Ethical Dilemma Case Study: Favouritism In Acme

Question

Task: A Case study will be provided comprising answers to three case study analysis questions. The business report format is required for the submission.
The business report format is required for the individual assignment. The headings and subheadings are strongly recommended to structure the business report. The Harvard Referencing Style is required. For detailed requirement, please refer to the guidelines of how to write Business Report and academic writing style. It is strongly recommended to review SLS learning Enhancement Section in APIC Canvas. The link of Business Report Guideline was provided in the assessment section of this subject in the Canvas.

Answer

Q.1. Influence of conflict of interests on salespeople, organisational culture and stakeholdersbased on the ethical dilemma case study
Ethics are important element in any business, which defines morals, values and principles governing the business practices and decisions of an organisation. It determines the best way to treat the employees, customers and other stakeholders of the business. The ethical dilemma case study mentions about the situation of conflict of interests due to the favouritism in the company, Acme incorporated. The situation of conflict of interest arises in an organisation, when an individual overlooks the interests of other people or organisation, in an attempt to fulfil their personal gain. Conflicts of interests often lead to the legal ramifications in a business affecting their practices, and goal achievement (Weerts, Vermeulen and Witjes, 2018).

The organisation, Acme Incorporation is ethically obliged to treat all the employees in equal and fair manner, with respect to their job-specifications. This would promote an effective employee- equality based organisational culture. In the given ethical dilemma case study, the boss of the company favoured Deon, by giving him the best clients, irrespective of other salespeople’s interests. This shows the act of favouritism, or partiality due to their personal interests. Therefore, conflict of interest will be affecting the employees working on the basis of the finance to a certain extent (Crane et al., 2019).

This action taken by Deon has negatively influenced the performance of other employee such as Mary, who has to suffer economically and financially due to favouritism. Moreover, the sales of other salesperson have decreased substantially, which has led to a reduction in the salaries of other employees. Besides, they will have to face the deprivation in terms of competitive pay, promotions, incentive and other health benefits by their employer. It mainly impacts the culture of equality and respect to all the employees at the workplace. On acknowledging the fact of favouritism, other employees will lose their trust on the management and would develop a sense of resentment and anger towards Greg, and the organisation(Evans, Allen and Clayton, 2016).

The readings of ethical dilemma case study signify that communication and commitment of the employees will affect their team-work and subsequently reduce the overall organisational productivity. Inequality in the treatment of employees would turn into lack of motivation and poor performance in the longer period. Inefficient performance of employees, lack of transparency, and inconsistent policies may create an issue for the investors, to invest in the resources and projects. The company should treat all their stakeholders equally to avoid the situation of conflicts of interests. The managers of the payroll department and the owners of the organisation must establish and revise their policies to mitigate this conflict amongst employees. Additionally, training can be given to the employees for up gradation of their skills and abilities for improved performance to increase the sales volume. This would gain a positive change in the attitude and working of the employees, determining effectiveness in the organisational performance. Research studies considered to develop this ethical dilemma case study analysis have stated the negative impact of the conflict of interests on the economic, social and financial development and growth of the organisation. Hence, the managers of Acme incorporation must undertake necessary action to mitigate this issue of favouritism, and ensure fair and equality amongst all the employees to achieve effective results (Ciobanu, Androniceanu and Lazaroiu, 2019).

Q. 2. Decision taken by Jayla and potential ramifications of her choice.
From studying and reviewing the conflict of interests and favouritism as major issues in the organisation, Acme incorporation, it is must to undertake significant decision. Conflicts of interests affect the employee’s commitment towards attaining a common goal, which then affects the decision-making process of the management (Vveinhardt and Sroka, 2020). Herein ethical dilemma case study analysis, Jayla has to decide about the situation of ethical dilemma about conflict of interest and identify a suitable alternative approach to deal with this issue to ensure equal and fair treatment to other employees. As found in the case,Jayla wanted to work in the company as a permanent employee, which implies that her decision and choices may have serious implications on her performance and job-position within organisation (Lorincová et al., 2019).

One effective action and decision that Jayla could emphasize, is discussing the matter with the senior management and higher authorities such as the CEO of the company. This could be one suitable approach because they have the legal authorities to regulate the actions of general manager and head of the payroll department. In this way, a new policy related to the sales team can be generated, which would ensure creating and maintaining the employee-equality organisational culture. Also, this would assist other employees to work with the best clients in an efficient manner, leading an increment in the sales (Heckler and Ronquillo, 2020).

In context to the theory of Utilitarianism with regards to the ethical dilemma case study, the decision of Jayla, speaking to higher authorities is duly acceptable. This theory states that an action is regarded as moral, if it produces the greatest good for the maximum people. Consequently, this is suitably right action to be taken for the good of other employees and individuals working in the organisation. The theories comply with the theories of business ethics and sustainability, safeguarding the reputation of the company. Another important action to be taken by Jayla includes assuring the confidentiality of her name regarding this matter with the CEO, so that Deon or Mia may not know about her decision. This is essential to prevent herself and secure her job because they may devalue her performance and dismiss her from the organisation (Newman, Ford and Marshall, 2019).

These can be the possible ramifications of her choices and decisions on her work and job in the described situation. In context to the issue of partiality towards other employees, Jayla can act in the support and work with better team efficiency to foster integrity and teamwork in the organisation. This is an important step to maintain the trust and confidence of workers in the management and members of the organisation. Jayla is in a complex situation, and she may have to encounter with the difficult consequences. If Deon and Mia get to know about her step of speaking up to higher authorities, it may affect her evaluation (Cantele and Zardini, 2018).

Besides, it may also lead to riots and conflicts between the other salespeople due to revelation of this issue identified from the given ethical dilemma case study, which may have serious impacts on their relations and team-efficiency. Despite of all this, it is essential for Jayla to take a moral step. CEO and other senior authorised persons will be able to take a close look at the situation, and propose some action for the benefit of other employees. The motive behind taking this decision would be fulfilled, and this would benefit the employees such as Mary and improve their performance and financial development. In this way, the situation may be resolved effectively and lead to a sustainable and growth-oriented organisational culture (Rabl et al., 2020).

Q. 3. What are the legal ramifications of her behaviour and the potential consequences (if any) considering the ethical dilemma case study?
In context to the given ethical dilemma case study of Acme incorporation, it is understood that conflict of interests has been seriously impacting the personal and professional development of other employees. Therefore, Jayla’s action is justified and considered to be moral. Adverse behaviour or resentment of employees may lead to ineffective business performance and low workplace morale, which could further influence the objectives and profit-making. It is studied through research that in many cases, conflict of interests in the organisations often leads to legal ramifications and job-loss of the employees. These consequences are mainly observed in the circumstances, when the conflict of interest situations is disapproved by authorities, or the person continues to favour an employee for their personal gains. Therefore, it is generally advised to resolve these issues of conflict of interests effectively to avoid any serious complications (Filip et al., 2016).

Technically, there are no legal ramifications as such in this scenario ofethical dilemma case study for the conflict of interest in the organisation. The term legal ramifications generally refer to the consequences that occur due to a fraudulent act or anything considered as a monetary crime under law. Considering at this case, there is no such act of monetary crime or wrongful doing and behaviour of Jayla which would lead to legal ramifications. Code of ethics and sustainability ensures the determination of the conflict of interests in every individual business. Thus, conflict of interests and favouritism precisely reflect upon the incompetent and disorganised work-practices, affecting the business affairs and work-relations (Wilson and Pender, 2017).

Therefore, it is the duty of HR manager and payroll department to solve these issues at their level, and avoid any major consequences. On the other side, if there could be any consequences, Deon the head of the payroll department may conduct a bad evaluation of her performance if she discusses this matter either with him or Mia. However, in the given ethical dilemma case study if Jayla gets fired by Deon she can file a case and sue them for the wrongful termination of her job. This is justifiable course of action because she has informed them about the conflict of interests, and unfair treatment of employees in the organisation(Wilson and Pender, 2017). Every business organisation must ensure developing and revising their internal policies to fulfil employee interests and avoid any dispute in the work practices. Thus, from the above ethical dilemma case study analysis we can state that there are no legal ramifications or critical consequences of this action taken by the intern Jayla in an attempt to maintain the integrity of the organisation.

References
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Ciobanu, A., Androniceanu, A. and Lazaroiu, G. (2019)An integrated psycho-sociological perspective on public employees’ motivation and performance. Frontiers in Psychology, 10, p.36.

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Evans, W.R., Allen, R.S. and Clayton, R.W. (2016) Ethical leadership: Not everyone responds equally. Organization Management Journal, 13(4), pp.215-229.

Filip, I., Saheba, N., Wick, B. and Amir Radfar, M.D. (2016) Morality and ethical theories in the context of human behavior. Ethics & Medicine, 32(2), p.83.

Heckler, N. and Ronquillo, J.C. (2020) Effective Resolution of Ethical Dilemmas in Social Enterprise Organizations: A Moral Philosophy and Public Management Approach. Public Integrity, 22(1), pp.39-53

Lorincová, S., Štarcho?, P., Weberová, D., Hitka, M. and Lipoldová, M. (2019) Employee motivation as a tool to achieve sustainability of business processes. Ethical dilemma case studySustainability, 11(13), p.3509.

Newman, S.A., Ford, R.C. and Marshall, G.W. (2019) Virtual team leader communication: employee perception and organizational reality. International Journal of Business Communication, p.2329488419829895.

Rabl, T., del Carmen Triana, M., Byun, S.Y. and Bosch, L. (2020) Diversity management efforts as an ethical responsibility: How employees’ perceptions of an organizational integration and learning approach to diversity affect employee behavior. Journal of Business Ethics, 161(3), pp.531-550.

Vveinhardt, J. and Sroka, W. (2020) Nepotism and Favouritism in Polish and Lithuanian Organizations: The Context of Organisational Microclimate. Sustainability, 12(4), p.1425.

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