Theories on Organizational Ethics

Ethical Theories

The objective of this study is to explain ethical theories and apply that knowledge to how organizations would function were they to adopt those ethical principles. In addition, this study will examine punishments for corporations and present ideas about the relationship between ethical demands on business entities vs. those on individuals in society This study will first select a Not-for-Profit and a For Profit organization specifically those of Susan G. Komen and Merck.

Nancy G. Brinker made a promise to her sister Susan G. Komen, who was dying that she would do all in her power to bring an end to breast cancer and in 1982, Susan G. Komen, a not-for-profit was launched and became the global movement for breast cancer. More than $2.5 billion has been invested in fulfilling the promise that Brinker made to her sister and toward working to bring about an end to breast cancer in not only the United States but throughout the world.. This is being accomplished through "ground-breaking research, community health outreach, advocacy and programs in more than 30 countries." (Susan G. Komen, 2014, p. 1) The Komen corporation has held a critical role in the fight against breast cancer including: (1) more early detection and more effective treatment; (2) more hope; (3) more research; and (4) ultimately more survivors of breast cancer. (Susan G. Komen, 2014, paraphrased) Merck is a for-profit organization that makes claims to discovering new approaches in fighting cancer and diabetes. Merck has worked to discover and develop vaccines for more than 100 years and it is reported that the Center for Disease Control holds that "immunizations are one of the ten great public health achievements of the 20th century in the U.S." (Merck, 2014, p. 1)

I. Three Ethical Theories

Three ethical theories examines in this study are those of: (1) Utilitarianism; (2) Deontology; and (3) Care Ethics. Utilitarianism is in regard to the "overall pleasure and pain for all concerned." (Sadler, 2001, p. 1) Deontology has to do with "duty." (Sadler, 2001, p. 1) Finally, Care Ethics has to do with "relationships, vulnerability, and empathy." (Sadler, 2001, p. 1) The organization that operates according to the ethical theory of Utilitarianism is one that creates products that serve the best of the most individuals and that create their products that serve to harm the lowest number of individuals possible. Employees under the ethical theory of Utilitarianism are treated in a manner that makes the highest possible number of employees happy and satisfied with their treatment and resources are managed in a manner that serves the good of the highest possible number of employees. From the view of the ethical theory of Deontology, employees are treated according to the organization's prescribed duty and as well their products are manufactured in this manner and resources are managed according to the organization's duties. The organization that follows the Care Ethics ethical theory manages their employees, their manufacturing processes and their resources according to the tenets of how each impacts relationships with their employees, the vulnerability of employees and according to empathy for their employees.

II. Outcomes of Lack of Ethics in Organization

The outcomes of a lack of ethics in the organization serve to impact the organization as a whole and to impact the organization in the long-term. For example, lack of ethics in the organization results in the organization experiencing legal issues. (Zieger, 2014, paraphrased) Rules and procedures are established in the United States by the federal and state governments concerning how the organization should be run and organizations that fail to follow the federal or state guidelines are faced with fines and other penalties. (Zieger, 2014, paraphrased) Secondly, executives of companies that act unethically may face criminal charges for their unethical behavior and the harmful practices that follow. Employee performance is negatively affected by unethical behavior in the organization and this results in carelessness on the part of employees who experience a lack of motivation due to the organization's methods and procedures when there is a lack in organizational ethics. (Zieger, 2014, paraphrased) Another impact of lack of ethics in the organization is the organizations' loss of credibility which serves to impact the business due to the public's view of the organization and its products and can result in a decrease in sales as the organizations' products are no longer considered to be desirable for purchase and use. The organization should be required to function according to the same codes or morality that individuals in society are required to abide by and should be held to the same standards of ethics of the everyday public. This is because the organization cannot exist without ethical standards because the public will not support the organization that is unethical and this results in the organization failing.