Business Dilemmas in Relation to Ethics
Business organization are responsible for developing code of conduct and ethics so that each member of organization is abide to put same into action while accomplishing obligations regarding company (Sekaran and Bougie, 2016). Ethical issues in an organization comprise promoting conduct on the basis of integrity which engenders trust and more complex issues such as compliance and consistency with organization’s core value. Present report relates to discussion relating to ethical dilemma faced by online tutoring firm, Tutoring University. Further theories of Rand, Kant and Bentham have been applied in order to assess that which theory is able to resolve the existing issue in appropriate manner.
Business dilemmas in relation to ethics can be referred as a moral situation in which organization or management has to make a choice between two equally undesirable alternatives. It is common for every organization. The business dilemmas faced in present scenario of Tutoring University are as follows:
Initially Ang Lee initiated the tutoring service with aim of helping students who attempt to defraying school cost through earning additional money by providing tuitions. The main focus was to make student learn and to develop their skill relating to solving problem on their own. However, with change in time this core concept is moving somewhere to expansion of services and exploring to new areas in order to attain more profit. Thus, the company requires choosing whether to focus on enhancing the skills of students or to maximize the profit of organization.
As per the provided facts of case study of Tutoring University it can be assessed that Lee and Jenkins have attained enhanced growth till present. The same have been attained only on the basis of core values of business which they have followed yet. However, as now competition has increased and new entrants have entered into market which could be proven threat for their organization. As the new organizations are providing services which are not provided by Tutoring University, which comprises such as exchange quizzes or papers from repository for a fee etc. But in order to stay in race same have been initiated by university along with new service called “Let Us Do Your Homework for U”. The service will compromise the initial core value of business which was to educate. Thus, the organization is facing business dilemma.
Codes of Conduct are developed to predict and avoid specific kind of behavior which comprises self-dealing, conflict of interest, unethical actions, issues relating to bribe. They can be lengthy and detail. The reason behind same is that an employee can understand the same completely and deal with no complexity in understanding the core value behind it (Neher and Sandin, 2017). Code of conduct play significant role in selecting dilemma. As they are the base of which decision will be made rather it can be said that option will be chosen. Generally, codes of conduct emphasize on the “do not’s” rather than on affirmative obligations. Due to same reason, they detail specific actions in which employees are not to engage.
Codes of Conduct and Ethical Dilemmas
Moula and Sandin, (2017) asserted that the presence of code of conduct creates dilemmas as they are the base of which decision of management will be dependent. It decides the priorities which an organization is requiring considering in appropriate manner before taking any decision. In present case of TU, the code of conduct is moving from education enhancement to attaining the highest position in the market. Thus, due to same some decision has to be taken which lead to ethical dilemma. One of such situation is providing service of doing homework of student which is not ethical. Standards of Conduct do change over time and same can be accessed in case of Tutoring University too.
Fundamental Issues
These are also known as essential ethical issues as each organization has to face the same. It comprises assessment of two components i.e. integrity and trust. Operating business with honesty and dealing with each customer on fair basis is the main fundamental issue with which each organization has to deal (Hartman, DesJardins and MacDonald, 2014). Even in present case of Tutorial University, organization is dealing with fundamental issues. Due to increase in competition, it is not possible to treat each client with same manner.
Compliance and Governance Issues
An organization requires following environmental laws, federal and fiscal and monetary reporting statutes and all other specified civil rights laws (Goetsch and Davis, 2014). For instance , the Aluminum Company of America’s move towards to compliance ensuring that no executive or any other employee at the company may ask any employee to break the law or to un follow the core values of company. Further, the same is assured by its approach to corporate governance: the company anticipates all ALCOA directors, executives and other employees to operate business in accordance with its business conduct policies.
Whether to continue to emphasize on providing education or to switch to new motive maximizing profit?
The capitalism base approach followed by Bentham is dependent on the “greatest happiness” principle. On the other hand, Kant gives us the foundation of a secularized religious ethics which is referred as basis for much criticism of business operations. Further, Rand provides a radical defense of capitalism and of capitalistic activity dependent on morality of rational self-interest. All these theories will be applied in order to make appropriate decision. As per the core values of Rand, which believes that which sustains is good and which destroys is evil (Everett, Pizarro and Crockett, 2016). Thus, this principle states that each individual should pursue his or her own interests and same can be applied in order to take appropriate decision for Tutorial University
Essential Ethical Issues Faced by Organizations
Whether to retain core values or to make attempt for winning the competition?
As per the theory of Bentham, which is based on concepts of utilitarianism does not specify a clear-cut opposition to personal profit. Rather, than it can be said that it believes that it is good to seek one’s own pleasure. In words of Dierksmeier and et.al. (2016), the concepts of Kant are based on theory of morality which specifies that duty means strict adherence to moral law without regard to its consequences in action. Thus, in order to deal up with present issue Bentham theory can be applied as core values cannot be continued in same way in order to win the existing competition with rivals.
Theory of Kant cannot be followed as the same believes that morality should be strictly followed without assessing the actions to which it leads. It is not possible for an organization to take decision with this approach as many variants are affected with every decision (Crane and Matten, 2016). On the other hand the concepts of Rand and Bentham are much different for this prospective. As they do not clearly opposite actions leading to personal interest. Thus, it could be assessed as best approaches which can be followed by Tutorial University in order to resolve the existing issues relating to business dilemmas.
It can be concluded from above discussion that it is not possible for any organization to take decision only after assessing one phase i.e. morality and ethics. It is necessary to assess each relating phase of decision or the actions which will be taken relating decision. Lastly, theories of Bentam and Rand will assist Tutorial University to take appropriate future decision as well as in resolving ethical issues.
References
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Dierksmeier, C., Amann, W., Von Kimakowitz, E., Spitzeck, H., Pirson, M., & Von Kimakowitz, E. (Eds.). (2016). Humanistic ethics in the age of globality. Springer.
Everett, J. A., Pizarro, D. A., & Crockett, M. J. (2016). Inference of trustworthiness from intuitive moral judgments. Journal of Experimental Psychology: General, 145(6), 772.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River, NJ: pearson.
Hartman, L. P., DesJardins, J. R., & MacDonald, C. (2014). Business ethics: Decision making for personal integrity and social responsibility. New York: McGraw-Hill.
Moula, P., & Sandin, P. (2017). Ethical Tools. The Ethics of Technology: Methods and Approaches, 115.
Neher, W., & Sandin, P. (2017). Communicating ethically: Character, duties, consequences, and relationships. Routledge.
Prinz, J. (2016). Emotions, morality, and identity. Morality and emotion, Pp 13-34.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach. John Wiley & Sons.
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