Ethics in business are the acceptable business rules and undertakings regarding controversial issues, such as bribery, organization governance, and discrimination. It is also the set code of conduct that guides the actions of the employees at their workplace. Organization comes up when people with different background and interests unite on a common goal and work together to achieve the set objectives (Grace & Cohen, 2013). If all employees are comfortable in their line of duty, the best will be achieved. Workers’ morale can be boosted by paying them good salaries, promoting the qualified staff and also rewarding the most active employee.
The Ethical Dilemma
William Potter’s decision to push the eldest son, Henry to the post of the Chief Executive Officer of the company was nepotism, the practice among those in the commanding position of favoring their family members. It is clearly shown from the extract when the son, who didn’t have the qualification, was set to occupy the top post of the family company. Jill Jones had done a lot for the company and with all the experience and academic qualifications was being denied the opportunity of leading the institution. At a given point, the son unsuccessfully tried to misplace Jill when she was in the middle management position.
Theories of Ethics
Stakeholder theory attempts to explain the moral and values in managing an organization. Traditionally, a company was viewed to belong only to the owners. Interests of others came last. Their decision was final, whether right or wrong. However, the theory tries to differ entirely with the traditional view in such that it outlines all the forces, internal and external, to be part of the business. It argues that there are other relevant parties involved. They include employees, Suppliers, customers, trade unions, the community and even political groups. All these interested parties must be treated well if the organization expects to thrive well. It is a theory that puts the competitors as one of the main parties in the success of a business. They have the capacity to affect the firm and its stakeholders.
William Potter, the head of Candy Corporation, wanted to promote his son at the expense of qualified staff, Jill Jones. Since one family owned the company, relatives are treated well than other workers. Henry did not have the required academics qualification to head the company. It was contrary to the theory of stakeholder. The company did not value and treated its staff uniformly. According to the teachings of stakeholder theory, the 45-year-old lady, who is an employee of the company deserved the promotion since she was highly qualified than the son.
Theory of self-interest argues that business decisions should be passed independently by self-interest to the extent allowed by the law. This behavior is unethical, but heroes of free market economics argue that self-interested behavior brings out wealth and creates new employment opportunities (Boylan, 2001). According to this theory, the interests of the business come first. Leaders will do all they can to pass laws that are within the company norms provided they are promoting the growth of the enterprise. A business manager cannot tell which action would benefit the society as whole. They contribute to the community by doing all that benefits his investment. This theory could be used to justify nearly any organization decision.
The decision by William Potter to put his eldest son to the highest post was for the interest of the company. He did not need to consult employees so as to appoint Henry. Having him as the company’s Chief Executive Officer apparently meant that he made all the decision and rulings in the interest of the institution. Having Jill Jones at the helm of the candy business would have been a risk because the decisions made were to be professional ones. Giving credit where it is due and criticizing when required.
Comparison and contrast
Both theories advocate for company’s interest. The group leaders are expected to make a ruling that will continue pushing the business towards its ultimate targets. Both acknowledge the importance of putting the company first. Henry was seen not ever to object directives from the Board Chairman, who was the father. As long as the company is making a profit, the leaders will be satisfied. The needs and demands of the enterprise come first. Workers do their job knowing very well in their minds that the company must be happy.
In the contrast, stakeholder theory advocates for the interest of the company but involving all the parties. It argues that both the internal and external factors determine the success of a firm. These forces work hand-in-hand for the betterment of the business. For example, poor relationship with the suppliers can result in delivery of low-quality goods. Again, if the enterprise does not comply with the set governmental requirements and rules, it risks being closed. However, the theory of self-interests puts the owners of the business at the helm. It’s the business owners who matter. For example, if the company is making profits when the workers are poorly paid, according to this theory, then the owners will not bother to increase their salaries. In summary, the two approaches are different in how the perceive the ownership of a business.
Best resolution and why
The best action for Jill Jones was to resign. It is because the company was determined to have a family member succeeding as the senior most staff. No matter how much she was offended, the company had all the rights to appoint a family member.
References
Boylan, M. (2001). Business ethics. Upper Saddle River, NJ: Prentice Hall.
Grace, D., & Cohen, S. (2013). Business ethics.
