1. INTRODUCTION
The changing nature of the workplace is making ethics a necessity for every institution. Today's work force is composed of people who are more heterogenous than ever in nationality, culture, religion, age, education, social belief and socioeconomic status. This diverse, multicultural population of workers has to work cohesively in a spirit of cooperation and mutual respect for the good of the organization and its stakeholders. However, on the job, workers face decisions that have significant implications on their job security, their salary, and the success of their employing organizations--decisions that pressurise them to protect their own interests, sometimes at the risk of losing their personal and corporate integrity.
Some burning issues facing society and business today include staff offtake, pollution control, disposal of toxic waste, depletion of scarce resources, cost curtailment, changes in law and technology, employee rights, discrimination against women and minorities, and product safety. These complex issues create ethical dilemmas that are difficult to resolve in real time.
There are many areas where ethical dilemmas arise. Here are five categories of common
ethical dilemmas that are often encountered in business scenarios:
1.Hiring and Termination Issues 2.Performance appraisal Issues 3.Disciplinary issues 4. Conflicts of interest 5. Use ofcorporate resources
a) Hiring and Termination IssuesRecruitment or hiring process is the first step in selecting human resource into an
organization, and will significantly influence the successful performance of the organization.
Ethics plays a very important role during the hiring of new employees. Law and regulations dictate the need to be ethical in hiring. The general ethics that need to be followed are as follows :
a) It is of imperative significance that candidates are to be selected on the basis of merit. Applicants are to be hired based purely on their knowledge, skills, and ability in accordance with the needs of the organization.
b) Consistency and objectivity during the recruitment process are very important.Criteria, including any changes therein, used for evaluating candidates should be stated and cogently explained to order to evade needless claim of biasness in the recruitment process.
c) When we recruit new employees, we should tell the applicants about the true state of the organization and not misinform the applicants.
d) We have to be extra careful when we are recruiting employees from organizations that have material dealing with us including our suppliers, customers and competitors.
e) When an employee is asked to leave, it is also of vital importance that the person is handled with
fairness and care.
My experience: Often being a member of the recruitment team of my former organisation sent to recruit fresh talent from local engineering colleges, I experienced suffering from numerous biases while selecting candidates. Often when I was in a good mood, I would tend to generously evaluate candidates while when I had a bad morning at office, I would underestimate candidates. When prospective candidates wanted to know about my experiences in the organisation, I tried to hide my negative ones and only tell them about my positive experiences. It was also often impossible to judge two candidates on a similar scale and purely on merit due to personal liking of the attitude or small idiosyncracies in a candidate.
b) Performance Appraisals are conducted to evaluate an employee’s performance over a set
period of time.When evaluating subordinates; one has to remain consistent and objective. Consistency is even more important when evaluating an existing employee than a prospective employee.In order to maintain objectivity; the company’s standardized evaluation forms should be used. In this way, uniform criteria can be used for the appraisal of all employees.
Also, all employees in the company are evaluated based on the same criteria.Constant feedback and communication between superiors and subordinates is necessary to facilitate a positive and productive working relationship.
My experience: We had a system of peer review in my former organisation. Often due to personal grievances or likings, employees used to enter biased rankings of their peers. There was a situation in which I deliberately inflated my rankings for a colleague as I knew his job performance was being hampered by family tantrums. I was in a true dilemma whether to judge his performance objectively or with consideration.
c) Disciplinary issuesDisciplining employees is one of the most difficult parts of a manager’s job. Nevertheless, it
is vital to the growth and overall success of the organization.Disciplining employees both ensures productivity and sets standards for the future.Discipline should occur immediately after a problem has occurred. It is imperative that the disciplinary actions remain consistent for all employees.
My experience: There was an incident in my college when I was part of the disciplinary committee of students there. A fellow-student, extremely diligent and known for his outstanding result and otherwise modest behavior was caught red-handed in eve-teasing. Although we knew his actions were a result of undue influence of a circle of his friends, we ratified the decision of the investigating body to suspend him for a semester. Although at that time the dilemma seemed difficult to solve, the decision turned out to be beneficial in the long run as the subject never repeated his action in future and the disciplinary action turned out to be successful in its motive.
d) Conflicts of interestConflicts of interest arise when an employee’s judgment is compromised due to external
influences. These situations present a particular ethical dilemma when the best interest of
the employee and the best interest of the company are at odds. A company may specify that an employee must not have any financial interests in a company that has dealings with or competing with it. However, most organizations, especially the smaller ones, do not have such clear statements on conflict of interest.
e) Use of corporate resourcesEthical use of corporate resources requires that employees be fair and honest to their
employers. Here are three considerations that I feel fall under this category:
• Using company letterhead: Employees should not use company letterhead or company stamps for personal reasons because such use can imply that the information contained in the personal
document is ratified by the organization.
• Using official supplies. Unauthorized use of supplies is unethical because it costs the
organization money, not considering the quantity of supplies used. Although taking a box of
pens home from the office might not appear to be a gross violation of ethical code, actually it is.
• Skewed data. Sometimes, an employee’s compensation is associated to the company’
s financial performance. One major problem with this approach is the temptation of such
employees to distort financial data. It is occasionally possible for an employee to achieve
this in a way that is unethical, although not illegitimate.
2) RESOLVING ETHICAL DILEMMAS AND VALUE CONFLICTS
a) A LITERATURE REVIEW OF ETHICAL DILEMMA CONFLICT RESOLUTION FRAMEWORKS
Several researchers have empirically tested frameworks for ethical decision-making using Kohlberg’s (Kohlberg, Levine & Hewer, 1983) theory of moral development and Rest’s (Rest et al., 1986) model for moral behavior as their foundation. Kohlberg theorized that human beings develop their sense of moral reasoning in six sequential stages, beginning with the first stage of obedience and punishment and moving through successive stages to the sixth and final stage of universal ethical principles. Kohlberg’s work has been criticized by Gilligan (1982), who found the final stages take on a different orientation according to gender. As a consequence, Gilligan has proposed a theory for moral development specific to females that is based on an ethic of caring, rather than Kohlberg’s ethic of justice. Rest (1986) has built upon Kohlberg’s and Gilligan’s theories by devising the Four Component Model, which explains ethical dilemmas as being resolved through a process having four distinct components: sensitivity, judgment, motivation, and courage. They concluded that a person’s moral failure, when contending with an ethical dilemma, occurs because of a deficiency in any one of these four components. Further, Rest and his colleagues claimed that these four components are sequential when they stated, “The four processes are present in a logical sequence, as an analytical framework for depicting what must go on for moral behavior to occur” . The Four Component Model has been supported by Hunter (1997), who found evidence that moral sensibility can be reliably assessed, and Bebeau (1994), who found moral motivation connected to professional identity.
Klinker and Hackman (2003) sought to apply Rest’s Four Component Model in their mixed method investigation into how secondary school principals made ethical decisions. While they confirmed that Rest’s four components are essential elements, their findings did not include a framework that describes the process for resolving ethical dilemmas. Moreover, their investigation asked for participants to retort to scenarios depicting diverse ethical dilemmas rather than exploring the ethical dilemmas that the participants had encountered in reality.
The process of making ethical decisions has been explored in business environments, and several models have resulted. Ferrell and Gresham (1985) developed a framework for decision-making based on contingencies that emerge from both individual and organizational contexts. In addition, Dubinsky and Loken (1989) have proposed a model for ethical decision-making that is based on a theory of reasoned action. These models, and others, have been synthesized by Jones (1991) into a single model that relies upon Rest’s four components as its foundation. Jones’ contribution is the addition of a component that acknowledges the characteristics of the ethical dilemma itself as a variable in determining the outcome. Specifically, he has proposed that the moral intensity of the issue is a contingency that influences the decision. However, Jones’ work is based upon a review of other theoretical models and studies, not empirical evidence. Further, we have yet to see a study that examines the ethical decision-making process of educators – teachers and administrators – based upon the real ethical dilemmas that they have encountered in their own professional practice.
b) GENERAL METHODS USED RESOLVING BUSINESS ETHICS ISSUES
Discussion, analysis, problem solving, and decision making are critical to the ethical resolution of conflicts. The resolution of conflict cannot rest in the hands of one or two individuals. All stakeholders in a situation must be involved--for legal as well as ethical reasons. Decisions should be based on the expressed viewpoints of all stakeholders in a given situation--even indirect stakeholders. Potential clients should also be recognized as stakeholders because their choice to do business with a firm may be based on the firm's reputation for ethical behavior.
Resolving ethical dilemmas, therefore, necessitates interpersonal and negotiation skills as well as the new application of employability skills--honesty, ability to work courteously, reverence for others, satisfaction in one's work, enthusiasm to learn, reliability, responsibility for one's deeds, integrity, and loyalty (Lankard 1987). For years, employers have sought workers with these skills and school curricula have stressed their importance for successful employment. Today, businesses are training their employees in critical thinking and conflict resolution skills required for ethical decision making. Schools are also focusing on developing students' critical thinking skills, but to date little has been published about the application of those skills in resolving potential ethical dilemmas specific to given occupations.
Discussions and analyses of case studies are predominantly effective in developing ethical decision-making skills. Participating in such learning activities requires active listening, inquiring techniques, verbal and nonverbal communication, and logical reasoning. Talking through a situation to achieve an ethical resolution gives students or trainees new insights into the incongruous issues within a situation, the variety of possible choices and the consequences of each, and the consciousness that they, as workers, will have a individual responsibility in conflict resolution. The selection of case studies should be directed to the commonplace dilemmas workers in a given occupation will face on the job. The problems and issues must be ones that are relevant to a given job/occupation and ones that are recognized as difficult to resolve.
Another strategy for ethics deliberation--one used regularly by business--is the initiation of organizational ethics committees. Such committees are formed to offer to management and staff objective recommendations on matters that are intricate to resolve. Some organizations have a hotline to which employees can direct their calls for assistance in resolving an ethical dilemma. As an educational stratagem, business leaders could be invited to the classroom to form an "ethics committee" to which students can pose questions they have about ethical dilemmas they expect to encounter.
Although using case studies and resource people to bring workplace situations and experiences into the classroom are good didactic strategies, students also need to receive training in critical thinking, conflict resolution, reasoning, communication (speaking and listening), and group process to prepare for the ethical negotiations they will encounter as they progress in their careers. Miller and Coady (1986) point out that today's ethical dilemmas require students to be equipped with higher order decision-making and problem-solving skills necessary to cope with increased individual responsibility for shaping their work environments and managing their career development. Mediation skills promoted by Miller and Coady (1986) include the following:
1. Assertiveness--the ability to stand up for one's liberties without infringing on the rights of others.
2. Empathetic listening--the skill to listen to the speaker's complete message and to respond suitably to the speaker's needs.
3. Principled negotiation--working together to create an agreement just for all parties
4. Evaluating risk--recognizing, assessing, and coping with risk.
Miller and Coady also recommend that in teaching mediation skills the instructor play dual roles of facilitator and participant. As facilitator, the instructor guides the students through the learning process. As a participant, the teacher models the behavior and qualities of an ethical worker (such as showing respect for the ideas of all, a willingness to listen), demonstrating how to learn rather than instructing students in what to learn.
Critical thinking skills required for decision making and arbitration skills required to execute those decisions are important to job progression and accomplishment. Most individuals will work for a number of businesses and in a number of jobs. They will be required to contribute to decisions affecting both the quality of the work environment and the production process. They will need to cooperate with a multicultural, diverse group of coworkers to resolve job-related problems that have ethical considerations. Courses that offer insight into the exclusive habits and practices of individuals from various cultures are crucial for the career development of all workers.
Training in resolving ethical dilemmas should therefore apply to all individuals throughout an organisation. It should also be done in a homogeneous, clear and pertinent way.
C) General Guidelines for Resolving Ethical Dilemma related to Business
a) Identifying a contentious ethical aspect
1. State the background of the case including context, its origin and any other important details. What is the history of the problem? Who is involved? Is there any missing information which you need to solve the problem? How does the problem affect you personally?
2. Could this decision or situation be damaging to someone or to some group? Does this decision involve a choice between a good and bad alternative, or perhaps between two "goods" or between two "bads"?
3. Is this issue about more than what is legal or what is most efficient? If so, how?
b) Gathering more information
3. What are the relevant facts of the case? What facts are not known? Can I learn more about the situation? Do I know enough to make a decision?
4. What individuals and groups have an important stake in the outcome? Are some concerns more important? Why?
5. What are the options for acting? Have all the relevant persons and groups been consulted? Have I identified creative options?
c) Propose and simulate Alternative Actions
6. Evaluate the options by asking the following questions:
· Which option will produce the most good and do the least harm? (The Utilitarian Approach)
· Which option best respects the rights of all who have a stake? (The Rights Approach)
· Which option treats people equally or proportionately? (The Justice Approach)
· Which option best serves the community as a whole, not just some members?
(The Common Good Approach)
· Which option leads me to act as the sort of person I want to be? (The Virtue Approach)
· Which option best satisfies my desired end results? (Teleological Approach)
· Which option best helps me carry out my assigned responsibilities (Deontological Approach)
· Which option suits myself best irrespective of its impact on others? (Egoist approach)
d) Select best and apply
7. Considering all these approaches, which option best addresses the situation?
8. If I told someone I respect-or told a television audience-which option I have chosen, what would they say?
e) Ponder and act on the Outcome
9. How can my decision be implemented with the greatest care and attention to the concerns of all stakeholders?
10. How did my decision turn out and what have I learned from this specific situation?
The general guidelines above need to be imbibed and applied consistently for successful resolution of ethical issues in business.
REFERENCES
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