Ethics Of Interest And Outside Compensation Essay

Ethics Of Interest And Outside Compensation Essay

Length: 762 words (2.2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

2. Ethical dilemma is when an individual had to decide between two options, both are morally correct but it is in conflict. Ethics is important because an individual needs to have an idea that something is morally good or bad. Not to mention, there are people who are untrustworthy; therefore, we need to able to make a judgment on who will affect us in an organization. For example, one bad practice that occurs in the real world is money laundering which is a bad practice that will affect the organizations and the public trusts.
The nonprofit ethical considerations associated with these two dilemmas are conflict of interest and outside compensation. Conflict of interest is when the organization tries to avoid a decision that would give private benefit to board members or their relatives. In option A, the donor will make a 250K gift to the organization; however, the organization needs to benefit the donor by hiring his sister for a specific job. In this case, it is conflict of interest because the donor is trying to get the private benefit. As for outside compensation, it is when there are policies addressing what to do with external payments. In option B, the donor promises to make a transformational gift; however, the donor wants to fund something that does not relate to the organization’s mission. Obviously, the donor wants to make the organization’s decision on where to fund the external payment to, which is outside compensation.
There are three ethical approaches, which are principle-based, utilitarian, and virtue and intuition. Principle-based focus on the idea of obligation or duty; therefore, it makes judgments based on the morality of an action. For utilitarian, it believes that the actions are right if they are benefi...


... middle of paper ...


...own interest and not the organization’s interest. In this case, I should not let my cultural values affect my decision; therefore, I need to look at the big picture and base my opinion on everyone’s culture in the organization. In addition, this decision will impact my organization’s revenue and it can harm the organization I make one wrong decision. I want to make sure that the donation will benefit the organization and also follow the guidance. Everyone decides to join the organization because they have the same beliefs and they believe that their time and effort is to donate to that specific mission in the organization. Furthermore, we should not let anything affect the organization and know the importance when it comes to decision-making. The decision-making will only focus on the organization’s mission and nothing else that is towards our individual’s interest.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Code of Ethics in Trans World Entertainment Corporation Essay

- ... Trans World Entertainment expects their employee’s to act honestly and fairly with the high ethical standards provided in the code of ethics. Employees are encouraged to report their concerns if a violation has occurred or face retribution for failure to notify the proper chain of command. They clarify this statement with information the employee can use to anonymously notify management of their concerns Trans World Entertainment acts in accordance to the letter of the law and guidelines as stated in the code of ethics and expects the same from their employees....   [tags: principles, procedures, honor, law, interest]

Free Essays
534 words (1.5 pages)

Essay Employee Code Of Ethics

- 1.0 Introduction Nowadays, society is governed by the implications of rules and legal restrictions. All of these rules were created to uphold and maintain the idea of ethical and moral values. Even children growing up were taught by some very important codes of ethics at school. These lessons learned as a youth growing up carry over into adulthood, as an employee or manager. Managers and workers both follow a similar code of ethics within the work place. Today, as a management consultant, I am going to prepare a code of ethics for my clients as they have recently started a restaurant called Knox, it is important to have a code of ethics in every company for their employees and also a circul...   [tags: Business Organization Ethics Morals Behavior]

Free Essays
1936 words (5.5 pages)

Essay on Option 1 : Ethics Money And Happiness

- OPTION 1-ETHICS-MONEY AND HAPPINESS 2 Option 1-Money and Happiness What is happiness and how is it achieved. This question has been debated in the past and without question will continue to be the focus of discussions far into the future. In particular, the significance of money in achieving happiness has been of particular interest. One foundation of our wealth may be our employment earnings. A 2011 study by a collaboration of five major universities revealed that their exists a complex relationship between our level of happiness and our pay (Wyld, 2011)....   [tags: Happiness, Happiness economics, Hedonic treadmill]

Better Essays
998 words (2.9 pages)

Essay on Employee Compensation and Islamic Ethics

- From the Islamic perspective, one major drawback in this organization compensation policy is organizational injustice towards employee. According to Abulhassan (2006), Islamic principles are concerned with justice and fairness. Organizational justice is essential as it represent employee’s perception about fair treatment in organization (Murtaza et al, 2011; Prof. Dr. Muhammad Ehsan Malik et al, 2011). Greenberg and Baron (2003) found that organizational justice comprised of employee’s perception toward distribution of outcome and perceived fairness....   [tags: Islamic ethics case study]

Better Essays
874 words (2.5 pages)

Compensation Philosophy : Employee Compensation Essay

- Compensation philosophy is basically official statement recording the organization position about employee compensation. This explains the “why” of employee pay and produces a framework for stability. Employers can benefit from this if open about their compensation philosophy and having a proper pay strategy (SHRM, 2015). The executive team and the human resources department are the ones that usually develop the compensation philosophy’s. The compensation plan is based on different factors, for example, the organizations financial position, the salary information, the size of the company, and the level complexity in discovering qualified people based on the economy....   [tags: Employment, Employment compensation, Insurance]

Better Essays
782 words (2.2 pages)

Essay about A Brief Note On Fair And Equitable Compensation

- Fair and equitable compensation is an important concern for all employers. To attract and retain employees, organizations must have an adequate compensation and benefits program in place. Employers go to great lengths in developing a compensation program so employees feel appreciated in the work they are performing. Job analysis and market studies are conducted regularly to compare competitor’s compensation and benefits programs. These studies ensure equivalency in pay by the job being performed, as well as paying skilled employees adequately....   [tags: Employment, Employment compensation, Wage]

Better Essays
1156 words (3.3 pages)

Trust In Business Is A Means For Greater Business Efficiency Essay

- All businesses strive to be effective and efficient. Whilst the hallmark of a capitalist economy is self-interest and competition, cooperation is also necessary in order to further efficiency and productivity. For a business to be successful, the people within need to develop relationships amongst each other as well as outside the organization in order to be able to work with one another. These relationships are a function of trust. Trust is the reliance on the integrity, ability, or character of a person or thing....   [tags: Business Ethics]

Better Essays
1850 words (5.3 pages)

Managing Compensation Systems Essay examples

- Managing Compensation Systems In our current business environment, there are several types of compensation programs for employers to choose from, and numerous combinations of these programs. Each plan is valid and valuable, but different companies, departments, and positions require different compensation plans. No matter what compensation program a company chooses, the program should balance internal equity and marketplace competitiveness. Before choosing a compensation program, a company should evaluate its culture and needs and perform a SWOT analysis before designing a roll out program....   [tags: Business Environment, Compensation Programs]

Better Essays
1006 words (2.9 pages)

Executive Compensation Essay

- For Sunan Pty Ltd to have a successful float, a detailed and well thought out compensation governance needs to be developed. The following recommendations have been built create a compensation package to help maximise shareholder interest for Sunan Pty Ltd. PRINCIPLES OF REMUNERATION Remuneration packages should be created to attract executives capable of motivating people, communicating a vision, and leading a company to success to achieving long-term shareholder value ***** Remuneration packages should reward success over short and long term periods with an emphasis on the long term ***** Remuneration packages should be fair to all stakeholders of the business REMUNERATION COMMITTEE T...   [tags: Business Compensation Payroll]

Free Essays
1211 words (3.5 pages)

Essay on Money And Interest

- Interest was generated as the outcome of transactions between borrowers and lenders, one of the earliest financial activities that have ever appeared in human history. However, the functionality of interest is developed by the evolution of money, an idea that in fact appeared later than interest. The modernization of money and interest never takes a monotonous path: sometimes it breeds financial prosperity, but the next time it may bring catastrophe. As with fire, economists and policymakers throughout the history keep monitoring and intervening in money and interest, trying to grasp these tools but not get hurt....   [tags: Money, Economics, Debt, Interest rate]

Better Essays
2363 words (6.8 pages)