Thesis
This paper is on application of ethical theory to the case of Great Builds a multinational FTSE 250 engineering company which specializes in design and operations of heavy infrastructural projects. The paper will discuss the important stakeholders and two ethical issues in the first section and will evaluate this case with use of two ethical theories. The final section will discuss the actions which can be taken in this situation.
The important stakeholders in this case are non-executive board member Veronica Singh and CEO, Mick Handsome. Veronica Singh MBE is a charter engineer who joined the board of Great Builds a multinational FTSE 250 engineering company which specializes in design and operations of heavy infrastructural projects. Mick Handsome is CEO of Great Builds, who was hired by the company in midst of allegations against the company of being involved in bribery case of large scale and long period of frail financial performance. He as the CEO has been highly successful in changing the financial climate of the company. Also, an anti-bribery policy was implemented effectively and his work and efforts have helped company in lifting its service quality. Great Builds is currently in much better financial shape in comparison to earlier years. Mr. Handsome has also been accused of Sexual harassment at workplace with rumors of his misdemeanor reaching tabloids and three complains being made to the Human Resources for his physical and verbal harassment.
The United States Equal Employment Opportunity Commission states "It is unlawful to harass a person (an applicant or employee) because of that person’s sex. “the definition of sexual harassment has expanded from quid pro quo to include the creation of a hostile work environment; the behavior of same-sex harassment has been included within the prohibitions; employers have been warned that they must adopt grievance procedures; and employers have been held liable for offending conduct even when they claimed to have not been aware of it" (“Marshall, pp 336-340”). The first ethical issue of Sexual Harassment at workplace has ethical and legal implications. With Mr. Handsome’s brooding reputation as a ‘Ladies Man’ and rumors of his unpleasant behavior with female employees further adding to his reputation and growing concern over his personal conduct. Veronica Singh also got informed about Mr. Handsome’s inappropriate behavior with younger female employees in social functions by her closer friends. To add to these rumors, Mr. Handsome was caught with women escorts in a dubious party and a story was published in a newspaper. Finally, in her latest visit to the headquarters Veronica Singh was informed by the Human Resources Head about some complains of female staff regarding Mr. Handsome’s physical and verbal abuse. These reasons and cases have highlighted that Mr. Handsome is practicing Sexual harassment at workplace.
Bribery is defined as giving or receiving a financial or other advantage in connection with the "improper performance" of a position of trust, or a function that is expected to be performed impartially or in good faith (“Vogl, pp 31”). The second ethical issue which has been discussed in this case was Bribery. As mentioned in the case the company in midst of allegations against the company of being involved in bribery case of large scale and long period of frail financial performance. After appointment as company CEO he was successful implementing anti-bribery policy in the company and his dedicated commitment for improvement of service and quality has helped Great Build develop and build competitive strength. Involvement of organization in bribery and fragile financial performance establishes illegitimate and unethical modes of profit accumulation. Unethical practice conducted by a company deteriorates company performance and provides room for raising legal issues by means of lawsuit against the company (Beauchamp, Bowie, Arnold, pp. 25-31). Due to these reasons Great Builds management hired Mr. Mick Handsome for the position of CEO, he is well known for his strong track record and management experience in helping companies out in similar situations. His exceptional record and experience in past is significant proof of his capabilities to lead Great Builds out of their unhealthy condition.
Two ethical theories which can be construed with this case are Deontology and Rights Theory of Ethics. The evaluation of relation of these theories with this case is mentioned below:
According to Ridley, Theory of Deontology states that “People should adhere to their obligations and duties when analyzing an ethical dilemma. This means that a person will follow his or her obligations to another individual or society because upholding one's duty is what is considered ethically correct” (“Ridley”). In this case, Veronica Singh needs to undertake decision on the complaints of sexual harassment which has been reported to the Head of Human Resources against the company CEO Mr. Mick Handsome. She as the board members needs to decide the fate of the CEO as her duty while addressing the ethical dilemma. Despite the exemplary job done by Mr. Handsome if he is proven guilty on the counts of sexual harassment, the company will need to take the ‘ethically correct’ action as it is their duty to so.
The basic principle of Deontology is Fulfillment of duty towards themselves and other persons. “What makes something good or bad, right or wrong, is that it conforms to some (rational) duty”(“ Sadler”). In this case, the rational duty of Veronica Singh is to carry out an investigation of complaints made against the company CEO to better understand the issue. This is her duty towards her company and its employees to ensure any party is found guilty they are properly punished and anyone affected with any wrong doing in the company is compensated for actions of the guilty party. Finally, she needs to analyze the situation and make a decision which is right and good while confirming to her rational duty as the board member of the company. Veronica Singh has to choose an action which confirms to her recognized duty exemplified by the concept that "the means justify the end" (“Guthrie”).
According to the Right theory of Ethics, certain rights of human beings should be respected in matter all decisions these are privacy, freedom of conscience, free consent, due process and free speech (“Pasternak”). In this case, Veronica Singh needs to consider the right of free speech of employees which are complaining against the CEO Mr. Handsome. It is important for the company that case of these female employees is heard and justice is provided to these employees in case Mr Handsome is proven guilty of any act of sexual harassment. Also, in case Mr. Handsome if proven not guilty of any conduct of sexual harassment against the women employees it is important that the case is kept private to ensure the image of the company CEO is not tarnished. A CEO who is responsible for the uplifting the financial condition of the company in market and implementing anti-bribery norms which helped in improving company’s image market.
A right is a capacity, a possession, or condition of existence that entitles either an individual or a group to enjoy some object or state of being (“Duska, pp. 34-41”). To ensure the employees keep enjoying the state of security in the organization and condition where they feel protected by the rules which are same for everyone. Veronica Singh needs to ensure this for the sake of creating a climate where female employees feel they are protected by the company and they can work without any hindrance or harassment faced from any male employee which includes the CEO Mr. Mick Handsome.
Management Action
Few actions which are necessary to ensure any future acts of sexual harassments are not conducted in the company are:
Sexual Harassment Policy
According to Section 105 of Anti-Discrimination Commission Act; employers have explicit liability for sexual harassment and unlawful discrimination committed by the any employee. It means employers are equally responsible for commitment of any unlawful act, unless all reasonable steps are already taken for prevention of any misconduct (“adc.nt.gov.au”). Under this policy following steps should be mentioned:
- Developing a written sexual harassment policy, implementing it and monitoring its effectiveness.
- Ask for advice from staff about some necessary guidelines and encourage employees to follow them.
- Ensure the policy is on the Notice board or Intranet for everyone to read.
- Discuss at induction and every staff meet to ensure everyone is clear.
- Train staff on issues of harassment.
- Establish a complaint process
- Appointment of complain officer.
- Urgent response to all complaints and quick actions against anyone found guilty.
Management is responsible for monitoring the workplace on regular basis and any failure to act on finding any misdemeanor is act against the company policy. Sexual harassment cannot be accepted at workplace as it creates safety issues at work place and increases the costs of employer significantly. It is necessary for the organization that all staff members are clear about the company policy against act of sexual harassment.
Change the Environment
In every organization due to different reasons like attraction, workplace romance, flimsy nature of employees, the possibility of sexual harassment exists. In case you are a victim of such act from any other employee in the organization the only two actions you can take from then on are standing up for justice or avoiding the situation especially in case of superiority of the offender (“Hoffman, pp. 169-184”). This sort of ethical dilemma is not good either for the company or the productivity of the employee. In case an organization avoids cases of workplace harassment, employees will find it hard to work without distractions, avoid tussles, decrease their productivity and thus these issues should be handled as soon as they are presented n front of management. Any environment which encourages employees to come forward and discuss their issues with the Human Resources and management ensures the employees find working in that company as pleasurable experience.
Conclusion
Ethical theories help by providing sustainable framework to help in making ethically correct choices to dilemmas faced within an organization. Ethical theories follow the principles of ethics and lead in identification of best decisions in many cases. When the organization and employees understand the theories of ethics and their pros and cons, they get in situations where they become capable for making ethically correct decisions.
Works Cited
Marshall, A.M (2006). Confronting Sexual Harassment: The Law and Politics of Everyday Life. Burlington: Ashgate Pub Co. p 336-340
Vogl, F. (1998). The Supply Side of Global Bribery. Finance and Development - IMF/World Bank. 35 (2), p 31.
Duska, R. (2002). The Ethics of Reward Systems in the Financial Services Industry. Business and Society Review. 104 (1). p 34-41.
Beauchamp, T.L. Bowie, N.E. & Arnold D.G (2008). Ethical Theory and Business. London: Pearson/Prentice Hall Publication. p. 31.
Hoffman, W.M. (1991). Business and Environmental Ethics. Business Ethics Quarterly. 1 (2).
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