Posted: February 16th, 2022
Ethics has been described as the moral standards utilized to discern what is right and wrong. With business, ethics are critical because they require firms to follow laws, act in fairness, with honesty, integrity, and adhere to a specific code of ethics. Making ethical judgments in a corporate context is not always straightforward, and some instances might lead to moral quandaries when the available solutions contradict the person in charge’s ideals (Ferrell 501). However, in a corporate setting, the leader is involved in decision-making that should prioritize the needs of the majority.
In the preceding example, Harmony, a senior accountant at a bank, learns that two branches failed to meet the specified sales goal for the second straight quarter. The company’s policy demands that the branches be shut, but Harmony believes that her principles conflict with the company’s policy. She feels terrible for the people who will stand to lose their employment. Concerning business ethics, her choice to exaggerate and manipulate the data prioritizes the interests of some in a massive firm above the interests of all stakeholders. As a consequence, her intention was flawed, and she acted unethically.
(Ferrell 501) mentioned that unethical action always has repercussions, and Harmony’s behavior is no exception. Harmony may be dismissed if the bank’s management learns that she has not acted in good faith in her assigned position by falsifying financial statements statistics.
Some of the hazards associated with Harmony’s unethical activities include the corporation going bankrupt, which may lead to the bank’s demise if the branches keep falling short of their sales objectives. Lehman Brothers is an example of a corporation that failed owing to unethical managerial practices, and Harmony Bank is in danger of the same fate. If the bank fails, all workers, including Harmony, will be out of work.
I would advise Harmony to accept that, in her current position, her moral standards cannot take precedence over business ethics, which necessitates her to prioritize stakeholders. As a result, she should terminate the two branches according to the correct procedure. This also helps to motivate other units to reach their sales targets and contributes to developing an ethical culture within the bank.
Ferrell, O. C., et al. “Business ethics, corporate social responsibility, and brand attitudes: An exploratory study.” Journal of Business Research 95 (2019): 491-501.
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