Profits vs. Morals: The Business Decision
“Being good is good business… If you do things well, do them better. Be daring, be first,
be different, be just.”
– Anita Roddick, founder of The Body Shop
Today’s companies, both big and small have to do whatever they can to accommodate the best interest of the consumer. This is not only to insure profits, but also to insure a good reputation. When occasions occur where corporations have to choose between their revenue and their inner moral perspective, an ethical dilemma arises. As a freshman business student, I chose this topic because I know that dilemmas are susceptible to any company, and any occupation. I want to learn more about what is considered an ethical dilemma, and how to prevent such events to occur with that knowledge in mind. Through this paper readers will understand, “What is an ethical dilemma?”, “What are some examples of real world ethical dilemmas?”, and “How do organizations deal with the issue of ethics or morality?”
What Is An Ethical Dilemma?
According to Richard Jacobs of Villanova University (n.d.), an ethical dilemma is defined as “a fundamental conflict of values embedded in and motivating recurring organizational problems. Both alternatives present a positive option―two "goods"― or a negative option―two “bads” ― that, unfortunately, the selection of one forecloses the possibility of the other.” In order to solve ethical dilemmas, decisions need to be considered of all the options available to bring compromise or resolution. To completely come to a consensus on what to do about the dilemma, a person in the situation would need to focus his or her perspective on what principles are the most important and which can be put on hold (Mann, n....
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...ding services and products that will last a long time without breaking any lawful or moral codes in the process. If under fire due to ethical controversy, the organization’s well-being will be scarred unless they find a way to be both profitable and considerate. The most successful companies will look beyond their own profit and take into account the importance of being a “role model” organization that consumers admire. Being more knowledgeable about the topic of ethical dilemmas helped me understand the meaning behind the term, recognize examples from well-known corporations in the past, and identify methods companies are utilizing to help employees think morally. From this paper, readers comprehend more of “What is an ethical dilemma?”, “What are some examples of real world ethical dilemmas?”, and “How do organizations deal with the issue of ethics or morality?”
At times in a person’s life, they might come across a few situations that leave them with a major decision between two or more options that challenge what they believe or what they might think is wrong or right. These are known as ethical dilemmas. Be it seeing a friend steal something and choosing between being honest and speaking up or letting it go. It can also be getting paid more than you earned and deciding if you’re going to be greedy and keep the money or return it. We run into these situations in our lives, some bigger and more influential on our destiny’s while others are small with no real consequences.
An ethical dilemma is defined as a moral issue, where a situation has two equivalent undesirable alternatives and neither choice will resolve the ethical predicament.
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the only important value is the bottom line, most executives merely give lip service to living and operating their corporations ethically.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: Ethical decision making and cases: 2011 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning.
Ethical issues in business arise because of conflicts between an individuals personal moral philosophies and values and values or attitudes of organization in which a person works and a society in which one lives. Ethical issues can be identified in terms of the major participants and functions of business. Ethical issues related to ownership include conflicts between manager’s duties to the owners and their own interests, also separation of ownership and control of business. Financial issue includes, for example, the accuracy of reported financial documents. Ethical issues can acquire between manages and employees, then employees are asked to carry out assignments they consider unethical. Consumers and marketing issues are related to providing safe desired products for a fear price and not harming people and an environment. Accountants also face ethical dilemma, they have to deal with competition advertising commission. All of this places the accounting profession in situation of ethical risk.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases: 2011 custom edition (9th ed.). Mason, OH: South-Western Cengage Learning.
Garsten, C., & Hernes, T. (2009). Ethical Dilemmas in Management. New York: Taylor & Francis Group.
Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.
[2] An Ethical dilemma is defined as “a situation that arises when all alternative choices or behaviours have been deemed undesirable because of potentially negative ethical consequences, making it difficult to distinguish right from wrong” (Samson and Daft, 2005, p.158)
An ethical dilemma is a form of problem facing an individual, which includes complex and often conflicting principles of ethical behaviour. A typical example of an ethical dilemma is a salesman; when selling a certain type of product he may face the dilemma of telling the truth about a product and end up losing a sale and his commission. However, he may feel that being truthful reveals he wants the best for the customers and is being more considerate about them. It all depends on how you deal and understand a situation.
Shaw, W. & Barry, V. (2010). Moral issues in business (11th ed.). Belmont, CA: Wadsworth, Cengage
Corporate governances actually illustrate that no entity or agent is immune from fraudulent practices (Arjoon, 2005 p 342-344). Therefore, it is crucial for an organization to have a stable ethically healthy corporate culture, Patagonia is "doing things right" by influencing the actions of the workforce. Through the integration of ethical conduct in an organization, employees see the complexity of making ethical choices; also, it helps the staff understand what an ethical decision entails and how to talk about hard ethical choices and taking responsibility for making moral choices carefully and
Shaw, W. H., & Barry, V. (2011). Moral Issues in Business (Eleventh ed., pp. 230-244).
Everyone in this world has experienced an ethical dilemma in different situations and this may arise between one or more individuals. Ethical dilemma is a situation where people have to make complex decisions and are influenced based on personal interests, social environment or norms, and religious beliefs (“Strategic Leadership”, n.d.). Leaders and managers in the company should set guidelines to ensure employees are aware and have a better chance to solve and make ethical decisions. Employees are also responsible for understanding their ethical obligations in order to maintain a positive work environment. The purpose of this case study is to identify the dilemma and analyze different decisions to find ways on how a person should act ethically when left with an ethical dilemma.
Morality is defined as the values that distinguishes between good and bad or right and wrong actions (Morality). It is an essential value to have since it plays an important role in shaping a person’s behaviour as well as actions that causes further external consequences uncontrollable by individuals’ ability (BLOCK, Greg). Especially in business decisions where one small judgement may create a chain effect, inducing a series of events one after another. This will affect countless stakeholder groups, causing consequences on an unimaginable scale at times. Be it for legal reasons, ethical considerations or personal reputation, business decisions should not completely disregard morality.