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UWEAR is undergoing a difficult period that has been characterized by declining sales and relatively low profit margins. This situation has generated considerable concerns and pressure of the firm's employees include Joe who is fearing cutbacks and layoffs because of the company's merger with PALEDENIM. However, Joe has established good relations with the CEO of Peninsula Hotels and signed a contract with them in the past financial year. Given the good relations that already exist between Joe and the CEO of this hotel chains, Peninsula is seeking to renew the contract for the upcoming financial year. However, the contract renewal has generated several concerns given that the initial price was so low while Threads4U has offered to beat that offer by 10%. As a result, Joe is facing a leadership and ethical decision-making dilemma that is exacerbated by the pressure to perform.
Based on this theory, an act is not inherently right or wrong, but its rightness or wrongness is determined based on its overall good (Moreland, n.d.). Through this ethical theory, Joe should focus on maximizing the greater good for the greater number of people involved in this business transaction. This implies that Joe needs to consider the situation at UWEAR, the business goals of Peninsula hotel chains, and the pressure to perform. While reducing the price of the offer may not be ideal for UWEAR, the contract renewal would be beneficial because failure to do so would mean that it would loose the deal to its competitor, Threads4U.
The use of utilitarian ethical theory in this situation is justified by the fact that the complex issues surrounding this business transaction requires identifying an acceptable course of action for all. In this regard, the interests of each of the parties to the deal are taken into consideration in order to prevent making a decision that favors one party at the expense of the other parties. For Joe, this theory enhances awareness of his susceptibility to layoff and the UWEAR's declining sales and profitability.
Reflections The situation encountered at the DFR Insurance Corporation has a twofold moral: ethics are crucial for the success of the business operations, and, the employees are the core of organizational triumph. Also, as it is already generally accepted, organizations need to constantly change and adapt to the conditions of the micro and macroenvironments. In this order of ideas then, they should not implement change only when a major modification
Ethical Decision Making in Sales Organizations The study of marketing, sales and company ethics has a very diverse foundation of empirical and analytical research ranging from gender- and trait-based analysis to the defining of models that seek to capture the dynamics that create ethical paradoxes and drive decision-making in organizations. In the research completed and presented in the article A Framework For Personal Selling and Sales Management Ethical Decision Making (Ferrell,
279-306) and therefore sets the foundation for the development of an ethical culture in the organization. Finally and most importantly, the product manager must concentrate on those customers served with the appliance and put their well-being, safety and satisfaction above personal gain both from a financial and career recognition standpoint. When the corporate culture, exposure to customers of a potentially unsafe product, and the need for staying in compliance to
Bill's Invitation Joe has made considerable progress towards contract renewal between UWEAR and Peninsula Hotel chain and has planned a meeting with his management team to discuss the contract renewal. In light of the challenges relating to decline sales and profitability of UWEAR as well as the increased pressures to perform, Joe is optimistic that the contract renewal between these two firms will help in promoting continued success and employment with
Ethics are essential for organizational success. They influence the decisions made by the employees and managers on issues affecting the performance of the firm (Project Management Institute, n.d.). An organization that upholds ethical behaviors has a culture that fosters not only productivity but also excellence in service and product provision to its target markets. Managers are tasked with the role of ensuring that ethics are upheld in a firm. However,
Cultural Differences in Ethical Decision-Making Using Multidimensional Ethics Scale The objective of this study is to examine cultural differences in ethical decision-making using the multidimensional ethics scale. The Multidimensional Ethics Scale (MES) was developed originally by Reidenbach and Robin (1988, 1990) and is one of the most often used measures in business ethics research. (Lin and Ho, 2008, p.1213) The MES is an instrument found to be useful in business