Summary of Article
The article revolves around rumors of unethical conduct that have occurred at a health care organization. The structure of this organization is organized such that there is a head CEO chairing a board comprising of CEOs who are heading smaller branches of the health care organization in the localities. The head CEO who chairs the board comprising of junior CEOs has heard rumors that one of the valued member of his board has been involved in unethical conduct against the stipulated health care organization laid rules and regulations of running of day-to-day operations. During such instance, the following are the recommendations of dealing with such a scenario:
- The CEO should acquire legal advice before taking any initiative to respond to such rumored misconduct
- Find appropriate means of limiting the spread of such rumors by not duplicating them
- Put in place an appropriate action plan to safeguard the interest of the organization, the public, and lastly that of the board members’ reputation
Unethical Behavior Involved
The article does not mention exclusively what the unethical conduct is because the allegations are mere rumors that one of the board members junior CEO has taken part in business malpractices. However, we can speculate the possible unethical behaviour or misconduct that the CEO is alleged to have taken part in. The possible misconduct includes improper disclosure of confidential information about one supplier to a rival who competes with the supplier. The other possible misconducts the CEO might have possibly taken part in are insider trading and the improper gathering and use of information that gives the CEO competitive intelligence.
The Injured Parties
The injured parties are the health care organization, the board members whose reputation is at stake, and other stakeholders such as suppliers and the subordinate employees. For example, if it turns out the rumors are true, the health care organization image and reputation might be at stake. This is because such rumors will paint a bad picture in the minds of the public. The organization may suffer setbacks such as competitive disadvantage and lag behind its rival competitors. Individuals who believe the rumors are true may shun away and cost the health care organization the business they used to bring. Parties who feel they were affected by the alleged misconduct and therefore lead to financial losses when making settlements may fine legal suits. In addition, all the board members reputation will also be at stake, as one of their very own would turn out to be the one to have spearheaded the unethical behaviour. Their reputation and chances of landing higher positions in prestigious organizations in the future may be limited.
Impact of the Unethical Behaviour on the organization, Individual, and Society
Precisely, the reputation of the health care organization has been tarnished by the rumors and this is likely to cause the loss of clients and suppliers in the end. The health care organization is likely to undergo financial losses due to increased legal suits filed by the aggrieved parties who may want to seek financial compensation if the rumors turn out to be true. The participants such as suppliers may acquire unnecessary publicity since their private contacts and documents may land in the hands of their competitors who used the CEO to gain such remote information about their rival. The community may lose faith in the services of the health care organization and this will cause them psychological suffering of they are admitted in the same health care organization during times of medical emergencies.
How to resolve the unethical behavior
First, the health care organization should train all its workers from the top management to the lowest subordinate about the importance of ethical business practices and proper conduct. The board CEOs should seek legal advice on ways of resolving such unethical practices in the most prudent way when they arise. Secondly, services of a public relations firm should be hired to counter the negative image created in the minds of the public because of the allegations. Thirdly, workers should be trained to be transparent, and accountable to avoid skewing of results. The concerned department in the organization should also address the issue of immorality.
