This website uses cookies to ensure you have the best experience. Learn more

Considering Ethics When Making Business Decisions

1828 words - 8 pages

Considering ethics when making business decisions: The thin line between strategic and immoral alternatives

Business decisions are made with the bottom-line concept as the primary focus. As definitions of business and business ethics evolve, the concept of this focus also reshapes the decision and the decision making process. Case studies have shown that decisions are made by management that involves individual perception as well as business goals. Some scholars such as Drucker (1981) and Friedman (1970) dissent as to what that focus should encompass. The definition of business ethics is the region of the organization that narrowly defined by the goals of the organization itself. Though most organizations readily acknowledge its obligations and responsibilities most disagree as to where the loyalty and full responsibility lies.
Consideration as to where the line is to be drawn between the company’s responsibility to its stakeholders and moral responsibility to the community. What decision is made and how that decision is made, is to be seen in the outcome and possible consequences of that outcome. While a business’ obligation to stakeholders are typically measured by financial results, the moral and ethical decisions are judged by the responses made by the community. To explore this theory, the case of Mrs. Folole Muliaga is examined.
The case study of Mrs. Muliaga details a scenario about a low income family with an ill mother that ends in a tragic outcome. In terms of morals and ethics in business decision making, this case entails “characteristics of high-quality teaching cases” as described by Bridgman (2010). In this case, according to Bridgman (2010) and Eweje and Wu (2010) Mercury Energy decided to disconnect the services of a family whose mother was on oxygen to assist with her breathing condition. The disconnection of the energy services to her home was believed to be the direct cause of her death which occurred only after the interruption of services. It was later discovered that the interruption of was an indirect factor that lead to the death of Mrs. Muliaga.
According to the coroner’s report, the interruption of services was not the immediate cause of Mrs. Muliaga’s death but was instead the cause of the stress that attributed to the already deteriorating set of circumstances. Although the coroner’s report did not implicate Mercury Energy’s action as a culprit in the death of Mrs. Muliaga’s death, the surrounding community had viewed the actions as nothing less than callous and unethical.
The immediate reaction by Mercury Energy’s management only further exacerbated the situation. The initial response from Mercury Energy was the total denial of any wrong doing (ethically or legally). Later the company would acknowledge its lack of full attention to the situation. Eventually the company would also attempt to make amends with the situation by publicly announcing its intentions to address the problem internally via application...

Find Another Essay On Considering Ethics when Making Business Decisions

Using Biblical Principles For Making Wise Business Decisions

2384 words - 10 pages considering whether to increase operations by adding capital projects to existing assets that will help produce either more of its existing products or entirely new products, expansion decisions are made.” CEG Consultants will review all options to best benefit ABC Company for their decision. We realize that the owners of ABC Company are leaning toward a building expansion, but we are hired to bring other options to the table. Rumelt (2011) writes

How to use Research in Making Business Decisions

2258 words - 9 pages address these. As shown, statistics can play an important role when making business decisions. Using the statistical techniques discussed here, a manager can reduce the unexpected, and potentially costly, variances when making business decisions. By reducing the amount of uncertainty, better conclusions can be drawn that will minimize risk and maximize profit gain.References:Cooper, D. et al (2003). Business Research Methods, Eighth edition

How to Use Research in Making Business Decisions

1888 words - 8 pages service and customer retention, managers can increase their focus on customer satisfaction. As shown, a well-planned business research involves gathering data from multiple sources through multiple data collection methods. Using the statistical techniques discussed here, a manager can reduce the unexpected, and potentially costly variances when making business decisions. By reducing the amount of uncertainty, better conclusions can be drawn that

Affect of Cultural Values And Personal Ethics in Business Decisions

1227 words - 5 pages representatives and so on (Colero). The above stated quote gives and excellent informal standards of professional ethics. The informal principles of professional ethics are a blueprint that most people in businesses and many other workplace settings can refer to when some guidelines are unclear. The bullet points supply great characteristics and/or qualities he or she should have in making business decisions or involve these in the critical thinking

Financial Accounting: Tools for Business Decision Making Financial and Managerial Accounting: The Basis for Business Decisions

857 words - 3 pages Running head: TEXTBOOK ASSIGNMENT 1 TEXTBOOK ASSIGNMENT PAGE \* Arabic \* MERGEFORMAT 6 Textbook AssignmentnameACC/400: Accounting for Decision MakingMay 2010instructorTextbook AssignmentChapter 8 of Financial Accounting: Tools for Business Decision Making by Kimmel, Weygandt, and Kieso (2007) is Reporting and Analyzing Receivables. Receivables are "amounts due from individuals and companies that are expected to be collected in cash" (Kimmel

Making Business Decisions I

617 words - 3 pages Introduction/ Scenario Background A business venture that relies heavily on importation of its products is greatly affected by worker’s strike. This condition becomes pronounced when dock workers strike because shipped commodities cannot be offloaded from ships nor any product cleared for transportation irrespective of its perishable nature. Nevertheless, a business venture must position its operations with such scenarios taken into account to

Business Ethics Working Conditions When does a worker's death become murder?

2092 words - 8 pages The first thing that might come into a sane mind when presented with this question is that, if an employee loses his or her life due to gross negligence from their employer, it should be considered murder. I believe that an employer should be held fully responsible for negligent acts that cause the death of an employee, but it doesn't matter what I or anyone else for that matter, believes. What matters is what is written in the law, which is

accounting ethics

1194 words - 5 pages principles into accounting ethical dilemmas or ethical decision-making processes. On the other hand, most business schools provide business ethics course to help both accounting students and other business students. During the business ethics course, accounting ethics principles are incorporated into business ethics. Therefore, not only accounting students, but also other business students can learn some basic accounting ethics principles from

Ethical Practices and Values as a Means to Business Sustainability

1706 words - 7 pages trading still occur thus understanding the importance of business ethic is very important. Business ethics Business ethics is a branch of ethics that guide an organisation to practice good morals and principles in its operations, business ethics examine questions of moral right and wrong when making decisions in and organisation bearing in mind that whatever one decides on behalf of an organisation will not only affect the business but the

My Personal Ethics

1115 words - 4 pages According to the New Oxford American Dictionary, ethics is defined as “moral principles that govern a person’s or group’s behavior.” Therefore, in an ideal world, ethics should play the ultimate role when making a decision. If ethics are the principles which guides one’s behavior then, ideally, all decisions should be made entirely based on ethics. Unfortunately, such is not always the case. A few problems arise when one tries to make an


1502 words - 6 pages In today's world, it is important for companies to foster ethical decision-making.Ethics is relevant to business. Whilst 'Ethics' commonly refers to 'the rules or principles that define right and wrong conduct'. Ethics deals with human activity. It is not a single, simple concept but can be best understood by considering a number of perspectives: · Ethics can be viewed as philosophy - i.e. philosophical thinking on morality, moral

Similar Essays

Ethics In Making Decisions. Speaks Of Managing

661 words - 3 pages Written Assignment #2Challenger Case #1There are so many instances in life where ethics play a major role in decisions that we, as humans, make. Ethical decision making processes take place mostly when conclusions are reached that directly effect people, but what are ethics? The Random House-Webster¹s Dictionary of Modern English defines ethics as: The branch of philosophy dealing with values relating to human conduct, with respect to the

How Far Does Situation Ethics Give A Practical And Modern Way For Making Moral Decisions Religious Studies Ethics Essay

559 words - 3 pages How far does situation ethics give a practical and modern way for making moral decisions. Situation ethics is a flexible theory that can be applied and adapted to every situation. For example, homosexual relationships are seen as wrong by most religious believers and by some atheists. However, situation ethics gives a different approach to homosexual relationships; as long as the relationship is based on love and not lust it is acceptable

Leadership And Ethics Course, Through Military Discussing Ethical Decisions As They Relate To Utilitarian Teleologist, Kantian Deontologist And Decision Making,

3080 words - 12 pages is that of a Kantian Deontologist (KD) who's reasoning would be to follow the order to evacuate, leaving them there. Their ethical reasoning is related directly to performance of their duty, following orders given to them by command and not of an emotional feeling. Kantian is derived from the philosopher Immanuel Kant whose ethics are founded on rationality as the higher good, and that people are rational beings. When making a decision you must

Ethics In Business Decision Making Essay

993 words - 4 pages The field of ethics (or moral philosophy) involves systematizing, defending, and recommending concepts of right and wrong behavior (Fieser, 2009). Many of the decisions one faces in a typical day could result in a multitude of outcomes. At times it can be hard to determine whether or not the decision you are making is an ethical one. Many philosophies have been devised to illustrate the different ways of evaluating moral decisions. Normative