How does the situation facing John constitute an ethical dilemma?
Using two normative theories of ethics comment on the ethical aspects of the situation.
Business is an organisation or economic system where products and services are traded for money, a product or services. Businesses need investment or customers to make a profit and survive. In business, ethical issues may arise for example false advertising, misleading the public, exaggerations and disclaimers. In this case study the ethical issue identified is an exaggeration of how much the company makes and falsifying of documents by signing off on an order that has not yet been finalised. Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are evaluated. “Business ethics, ultimately, is just business in its larger human context” (Solomon, 2009, p.37). Ethical dilemmas such as financial management, corporate social management, corporate governance, shareholder relations, insider trading, and discrimination are examined by business ethics. Ethical dilemmas arise in situations where there is no right or wrong answers, usually a complex moral issue that needs to be resolved, a choice needs to be made between ‘right’ and ‘right’; choosing the best of the worst. It is not normally easy to reach an outcome but the dilemma can be solved in different ways depending on each person’s situation, background, personality, beliefs, life experiences as well as taking factors of law, morals and society norms into account when analysing, processing and making a fully informed morally ethical decision. The process of solving such complex issues involves analysing the issue itself, looking at possible consequences, making an ethical decision and implementing this into action. It is important that businesses have set moral principles to abide by. All businesses need a solid foundation as a starting point for future success in our world today.
A business is only successful by adhering to the law, company rules, regulations and principles; serving the investors, shareholders, customers, employees, suppliers, management and the local community. In this case the company is venture-backed which means it needs to show investors that there is growth. Ralph is feeling pressure to show investors that the company is doing well and therefore putting pressure on John. John is under pressure to abide by the law, company policies, rules and principles. John has his own view of morals, beliefs and corporate ethics whether Ralph has the same view of such concepts is not an issue as both of them are bound by their duty to fulfil their roles as CFO and CEO in the company to show investors results.
Ethical theories in business are regulators of the business world, keeping a balance, normalising and linking laws, policies and regulations of law with a human aspect to morals and ethics. Ethical theories are divided in two categories,...