Valerie\'s Dilemma the Instruction File Attached. \"How

Valerie's Dilemma

The instruction file attached.

"How Personal Can Ethics Get?"

Discuss how personal differences and preference can impact organizational ethics.

An organization is only as 'good' as its people. Vigilant ethical policies in writing are only useful if they are diligently upheld by the organization's leadership. In the case of Valerie's company Wilson Fragrance, this is obvious, as her superior Lionel Waters has engaged in flagrantly unethical policies virtually since his first days at the company. Personal politics rather than true ability dictate promotions and hiring. One of Waters' first actions was to hire close friends as executives with salaries described as well above industry standards and to give himself six weeks of vacation. This sets a lax ethical tone not simply for individuals immediately beneath Waters, but the entire company.

However, clearly dictated policies can at least reduce the chances of such actions affecting others. Because Waters was able to continue his illegitimate actions for so long, it suggests there are no firm guidelines detailing the qualifications for hiring of managers, or for their salaries and vacation days. Of course, there is also little incentive to question such actions amongst lower-level members of the company, given that they fear their jobs can be threatened, and the fact that the organization has become heavily factionalized and polarized contributes to a lack of a sense of a larger mission for the organization.

Since then, Waters' unethical policies have continued and the company has suffered. Wilson Fragrance could clearly benefit from getting the best, lowest-cost fragrances and entering into competitive bidding. But Waters has placed self-enrichment above company needs. Now, the two fragrance companies that Wilson works with exclusively have paid Waters in "commissions and fees" totaling almost $35,000 per month. It is difficult to believe that Wilson does not have an ethical code that prohibits such kickbacks, although its ethical policies might not be specific enough. More importantly, not having careful monitoring and swift enforcement has allowed a culture of corruption to fester. Not only must an ethical policy be clear, but there also must be enforcement mechanisms. In the absence of such, a Waters-like situation can very easily occur and personal interests rather than the interests of the company will prevail.

Q2. Discuss how organizational policies and procedures can impact ethics.

Organizational policies and procedures are often more important than stringent ethical sanctions when promoting an ethical environment. This is clearly manifest in the case of Waters' behavior. While kickbacks are blatantly unethical, Waters seems to know that unless the revelations of his actions are made public, he has little to fear. His powerful position clearly seems to protect him, in his mind. This is an all too common problem at many companies. Although lower-level workers may suffer negative consequences if they violate strict company policy, the higher ups on the organizational 'food chain' are left alone. There are simply fewer people monitoring the ethical actions of the top executives.

However, a lack of ethical oversight has a trickle-down effect. As well as his underhanded actions, Waters has engaged in actions that show disrespect for the company that are quite obvious to underlings as well as to executives and managers. Waters has little sense of a work ethic, for example. He frequently takes vacations, which makes it difficult for him to seem credible when urging others to come in early or to stay late, and to encourage employees to be mindful of their work obligations when personal matters intervene.

Waters engages in many self-aggrandizing actions. Just to show off his horseback riding talent, he rented an entire stable outside of Chicago for one hour and expensed it to the company. Unlike a golfing event, there is no sense of community or 'team building' that is fostered -- no justification can be given for this extravagance. Nor is there any charity component. Although companies may undertake actions that are both for the public good and for self-promotion, like sponsoring public charity events, Waters' actions clearly cross the line into excess for excess' sake. When organizational leaders allow these policies to go on, employees do not have a larger sense of mission and purpose to guide their work. Employees will not give back to the company during 'crunch times' and exhortations to go above and beyond what is stipulated in their job descriptions ring hollow. Resentment and bitterness is likely.

Q3. Discuss the ethical dilemmas that Valerie is facing.

Valerie has discovered information by accident that clearly indicates that her boss is involved in a kickback scheme that violates the integrity and financial health of the company. A number of interests could be damaged because of Waters' actions.

Shareholders

As a for-profit company, Wilson Fragrance has a responsibility to its shareholders to make a profit and to act in a manner that will ensure that the company is financially solvent in the future. However, Waters is placing his own interests above those of the company. Valerie has a responsibility to the shareholders to reveal what she knows.

Other companies

Because Waters refuses to deal with other fragrance companies, these blameless entities are expending costly time and resources in making 'bids.' Yet they will not receive a fair hearing, because they are not giving kickbacks to Waters. Valerie knows these companies are acting in good faith, and has a responsibility as an employee to treat them ethically.

Other employees

Workers are being hurt because of the unfairness of Waters' actions, which enables him to profit off of his position in a unique fashion.

To herself

Valerie is conflicted because she knows if she speaks too soon, she might incur the wrath of the company if they support Waters. She does not want to lose her ability to work in the U.S., or her chance at an education. She feels a divided sense of responsibility to her family and to her own future, although she feels she has an ethical duty to come forward. The fact that she accidentally found out about the misdeeds and does not like Waters as a person may cause her further moral conflict, and possibly make her less likely to be believed by company leaders.

Valerie is trying to balance her personal interests with what she knows is right by deciding to come forth at a later date, when her job, her ability to finish her degree, and her immigration status is less in doubt. However, this means that Waters' unethical actions are likely to continue, and the other organizational stakeholders will still be hurt by his negative behaviors. Finally, Valerie must deal with the perfume companies in question, which means that she must put on a false face and imply that they have a chance at winning a contract with Wilson, even though she knows, based upon her insider information, that this is hopeless.