Business Ethics: Ethical Decision Making And Cases

An Ethical Dilemma

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An Ethical dilemma

Introduction

The capability to recognize and tackle business ethics matters is significant for the decision-making process and the success of a company. According to Ferrell and Fraedrich (2016), business ethics encompasses organizational values and culture that guide individual and group behavior in a business. With proper business ethics, sound decisions and judgements are made concerning the welfare of workers and the overall growth of the company.

Case study.

From the book business Ethics: Ethical Decision Making and Cases by Ferrell and Fraedrich 2016), the author presents a case of two sales representatives, Sophie and Emma after who engage in a conversation after

if the situational factors within the company in the case study had been changed, there would have been a situation whereby the organisational structure would not hinder decision-making process. Furthermore, suggestions from the subordinate staff would be encouraged and considered by the management. From the case study, Emma notes that she had shared the issue of the forms having fewer categories with the accountant. Her intention was that the forms be changed to accommodate all the tips they give while on duty. However, her opinion is met with a threat of her losing the job. This is a result of the situational factors, which if done away with, it would have enabled the changing of the forms as suggested by Emma. Moreover, the sales vice president would allow her team to engage in a behaviour considered unethical by the company. Consequently, the company would nurture and develop workers who are honest and confident in reporting issues that matter to the

Emma a sales representative in her company shares with Sophie about the situation that found herself in after suggesting that forms be changed to allow more categories of tips. Since the situational factors of the work environment limits changes on the sales forms and the expenses they incur while in the field, the vice president makes a decision that Sophie considers unethical and against the policy of the company. This is because the sales representatives make additional tips on blank cab fare receipts of which are acceptable to the vice president.

The ethical decision-making process involves stages in the order of problem recognition, moral judgement, establishing moral intent and then engaging in a moral behaviour. In the analysis of the case study, individual factors of cognitive development were responsible for the decisions made by Emma and her vice president regarding the sales forms. On the other hand, the situational factors like bureaucracy, authority and the organisational structure also contributed to the decisions by the sales team to engage in unethical