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

Ethical Conflicts That Can Arise Within Companies

2483 words - 10 pages

The problem to be investigated is the conflict that can arise within companies between doing what is right (or moral) and doing what is often viewed as more important the attainment of corporate goals. This conflict is highlighted in the case study involving Fannie Mae (FM). (Jennings, 2009) In this case, corporate executives choose to focus on corporate goals and meeting the market expectations, ignoring any moral issued witch conflicted with the attainment of their goal. (Jennings, 2009) To understand the reasons for the executives actions and learn from their mistakes and misjudgments the following topics are reviewed: 1) ethics and social responsibility, 2) the importance of devolution, 3) the power and value of incentive plans, 4) the rational for legitimate income smoothing, and 5) the impact of pep talks.

FM is a federally chartered shareholder-owned corporation. The organization is charged with the goal of increasing affordable housing availability and to attract investment in the housing market. Coupling the federal charter and the goals of shareholders FM needs to walk a fine line between ethics and business practices. FM was named the most ethical company in the United States by Business Ethics magazine in 2004. (Jennings, 2009) Unfortunately, there was a darker side to the FM story. Corporate executives choose to focus on corporate goals and meeting the market expectations, ignoring any moral issued witch conflicted with the attainment of their goal. (Jennings, 2009) To understand the reasons the reader needs to be aware of several pieces to the FM situation including: 1) ethics and social responsibility, 2) the importance of devolution, 3) the power and value of incentive plans, 4) the rational for legitimate income smoothing, and 5) the impact of pep talks. (Jennings, 2009)
Ethics Recognition
Ethics is the culmination of many traits. These traits include: personality, attitudes and individual characteristics. To look at ethics, one must understand that any situation involves looking at an ethical situation critically understanding the numerous drivers of the behavior. To understand ethical behavior is realize the relationships between theory, law and personal morality as they relate to the situation. (Solberg, Strong, & McGuire, 1995)
Though often used interchangeably, there is a significant difference between social responsibility and ethics. Social responsibility is generally the idea of large corporations having a strong role of “citizenship” in a community. Ethics, on the other hand, is the personal and individual values and beliefs. (Sternberg, 2009) Social responsibility does have a moral aspect to it whether implied or expressly written. (West, 2009)
Defining what is moral or ethical is not easy. Different societies and different individuals have different beliefs. Though there may be some commonalities to these beliefs there are also differences. (Clarke, 2004) Clarke...

Find Another Essay On Ethical Conflicts that can arise within Companies

Ageism: Combating Discrimination in the Workplace - all about companies that discriminate against older workers and what can be done about it

844 words - 3 pages desire for information and knowledge remains stable and do not decrease with age, but can actually increase if it pertains to an interest or area of expertise (Reio et al., 2-3). Lastly, enacting laws that thwarts companies' ability to innocuously hire within certain age ranges while transparently overlooking the individual's knowledge and ability may be a key to overall success. Only by overcoming these obstacles and promoting the use of older

Please Comment On The Effect That Alliances Such As Apple And Microsoft Can Have On Competition Within The Context Of Operations Management

472 words - 2 pages both cultures adapted so that the core activities reflect the companies business aims. The cultures of these two companies, Apple and Microsoft are too far removed to nurture a successful alliance, and it appears that when the alliance was formed no negotiation took place which looked at the core objectives and focused on, how structurally, both companies could achieve these aims.

More than meets the eye. This essay outlines the issues with didital manipulation within the media. It expresses that even the slightest change to an image can have a great impact upon the truth

575 words - 2 pages a democratic country.It is a thin, line in determining what manipulation is acceptable and what is not. Even giving an image a certain label have a major impact. Snipping someone out here and placing him or her somewhere else in theory doesn't sound bad. Yet when one look's at the potential impact a simple act like that could have on an issue, it reveals itself as being an aid to deceive anyone who looks upon the image. These techniques can be

System of Inquiry

1733 words - 7 pages the more general ethical issues that might arise. In order to make sound ethical decisions within the organization, employees can explore the Code of Conduct and find the discussions regarding the ethical aspects of a decision and weighing the alternatives that may affect the choice for a business action and discipline. The Code of Conduct will result in greater ethical awareness, consistency in application, and the avoidance of ethical

Contemporary Ethical Environment in Information Technology

888 words - 4 pages focus on these professional requirements for ethical behaviour. It will argue that professional conduct is key to averting and resolving ethical conflicts that arise in information technology. The word ethics refers to a collection of principles about right and wrong conduct within a society. Ethical behaviour conforms to generally accepted norms, most of which are universal (Reynolds, 2012). The range of ethical issues in information technology

Unethical Decision Making

1779 words - 7 pages polices, and collecting artifacts that were related to governance, trust, and ethics. By using the holistic multiple case designs, it allowed Müller et al. (2013) to use a sampling method, which isolated the companies that had similar underlying ethical themes on a broader level. From using the sampling method, a single participant was located within each of the companies, screened, and interviewed to determine eligibility to participate in the

Corporate Ethical Management System

2146 words - 9 pages battle of business ethics by failing to develop long-term strategies to address ethical dilemmas and decision-making at higher levels within the organization (Ludwig & Longenecker, 1993). Increasing governmental pressure to comply with rapidly developing laws to correct corporate misdeeds, both intentional and unintentional, has tasked many companies with taking a proactive approach to ethical standardization. Corporate leadership and management set

Management - Business Ethics/ System of Inquiry Paper

2168 words - 9 pages outside source so that the organizational culture is completely changed and not made to be superficial. Reorganization can be good for the owner, the company, and the employees and can add value to the company. Since a companies value determine what one considers to be right or moral behavior companies should come up with a code of ethics that reflects the values of that company. Small businesses with ethical behaviors are companies with respect and

Business Ethics

1764 words - 7 pages smallest decisions will show a business owner's true colors. However, they will not be standing by their bad decision when the consequences arise. (Aileron) One of these consequences can include a lack of customers.Customer RelationsCustomers are a major part of a business, and they can be directly influenced by a business's ethical procedures. There are a few things that will help a business when it comes to ethics and their customers. The first

Ethical difficulties faced by multinational companies in today's business world

3988 words - 16 pages bribes was a common practice and that it was expected in business in Japan. Do you think what he said is acceptable? "Are those who accede to bribery equal in guilty to those who demand bribes?" (DeGeorge, 1982, P.53) Ethical difficulties therefore arise for multinational companies: what is right decision under such circumstances? The Case of Geletex, Inc. very well addressed these conflicts within MNCs when doing business in different country

Value Chain Analysis

1868 words - 8 pages , you can already see where conflicts can arise when people are making “ethical” decisions. People can start making decisions depending on themselves and situations they have encountered instead of looking at the issue as what it is. A strong ethical culture that is practiced with in someone’s business is important because it not only affects the employees but also the way the public looks are your company as a whole. Many professions are faced

Similar Essays

(5 Min. Speech)Explain The Role Of The Family Court Of Australia In Dealing With Issues That Arise Within Families. Make Reference To A Case/S

1008 words - 4 pages on with their lives. Delay minimisation programs undertaken by the Court can help in the short term. The Court has also introduced improved case management processes to help address the problem of delay and unnecessary cost (for e.g. the Magellan Project).All in all, the Family Court has dealt with issues that arise within it's jurisdiction effectively, through law reform, constant review and the reliance upon primary dispute resolution. However

Critically Evaluate The Competitive Advantage That Can Be Gained By Companies Through Is/It Outsourcing.

913 words - 4 pages Imitability is a feature that determines whether competitor copying and copy a resources from this company. If a resource or capability is valuable but not costly to copying, exploiting these resources will generate a temporary competitive advantage for the firm and above-normal economic profits. Companies that exploit these resources will gain first mover advantage as it is the first organization that can exploit certain resources. However

Airline Technology: The Technologies That Can Help Creating A Competitive Advantage For Companies.(With In Text Reference)

1141 words - 5 pages joined hands with Intel and made it possible for people to travel with their favourite TV shows by introducing a new feature TiVo to Go ("TiVo", 2005).Travellers can easily transfer TV shows from their TiVo sets (a box thatautomatically finds and digitally records tv programs) to portable media centers. This feature provides customers with the flexibility and control of choosing what they want to watch ("Tune In", 2005).Companies like "Inmotion

Establish Whether There Is An Ethical Theory That Can Be Successfully Applied To Business Organisations

2784 words - 11 pages The object of this essay is to establish whether there is an ethical theory that can be successfully applied to business organisations. In order to answer this question, it is necessary first to define the major ethical theories, which are utilitarianism, deontology and virtue ethics, before determining whether there are any other options. After that, the ethical needs, problems and limitations of work organisations will have to be examined so