Tutor: Siti Rohani Md. !"o# I have read and understand Curtin Policies regarding academic integrity. This assignment has been submitted to Turnitin and has a minimum o !"# original material. Business Ethics 300 Semester1, 2014 1 $nt%od!&tion The ob$ective o this essay is to determine ho% should &alvetrens strengthen their system or con'dential re(orting o misconduct as %ell as identiy the roles o board and management (lay in the investigation by using S)T)A)* +Seeing)Tal,ing)Acting)*evie%ing- rame%or,. *eer to the case study. /i,e 0ields has 'led a %histle)blo%er1s la%suit against &alvatrens. charging he %as %rongully terminated because he has re(orted ® 2ilson (ro(osed channel)stu3ng scheme to in4ate sales and generate bonuses. At business (oint o vie%. this la%suit 'led by /i,e 0ield %as a serious accusation against &alvatrens1s mission and values %hich could im(ose severe ris, to &alvatrens1s re(utation. Des(ite /i,e 0ield has inormed the C55 o &alvatrens. but he did not handle it res(onsibly and (assed it to /i,e1s 6oss. Conse7uently. /i,e 0ields %as orcing to acce(t either demotion or transers to another &alvatrens1s subsidiary. The system or uncovering misconduct %as in (lace. ho%ever it made easier or retaliation. This conse7uence on /i,e 0ield raises the concern about &alvatrens1s to( management ca(abilities to handle misconduct events in the %or,(lace. At this (oint. it seemed that the system or uncovering misconduct %as ine8ective. Additionally. the roles o management and board on the oversight %ere still unclear. There are our ethical issues arise rom above issues %hich are %rongully termination o %histle)blo%er '1(. retaliation (ractices ')( as %ell as transgression in the %or,(lace '*(. The ollo%ing table +9.9- sho%s the ,ey main (layers %ho are involved in the ethical issues. Business Ethics 300 Semester1, 2014 2 +a,-e 1.1 Name *oles in &alvatrens Chi( 6ro%nlee C:5 o &alvatrens Chairman o &alvatrens ;arry /art C55 o &alvatrens ® 2ilson Divisional Sales /anager o &alvatrens /i,e 0ields +The Plainti8- Divisional Sales /anager o &alvatrens Terry Sam(les Senior <ice President o &alvatrens /i,e1s 6oss Business Ethics 300 Semester1, 2014 3 Seeing .thi&a- $""!e" The 'rst identi'ed ethical issue %as %rongully termination o a %histle)blo%er. /i,e 0ields. &alvatrens %as %ell)established Consumer Product Com(any associated %ith good re(utation in the industry. Together. the C:5 o &alvatrens %as ta,ing initiates to im(rove its cor(orate moral res(onsibility by learning and listening to its customers and em(loyees (Case Study). Indeed. /i,e 0ields %as being %rongully terminated as he tried to %histle blo% transgression in the %or,(lace. This ethical issue e=em(li'ed the u(graded (rocedures or re(orting misconduct +niti- %ere incom(atible %ith the %ay o &alvatrens claimed to behave +nyaya-. %hich can be best described in term o /atsyanyaya. Accordingly. no matter ho% (ro(er the established organisation might be +Niti-. i a big 'sh is still consume a small 'sh at %ill. then there must be an obvious violation o human $ustice as nyaya (Sen 2012, 266). 2histleblo%ing is the (roblem o dirty hands as the good are uncovering and rectiying misconduct but the bad may involve betrayal o colleagues. stress on amily and more (Grace and Cohen 2013, 21). Dirty hands are situations %here it is necessary to commit a moral %rong in order to do %hat is morally re7uired (De Wijze 2013, 87). ;o%ever. there %ill be a moral residue or dirty hand. /i,e 0ield had dirty his hands to %histle blo% the channel)stu3ng scheme as he %anted to do %hat are morally re7uired Business Ethics 300 Semester1, 2014 4 but the moral residue %as the stress on his children. loss o $ob and emotional (ressure. /i,e 0ield %as doing his duty as an em(loyee and ,no%ing that re(orting misconduct %as a right thing to do. In this sense. the (ers(ective outloo, o /i,e 0ield %as a((lying the golden rule %hich beyond conse7uentialist reasoning +Deontology-. Nevertheless. dirty hands can be vie%ed as a result o the human duality o (ers(ectives %here it is the clash bet%een conse7uentialist and deontologist ethics (!e"ini 201#, 173). :ven i /i,e 0ield tried to achieve greater sum o utilities +Conse7uentialist- by ignoring this illegal scheme. there is still a moral cost %here misconduct %ould be recurring and could hurt all &alvatrens1s sta,eholders. 0or e=am(le. i this misconduct (ractice %as %itnessing by (ublics. there %ill be a severe colla(se o &alvatrens1s re(utation. Secondly. Terry Sam(le orced /i,e 0ield to acce(t either demotion or transer in retaliation or uncovering misconduct. It is clear that Terry Sam(le %as ocusing only on his sel)interest %hich %as ,ee(ing their sales (erormance. Des(ite /i,e 0ield has inormed ;arry /art. but he did not handle it res(onsibly and (assed it to /i,e1s 6oss. The rationalisation o ;arry /art on this misconduct had subse7uently creates a blind s(ot %here Terry Sam(le %as able to retaliate /i,e 0ield or re(orting misconduct. This %ould amounts to moral rec,lessness %hereby ;arry /art ailed to (ay ade7uate attention on the misconduct issue. Thus. behaviour o Terry Sam(le can be understood in term o utilitarianism because he tried to minimise the cost o e=(osing misconduct by (unishing /i,e 0ield. A((arently. Terry Sam(le denied /i,e 0ield1s duty as Business Ethics 300 Semester1, 2014 5 a loyalty em(loyee to re(ort misconduct (ractice. 0or Terry Sam(le. the right thing to do %as de(ending on the conse7uences itsel. 5n the other hands. ;arry /art o%ns the reedom o choice to (ursue his o%n sel) interest by choosing not to ollo% u( the misconduct issues re(orted by /i,e 0ield. It is $usti'able in term o libertarianism> ho%ever acting in a %ay that %ithout considering ma=imisation o %elare as %ell as moral duty could result in adverse conse7uences. To illustrate. ;arry /art ailed to ta,e the res(onsibility on the misconduct issues. causing occurrence o retaliation (ractices. %rongully termination o %histle)blo%er as %ell as la%suit against &alvatrens. ?nli,e /i,e 0ield and Terry Sam(le. ;arry /art %as seeing the ethical issue based on sel)o%nershi(. In vie% o the transgression in %or,(lace. ® 2ilson %as '=ation on meeting sales target and triggering bonuses through channel)stu3ng scheme %ithout considering his colleagues and &alvatrens. :ven though. customers had reused the channel)stu3ng scheme (ro(osed by ® 2ilson but they may lose their aith on &alvatrens1s code o conducts. Similarly. The behaviour o ® 2ilson is $usti'able in terms o utilitarianism as he (erceived greater sum o utilities rom meeting sales target and triggered bonuses rather than saeguarding &alvatrens ethical (osition. :vidently. the unbalanced (ursuit o (ur(ose in Terry Sam(le. ;arry /art and ® 2ilson raised the (rinci(le sym(toms o teleo(athy %hich had result in moral ha@ardous. As the lac, o consistency bet%een the values an organisation (ublicly ado(ts and the values that conveyed in its (ractices %ould (rovide a basis or ethical ris, ($ond%e et a%& 2013, 37). This is %hy &alvatrens Com(any %as involving in a la%suit 'led by its o%n Business Ethics 300 Semester1, 2014 6 em(loyee that raised serious accusation against organisational values and mission. In res(onse. Chi( 6ro%nlee had call or conerence meeting %ith board o directors to solve the la%suit o %rongully termination and misconduct in the %or,(lace. 6y ,no%ing that the accusation %as against telos o &alvatrens. Chi( 6ro%nlee tried to develo( the common goods under this deteriorating situation. /o01a%ing and /ont%a"ting .thi&a- 2e%"1e&ti3e" 2e%"1e& ti3e" Main 2-aye%" 4ti-ita%iani" 0 Deonto-ogy Li,e%ta%iani" 0 5i%t!e .thi&" /hi1 6%own-ee 7a%%y Ma%t +e%%y /aintaining sales (erormance Business Ethics 300 Semester1, 2014 7 Sa01-e +6ene't- Decline in overall sales (erormance Mike 8ie-d Aoyal to &alvatrens Treated *e(orting misconduct as a duty and right thing to do 9%eg Wi-"on /eeting sales target and triggering bonus +6ene'ts- *ights and %rongs o mar,et +0reedom does not al%ays mean airnessBtainted consentB degradation o higher goods- A(art rom these. re(orting o misconduct occur %hen the em(loyee +%histle)blo%er- (erceives dissatisaction on deteriorating situation. (articularly %hen the values o an em(loyee is not com(atible %ith the ,ey values o the organisation (S'iate()*ary%s(a 2013, +1). This understanding o loyalty allo%s recogni@ing %histleblo%ing as the sym(tom o em(loyee loyalty. Business Ethics 300 Semester1, 2014 8 Re#e%en&e" -i"t De 2i$@e. Ste(hen. 2"9C. DPunishing EDirty ;andsE))Three Fusti'cations.D :thical Theory and /oral Practice 9G +H-: !IJ)!JI. doi: htt(:BBd=.doi.orgB9".9""IBs9"GII)"92)JCJG)=. Business Ethics 300 Semester1, 2014 9 htt1:;;"ea%&h.1%o<!e"t.&o0;do&3iew;1400587*87? a&&o!ntid=10*8). &race. Damian and Cohen. Ste(hen. 2"9C. 6usiness :thics Hth :d. /elbourne: 5=ord. Fondle. Douglas. T. D. /aines. /ichelle *ovang 6ur,e. and Peter Koung. 2"9C. D/odern *is, /anagement through the Aens o the :thical 5rgani@ational Culture.D *is, /anagement 9L +9-: C2)HJ. doi: htt(:BBd=.doi.orgB9".9"LIBrm.2"92.99. htt1:;;"ea%&h.1%o<!e"t.&o0;do&3iew;1)7)*8*945? a&&o!ntid=10*8). Sen. Amartya. 2"92. DThe *each o Social Choice Theory.D Social Choice and 2elare CJ +2)C-: 2LJ)2I2. doi: htt(:BBd=.doi.orgB9".9""IBs""CLL)"99)"G9C)I. htt1:;;"ea%&h.1%o<!e"t.&o0;do&3iew;10)*0**969? a&&o!ntid=10*8). Business Ethics 300 Semester1, 2014 10 S%iate,)6aryls,a. Ilona. 2"9C. D2histleblo%ing as a Sym(tom o :m(loyee Aoyalty ) Polish Pers(ective.D International Fournal o 6usiness and Social Science H +9L-: HJ)LI. htt(:BBsearch.(ro7uest.comBdocvie%B9HI92C!"GHMaccountidN9"C!2. Kemini. /oran. 2"9H. DCon4ictual /oralities. :thical Torture: *evisiting the Problem o DDirty ;andsD.D :thical Theory and /oral Practice 9I +9-: 9GC)9!". doi: htt(:BBd=.doi.orgB9".9""IBs9"GII)"9C)JH2J)". htt1:;;"ea%&h.1%o<!e"t.&o0;do&3iew;149*981599? a&&o!ntid=10*8). Business Ethics 300 Semester1, 2014 11