Ethical analysis: Assignment 1

Is it Ethical to Accept Gifts in an Organization or not.

Submitted to:
Dr. Gurparkash Singh

Submitted by: Vikas Sharma Roll # 501104027

Assistant Professor LMTSOM, Thapar University, Patiala

Date & Time of Submission: 17th August, 2012, 1700 Hrs Word Count: 1100 Words

LM Thapar School of Management, Thapar University, Patiala

Introduction: The purpose of the report is to conduct an ethical analysis of the scenario using Kantian and Utilitarian ethical theories. There are two persons directly involved in the scenario i.e. Raj, who heads purchasing department, in the small company and the supplier who is offering Raj to accept the cricket match tickets, and in turn expects his favor in selection of suppliers order. Indirectly involved are Rajs son Raju, who is a big cricket fan other is Rajs company whom he is working as purchasing head. Ethical analysis of the situation: STEP 1: Establish who are the people involved and what are their interest? Directly: Raj and Suppliers Indirectly: Raju (Son of Raj) and Company Their Interest: 1) Raj: Raj being the purchasing head wants to do his duty honestly and with responsibility. Other interest of Raj is to keep his family happy and for this purpose, he makes attempts. He & His son, Raju being an avid cricket fan wants to watch cricket live from the pavilion or VVIP BOX. 2) Suppliers: Suppliers have the interest of getting orders from Raj, as he is the purchasing head of the company. 3) Raju: Raju is a big cricket fan and he dreams of watching cricket from the pavilion or VVIP box. 4) Company: The interest of the company is to get the fair deal done between the purchasing department and suppliers. STEP 2: For each person identified in step1, identify the key ethical and moral issues. Raj: Standards of decency has been maintained so far as Raj has not accepted the offer of one of the supplier to give him tickets of cricket match to watch live. And thus he has not broken the trust of his company. His actions will benefit his company as his decision (being purchasing head) of finalizing one of the suppliers will not be biased. Supplier: As the suppliers for his interest is ready to bribe the purchasing head for getting the order finalized from him. Standards of decency are not maintained. Furthermore other suppliers interest will be broken. Raju: Raju is a fun loving lad who wishes to watch cricket live and for this purpose he has approaches his Relatives, friends etc. He simply wishes to fulfill his dreams. Company: The laws of the company have not broken yet and standards of decency have been maintained. And such action will benefit the company.

LM Thapar School of Management, Thapar University, Patiala

STEP 3: Describe and contrast the ethical problem from the viewpoint of the actors & people. Raj: If raj tends to accept the offer made by the supplier certainly no longer his decision of selecting a supplier will be unbiased. By doing this he will be accepting the bribe and company policy will be broken. Otherwise accepting this offer he can enjoy watching cricket live with his son, making his Son happy, thus fulfilling his childhood dream. Supplier: If supplier offers the bribe to Raj it will be ethically incorrect on his part. Otherwise not doing so will lessen the chances of supplier getting the order. STEP 4: Evaluate the scenarios question using the tenets of ethical theories: Kantianism Analysis: Categorical imperative 1: It is okay to make use of ones position in the company , and accept the favor from others in lieu of giving advantage , for the sake of own happiness & pleasure If all people start misusing their power and position to favor a person in lieu of gifts, then there will be corruption and bribery will be common. Thus it being morally incorrect cannot be applied. Thus situation becomes unethical, and morally incorrect. Raj should not accept the movie tickets from the suppliers and give hi undue advantage of that. Categorical Imperative 2: This decision of Raj accepting the movie tickets from supplier will misuse the power a position of Raj, being a purchasing head of the company. Thus it is being morally and ethically incorrect to accept the tickets from the Suppliers. Utilitarianism Analysis:
It shows that whether act or options increase (or decrease) the total happiness of the affected parties.

Courses of action: If Raj accepts the tickets from the supplier: Raj would be happy because his son would be happy and his childhood dream will fulfill and the supplier would also be happy because he would get favor among other suppliers. But on the other side Raj would no longer be unbiased in selecting the suppliers, and would be unhappy so far he has never compromised his honesty and responsibility for his own personal interests. Otherwise the total happiness is increased as the interest of Raj, Raju and Supplier is being fulfilled other than putting the companys interest on sake. If Raj do not accepts the tickets from the supplier: Raj will be happy, the interests of the company are given utmost priority and other supplier trust will no longer be broken, moreover no longer he will have to compromise his honesty and responsibility. But the other way Raj and Raju will be unhappy because their interest of watching cricket match from pavilion is not

LM Thapar School of Management, Thapar University, Patiala

fulfilled, also the suppliers interest is not fulfilled who is again unhappy. The total happiness is decreased as happiness is less than the unhappiness. Conclusion: As per the Kantianism theory, we cannot make the rule universal because it is not morally and ethically right to misuse ones power and position s influence to receive the favors from other, and it is correct to do your duty with honesty and responsibility. Thus its better for raj not accept the offer from the supplier, as per Kantianism theory. As per the utilitarianism theory the total unhappiness is increasing when Raj reject the offer from the supplier of getting the two cricket match tickets, Raj will be unhappy because his childhood dream remain unfulfilled, he will be no longer be able to make his son happy for watching cricket match live. His son will be unhappy; he no longer will be in possession of cricket match tickets. Supplier will be unhappy because he no longer will get the favor from Raj. So he should accept the tickets from the supplier in accordance to have the total happiness among his child and the supplier. Bibliography
Fernando, A. (2009). Business Ethics: An Indian Perspective. Pearson Publications. Quinn, M. J. Ethics for the Information age.

LM Thapar School of Management, Thapar University, Patiala