethics play a key role in influencing the organizational culture of a firm.
In the case study presented (Ethical dilemma: The padding that hurts), the subject company is engaged in a major ethical issue revolving around one of its senior members. An internal auditor has just discovered that the executive has been misappropriating funds and seeks to take the necessary action. He informs the Human Resources Director about the situation and they both report the executive to the CEO. At this point, the whole situation becomes complicated because the senior executives in the company do not seem to take issue with the actions of their colleagues.
This is partly because some of them are friends with him. Through the ensuing debacle, several issues regarding business ethics arise. The key among them is the impact that unethical behavior could have on the morale of a company. Unethical behavior within a company tends to have a negative effect on the firm’ s morale. Scope of the Issue The problem in this case study revolves around the unethical behavior of the senior manager in the subject firm. An internal auditor has discovered that the manager regularly inflates his expenditure when he goes on business trips.
Through his investigations, the auditor finds out that the manager may have stolen tens of thousands of dollars from the firm. The auditor finds this to be a serious issue because the manager is in charge of millions of the company’ s money. Accordingly, he raises the issue with the Human Resources Director. Problems arise when the two report the matter to the company’ s CEO who happens to be a friend of the manager. The CEO does not find the issue to be serious because the company pays the manager much more.
Similarly, the organization’ s auditing committee and the board of directors find the manager’ s conduct to be a trivial issue. However, they still took measures to stop the activity, though they did not punish the manager himself. Though the auditor, raised an issue with the fact that the manager was not punished, the firm would not relent. In the end, the auditor accepted the firm’ s position on the matter and relented. Various ethical issues are raised in this case.
One concerns the seriousness of unethical behavior. The firm’ s decision to take the issue lightly was questionable. The senior executives decided to take the problem lightly because the amount of money involved was relatively low. However, the auditor and Human Resources Director were adamant that the manager’ s misuse of small funds made it possible that he was doing the same with larger amounts of money at his disposal. Another ethical issue that is evident in the case concerns a conflict of interests. In the case study, the CEO was unwilling to deal with the matter because the senior manager was a close friend of his.
Similarly, executives on the auditing committee and the board of directors may have considered the problem a trivial issue mainly because they were well acquainted with the accused. There is also a conflict of interest concerning the auditor who raised the issue. When he first raised the issue, the auditor may have been aware of the possibility that his employment was at stake. Resultantly, he relented on the issue after the firm’ s decision had changed the scenario such that his position was no longer at stake and his responsibilities had been increased.
Lastly, a key ethnic issue that the case study presents concerns the impact that unethical behavior could have on a firm’ s morale. While the management in the case argued that morale would be unaffected because of the fact that few employees knew about the incident, there was still a slight possibility of the debacle having negative implications on the firm.
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