Business Ethics: Making an Ethical Decision.
Introduction
Business ethics examines proper business practices and policies concerning potentially contentious issues including accepting bribes, any form of discrimination, corporate social responsibility and governance and fiduciary accountabilities. However, the interest in business ethics became more implemented in the 1980s and 1990s in business entities and learning institutions. These ethical issues give a reflection on the relations maximizing profit behavior with non-economic concerns. Therefore, most companies currently commit to these non-economic values lead by social interest appeals and ethical codes. According to Friedman managers in business, entities focus majorly on making as many profits as possible while abiding by the regular rules of the society, adding that individuals are the only entities who can have responsibility but not a business body.
Ethical dilemmas are common occurrences in most Businesses today; this refers to a situation when one has a choice to make among conflicting opinions and actions that should undergo evaluation ethical or unethical (Ferrell & Fraedrich, 1991). Moral dilemmas draw the assumption that the selector will abide by the code of laws in the process of making an ethical choice. Moral dilemma situations may be social, friendships, professional life versus family life dilemma and Kohlberg dilemma. Philosophers such as John Stuart Mill and Socrates in normative ethics say that the choosers are in a position to figure out the right moral action to be taken. Decisions made by employees in a company that abides by the set aside ethical rules enhance financial success of a corporation due to motivated and prospective employees. However, individuals who go ahead to make unethical decisions face repercussions such as being sacked since they may end up lowering employee morale and damaging the company’s reputation.
Decision Analysis
Decision 1
The theory of Egoism refers to the urge of an individual to satisfy self-desires and meet their needs “focusing on maximizing the good for the moral agent” (Reidenbach & Robin, 1990). Individuals always argue that business resolutions should always be made based on one’s self-interest, which may appear unethical in own various interactions. However, the concept of egotism has brought about benefits such as greater wealth production and job creations to particular businesses. According to the case scenario, I would recommend the Jill puts her ego aside and evaluates Henry reasonably based on his qualifications. If he surely qualifies, then she should support the position to be given to him. Her awareness about Henry’s good job at his previous enterprise in Miami Brach would give her the way out to making the best decision concerning this issue. By hiring him, the business will benefit from Henry’s knowledge and skills that he had acquired from his previous experiences hence boosting the businesses success.
Decision 2
Utilitarianism is whereby the best moral action to be undertaken is that that utility, the measures taken should result in positive outcomes for the majority and negative aftermaths to the minority or none. Its core principle is to provide the greatest happiness whereby an act is considered ethical when it results in significant benefits to the society. There are two major branches of Utilitarianism; rule utilitarianism whose role is to achieve net positive results by following rules and act utilitarianism which involve benefits maximization about the cost for a particular decision at hand. Based on the case scenario, the right opinion is that ill should consider the possible benefits that Henry would bring into the organization if awarded the chance as the CEO. This decision will reap benefits to the organizations considering that Henry’s performance in his previous place of work was the best and not putting him in place because he is the bosses’ son.
Decision 3
Virtue ethics is an ethical theory that recommends virtues such as honesty, justice, and audacity while discouraging the vices of dishonesty and timidity. It acknowledges that what can make something right or wrong focuses on the idea that it boosts traits culturally that are accredited as right or bad. A list of virtues and vices vary across different societies and cultures, which result in greater or lesser realization of individual potential. Jill, from the case study according to this theory should major on the virtues of honesty and justice while conducting the interview. By so doing, it enhances fairness, doing away with the vices that maybe another leader in the position like William from the scenario would have taken the advantage of supremacy and position in the organization to hire members of their families, relatives or friends.
Pros/Cons
In a business environment, employees are encouraged to practice egoism by showing respect to each other and assisting each other as a way of benefiting them in the end. Although it seems selfish showing their welfare to benefit from it later, egoism improves productivity by providing a conducive environment when everyone respects each other. Such kind of cooperation among employees increases productivity. An increase in productivity enhances the firm’s reputation because of high-quality services provided by the cooperative staff members. Also by being kind to every employee or employer, a person may benefit in the end because of the consideration of being promoted to higher ranks due to good conduct. However, when people all work for their selfish interests, it brings about conflict and exposes a society to threats of attack because egoism creates a society where nothing gets accomplished because everyone is working against each other.
Utilitarianism promotes a conducive and comfortable environment since it enables people to consider the outcome of their actions. This decision-making technique can benefit the society because a utilitarian’s primary aim is to maximize satisfaction among the people. It also helps with making tough decisions because it helps us think rationally without involving emotions. Although beneficial, sometimes utilitarianism can lead to missing lifetime opportunities because, as a utilitarian, one must consider how every decision they make will affect others. Such kinds of calculations can make one fail to make a correct decision. Also predicting the future is tough therefore, this can hinder an individual from making accurate judgments.
Virtue ethics encourages human beings to be habitually virtuous in the sense that people should not just follow rules or the system of values but also actually learn to achieve good results from their actions in their daily lives hence creating a moral society. Virtue ethics also provides moderation when an individual involves both reasoning and feelings in a decision-making situation. It allows an individual to decide the appropriate way that is most suitable for them. Virtues such as courage, however, can make a person make a decision with the intention of challenging himself or herself. The decision made a can make his or her life miserable in the end. In addition, proud and selfish individuals in a working environment can take distinct advantage of their patience and kindness.
Decision Choice
The best decision is Decision 2; Utilitarianism theory that encompasses all aspects that would bring about sufficient benefits to the business and positive results to a greater population other than the adverse effects. The principle of utility does not imply to the importance of actions but rather a magnitude to which such an actions promotes happiness. A Utilitarian has the capability of coming up with practical decisions without emotional involvement. In the case study, utilitarianism approach was the best way to solve this particular issue since it mainly focused on the possible advantages that the company would get from using the right criteria during the hiring process of Henry. In our decision, Jill put aside their differences with Henry and focused more on the possible outcomes that this company would reap from his experiences.
Conclusion
When to it comes to the real world decision-making, no particular ethical theory can be regarded indeed effective and efficient for all the circumstances and occurrences. However, the recommended approach is to study each case basing and referring to all the various theories of ethics. All decisions to be made regarding any business by managers should entail questions about the possible and planned course of actions relating to those decisions. Another factor to solve ethical issues is to consider the consequences of the potential cause of action undertaken by the individual. Therefore, one should be careful when dealing with dilemma business issues in their places of work mostly the human resource sectors that deal with hiring and promoting where such issues of integrity may be a primary con
References
Fraedrich, J, Ferrell, L. (1991). Business Ethics: Ethical Decision Making Cases. New York. Houghton Mifflin Company Publishers.
