Monday, December 21, 2015

The code of ethics


Abstract


“Ethics is the code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong” (Daft, 2005, P. 140). To establish ethical values in the workplace, organization can fortify the organization’s culture, improves trust in relationships between associates, support greater consistency in standards and qualities of service, and cultivate greater sensitivity to the impact of the enterprise’s values. However, it is destructive if the leadership of a company does not behave ethically. WorldCom and Enron are examples of companies that ignored the ethical practice of their business. The Enron’s former CEO Jeff Skilling was sentenced 24 years in prison after being convicted of 19 criminal counts.  Ex-WorldCom chief executive Bernard Ebbers was sentenced to 25 years in prison for his role in the biggest corporate fraud in the nation's history. Though these are two extreme examples, fraud on insurance is illegal and Empress Luxury Lines had involved in such activities. Working under this kind of environment, employees would have many difficulties. To have sustainable business, Empress Luxury Lines needs to establish ethical culture.



                       
                        Manager's obligations
        “Most ethical dilemmas involve a conflict between the needs of the part and the whole-the individual versus the organization or the organization versus society as a whole” (Daft, 2005, P. 142). Utilitarian and individualism are two approaches to describe values for guiding ethical decision making. Under utilitarian approach, a decision maker accepts the principle of utility and is therefore concerned with maximizing the value for greatest number of people. In general usage, the term utilitarian may mean narrow economic or pragmatic viewpoint. The individualism approach contends that acts are moral when they promote the individual’s best long term interests. Individuals calculate the best long-term advantage to themselves as a measure of a decision’s goodness (Daft, 2005, P. 143).
        In the Empress Luxury Lines case, with the utilitarian approaching, the decision that Antonio Melendez most likely to reach is to report the fraud.  Because the top managers in the Empress Luxury Lines were doing something illegal, to report those activities is good for the public. If Antonio Melendez employed the individualism approach, he may tell Kevin Pfeiffer to do whatever the top managers told him to do or keep silence. That way both Anotonio Melendez and Kevin Pfeiffer could avoid running into trouble with their employment. 
        In an ethical organization, managers should not only delegate authority but also take responsibilities and make ethical decisions. “Managers have to think about culture because it typically plays a significant role in organization success” (Daft, 2005, P. 85). In general, as a supervisor, Antonio Melendez should provide Kevin Pfeiffer with a place of employment that is free from hazards with instruction of rules, regulations, orders, motivation, training, and control. Antonio should also process Kevin Pfeiffer's report of work related issues as well as protect Kevin Pfeiffer from reprisal.




                                                        


Personal reaction
        Individuals bring specific personality and behavioral trait to the job. On
important trait is the stage of moral development (Daft, 2005). The level of morality
        de    development could determine an individual’s decision making, which had been grouped into  three major levels including pre-conventional, conventional and post-conventional .The pre-conventional level of moral reasoning is especially common in children, although adults can also exhibit this level of reasoning. People at this level judge the morality of an action by the direct consequences. A person with pre-conventional morality has not yet adopted or internalized society's conventions regarding what is right or wrong but instead focus largely on external consequences that certain actions may bring. Individuals at the conventional level of reasoning have a basic understanding of conventional morality and understanding that conventions are necessary to uphold society. At this level, individual obeys rules and follows society's norms even when there are no consequences for obedience or disobedience. At the post-conventional level, individuals’ view may take control over society’s view; they may disobey rules inconsistent with their own principles. These people live by their own abstract principles.
        “Although whistle-blowing has become widespread in recent years, it is still risky for employees, who can lose their jobs” (Daft, 2005, 161). Though it is not an easy decision to make, if I were at Antonio’s position, I would have started to find another job, and then email Phil to tell him that I had received report that the cost of the damage was around $20,000 and suggest to him that the company should report to insurance company accurately to avoid consequences. But I would not feel good about that situation that I have to find another job because of someone else's wrong doing. Nevertheless, I think this is the right thing for me to do. I will be glad to tell Empress Luxury Lines to take social responsibility, develop ethic code, and behave ethically. Otherwise, the company may face serious consequences. Hopefully, I could have found another job before they can take action to fire me. This response should be considered as post-conventional level.

Issues about resume

      “Fibbing on your resume is a really bad idea” (Selvin, 2008). A resume should be the personal professional experience, education, and qualification. The resume should not have errors or gaps that may raise question. On the other hand, the resume and cover letter can be used to show personal ethics and sincerity though it is not easy to deliver the message of honesty and good intentions in a letter and a resume. Nevertheless, many employers hold strict no tolerance policy against dishonesty. In addition, dishonesty could cause further problems, “dishonesty in a resume is grounds for termination” (Cooper, 2009)
           Therefore, if Antonio or Kevin were looking for job after being fired, they should make sure that all of the information on their resume is authentic and truthful. To hide information on a resume is not acceptable. Instead, Antonio or Kevin should talk about what had happened and why they were fired in the cover letter so employers would not have doubt about that experience.

Discussion


           Ethical organizations are supported by three pillars: ethical individual,  ethical leadership, and organizational structures and systems (Daft, 2005). Theleadership, value, culture, and ethical code have tremendous influence on employees’ behavior, which are very important to an organization. Ethics is the keystone for smooth, effective, and efficient operation of business organizations. If we cannot trust another person's word or feel confident that a person will keep contractual agreements, business as we now understand would stop (Solomon and Hanson, 2006). More and more firms realized that behaving ethically is important for business to success. “Ethical culture yields long term organizational success” (Robin, 2006). Ninety percent of the Fortune 500 firms, and almost 50 percent of all other firms, have ethical codes. Increasingly, customers, clients and employees are deliberately seeking out those who define the basic ground, rules of their operations (Jain, 2010). Fraud is a serious crime, which could cause public relation disaster for the company and results in being imprisoned for those involved. The ethical business conduct is critical to every business’ well-being.  “The norms and values of the team, department, or organization as a whole have a profound influence on ethical behavior” (Daft, 2005, P. 149). Therefore, Empress Luxury Lines must develop ethical leadership character and ethic code to avoid potential public relation disaster and other consequences. “The best ethics policies address general employee conduct and promote an ethical corporate culture” (Coenen, 2007).


Conclusion
Fraud on insurance is a serious crime, which could cause public relation disaster for the company and results in being imprisoned for those involved. “Most ethical dilemmas involve a conflict between the needs of the part and the whole-the individual versus the organization or the organization versus society a whole” (Daft, 2005, P.142). Utilitarian and individualism are two approaches to describe values for guiding ethical decision making. In an ethical organization, managers should not only delegate authority and but also take responsibilities.

Individuals bring specific personality and behavioral trait to the job. One important trait is the stage of moral development (Daft, 2005). The moral reasoning had been grouped into three major levels including pre-conventional, conventional and post-conventional. The level of morality development could determine an individual’s decision making.
        “Although whistle-blowing has become widespread in recent years, it is still risky for employees, who can lose their jobs” (Daft, 2005, 161). Though it is not an easy decision to make, if I were at Antonio’s position, I would have started to find another job, and then email Phil to tell him that I had received report that the cost of the damage was around $20,000 and let him know that the company should report to insurance company accordantly. This personal response should be considered as post-conventional level. A resume is the personal professional experience, education, and qualification. The resume should not have errors or gaps that may raise question. To hide information on a resume is not acceptable.  Instead, individuals should talk about what had happened in the cover letter so employers would not have doubt about some sensitive experience.
           Fraud on insurance could have serious consequence and this practice needs to be stopped. “The norms and values of the team, department, or organization as a whole have a profound influence on ethical behavior” (Daft, 2005, P. 149). Empress Luxury Lines must develop ethical leadership character and ethic code to avoid potential social relation disaster and other consequences. Good conclusion and presentation of your position.




 


 




 

 

 

 

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