Historical Ethical Dilemmas

Marcus A. Smith

MGMT314: Management Ethics

Prof. Brent Webber

August 22, 2024

Abstract

This paper looks at common unethical behaviors in the workplace and how leaders can address them. It also explores how business ethics have changed over time, the 2007-2008 financial crisis, and the importance of diversity and corporate volunteer programs.

Business ethics are constantly changing as organizations face new challenges like new laws, social responsibilities, and cultural changes. This paper will discuss common unethical behaviors in the workplace, how leaders can help correct and prevent these issues, and how business ethics have evolved over the years. It will also look at the 2007-2008 financial crisis and discuss the importance of diversity and corporate volunteer programs.

Unethical behavior in today's workplace includes a few common issues. One problem is fraud and misrepresentation, where employees lie or manipulate data to benefit themselves. Another issue is discrimination and harassment, where people are treated unfairly based on race, gender, or age, religion, sexual orientation, etc... Conflicts of interest occur when employees act in ways that benefit themselves rather than the company. Corporate espionage, where confidential information is stolen, is another serious issue.

Leaders can help prevent, correct, and reduce these unethical behaviors by setting clear rules about what is acceptable, promoting honesty and openness, providing regular training on ethics, and making sure there are consequences for breaking the rules (Beauchamp & Bowie, 2004; Trevino & Nelson, 2017).

Business ethics have changed a lot over the past century. In the early 1900s, companies and organizations mainly focused on making money with little regulation. By the middle of the century, companies began to care more about their social responsibilities, due to societal changes, new laws and regulations, social acceptance, and generational changes. Today, businesses are generally more ethical, thanks to stricter regulations and greater public awareness (Carroll, 1991; Morris & Morris, 2021). Globalization has also introduced new ethical standards that companies need to follow. And for many companies, ethics in one country is not the same in other countries.

The financial crisis of 2007-2008 was caused by both individual mistakes and problems with the financial system. Many people in finance acted unethically, driven by greed and lack of accountability. At the same time, there were issues with the financial system itself, such as poor oversight and risk management (Rajan, 2010).

From an ethical perspective, the crisis can be analyzed through different theories. Utilitarianism, which focuses on the greatest good for the most people, was ignored as short-term profits were prioritized. Deontological ethics, which emphasizes following rules and duties, was also disregarded (Sunstein, 2009).

Diversity and discrimination are important issues for leaders to manage. Ensuring fair treatment and creating an inclusive work environment help avoid legal problems and improve employee satisfaction. Additionally, companies who have a diverse workforce are seeing signs that the diversity is improving sales, productivity, morale, and many other positive benefits. Mismanaging these issues can lead to serious consequences, such as costly lawsuits and a negative impact on the company’s reputation (Cox, 1994).

To address these issues, leaders should provide diversity training, implement clear policies against discrimination, and foster open discussions about inclusivity (Thomas, 2004).

Corporate volunteer programs can be a good idea for companies. They help improve the company’s image, build community relationships, and engage employees. However, there is a risk that these programs might be seen as insincere or as a way to gain profit rather than genuinely helping others (Brammer, Millington, & Rayton, 2007).

From an ethical leadership perspective, these programs should be implemented with genuine intentions and clear goals. If done right, they can show a company’s commitment to social responsibility (Porter & Kramer, 2006).

In conclusion, business ethics have evolved over the years, with modern companies generally showing better ethical practices. However, challenges still exist. Good leadership, attention to diversity, and thoughtful implementation of corporate social responsibility programs are key to navigating these challenges.

References

Beauchamp, T. L., & Bowie, N. E. (2004). Ethical theory and business. Pearson.

Brammer, S., Millington, A., & Rayton, B. (2007). The contribution of corporate social responsibility to organizational commitment. International Journal of Human Resource Management, 18(10), 1701-1719.

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39-48.

Cox, T. (1994). Cultural diversity in organizations: Theory, research, and practice. Berrett-Koehler Publishers.

Morris, T., & Morris, L. (2021). Business ethics and the evolution of corporate governance. Journal of Business Ethics, 169(3), 543-558.

Porter, M. E., & Kramer, M. R. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, 84(12), 78-92.

Rajan, R. G. (2010). Fault Lines: How Hidden Fractures Still Threaten the World Economy. Princeton University Press.

Sunstein, C. R. (2009). The future of the financial regulatory state. Journal of Financial Regulation and Compliance, 17(4), 339-357.

Thomas, D. A. (2004). Diversity as fact. Harvard Business Review, 82(9), 120-128.

Trevino, L. K., & Nelson, K. A. (2017). Managing business ethics: Straight talk about how to do it right. Wiley.