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Ethical Dilemma at the Workplace

The case that I am going to discuss in this essay is related to the tourism and hospitality industry. I worked part-time as an Assistant Maintenance Manager in a hotel wherein I witnessed theft directed at the customers by one of the hotel employees. One of the room service staff stole some cash from one of the guest’s rooms. This event would have gone unnoticed if the colleague of the employee had not reported the incident to me. When I asked the employee involved in the case, he initially denied it but later admitted that the guest was not on the hotel premises and their purse was kept on the bed. So, he took the opportunity to steal part of the cash that was inside the purse and kept it back as it is. The guest was still not back in the hotel and I faced the ethical dilemma of whether to report the incident to the Maintenance Manager, Hotel Manager and the guest or just silently keep the money back where it came from. The room service staff urged me to keep it quiet as he feared getting fired from the job. On the other hand, it was a serious ethical issue that needed to be addressed to prevent it from happening again. It was difficult for me to decide, however, I decided to keep it quiet and ordered the employee to put back the money before the guest came back. He put back the money into the purse and the guest remained unaware of the theft that happened. He refused similar incidents in the past and promised not to do it again.

Before the incident, I was still learning the nuances of the job. However, I was happy with the progress that I made in managing the maintenance staff. However, the incident made me aware of the ethical issues that I could face while working in the hotel. Moreover, I also got worried that many similar incidents might also have gone unnoticed. Therefore, I was frustrated at first that such an incident could lead to a bad reputation for the hotel. I was also angry at the room service staff that had stolen the money. He was apparently feeling guilty and afraid for his job and worried for his family whom he had to feed. Thus, his requests made me feel pity for him. Later, I felt motivated to improve the situation at the hotel by instilling an ethical mindset among the staff to prevent such incidents in future.

The thing that was good and worked well was the fact that the other room service staff reported me and I took immediate action before the guests came to know about the theft. However, the bad thing was that such incidents might be happening earlier and would have gone unnoticed. The other room service staff contributed positively to the situation by reporting the incident to me. I also contributed positively by taking immediate action on the issue.

Ethical Training

I think the reason for such an incident to occur was a lack of training of the employees in ethical work practices. Moreover, the lack of ethical code of conduct within the hotel’s policies led to a gap in the development of ethical practices. As a result, there was a lack of effective leadership which could have guided the behaviour of the employees (López Jiménez 2021). As per the ethical theory of utilitarianism, the correct action in any situation is the one that produces the best outcome by taking into account the interests of all the individuals involved (Barrow 2015). Thus, this theory supports the solution that is more beneficial for more people. Based on this theory, it could be stated that my solution was utilitarian in nature since it was beneficial to the majority of the parties involved. The benefit to the hotel was that the guests did not come to know about the theft, which might have hampered the reputation of the brand in the market. Moreover, the benefit to the room service employee was that he did not lose his job. Additionally, the benefit to the guests was that their money was saved, even though they did not know about it. However, an issue in this solution is that it might not mitigate the issue in the long run with employees thinking that they could get away with such theft, if caught. On the other hand, the ethical theory of deontology advocates for absolute rules that must be followed, like the rule to respect people’s privacy (Benlahcene et al. 2018). However, my solution was not in accordance with this theory, wherein I should have reported the incident to the senior management as well as the hotel guests, no matter the consequence to the staff or the reputation of the hotel (Benlahcene et al. 2018). Overall, there is need for improvement to ensure an ethical code of conduct that can mitigate the issue of theft and prevent such ethical dilemmas in future.

The incident provided me with the opportunity to learn about ethical business practices. This situation would have been avoided if the leadership had employed the use of ethical code of practice and had motivated the employees to work ethically. In my opinion, I took the right decision in this situation which prevented the brand image from being ruined and the staff from being fired.

However, I would prefer to do things differently the next time such an incident happens. First of all, I would request the senior manager to implement an organisational code of practice as per the theory of deontology . After the implementation, I would conduct training for the staff to act ethically during work. In addition, I would also ensure that I motivate the staff to stay ethical in their behaviour. Even then if such theft occurs, I will report the incident to the senior management as well as the guests and take strict action against the staff involved. Thus, I think that by following a strict ethical code, the issues will be prevented and the organisation will function ethically.

References

Barrow, R., 2015. Utilitarianism: A contemporary statement. Routledge.

Benlahcene, A., Zainuddin, R.B., Syakiran, N. and Ismail, A.B., 2018. A narrative review of ethics theories: Teleological & deontological Ethics. Journal of Humanities and Social Science (IOSR-JHSS), 23(1), pp.31-32. http://dx.doi.org/10.9790/0837-2307063138

López Jiménez, D., Dittmar, E.C. and Vargas Portillo, J.P., 2021. New directions in corporate social responsibility and ethics: codes of conduct in the digital environment. Journal of Business Ethics, pp.1-11. https://doi.org/10.1007/s10551-021-04753-z

My Attitude to Business Ethics

Before beginning the course, I had a limited understanding of business ethics. In the first log entry, I discussed two ethical theories in the form of deontology and utilitarianism. I defined the two theories by using several sources to establish the ideological basis on which ethical behaviour depends. Moreover, I discussed how these ideologies can lead to ethical behaviour in an organisation. Lastly, I discussed which of the theories can be effective for the evaluation of ethical practices in an organisation. I discussed that both utilitarian and deontological theories have advantages and disadvantages, thus it's important to consider the particular circumstances surrounding each ethical dilemma while applying these frameworks. In some cases, combining the two approaches may be necessary to get to a well-informed and moral decision. To ensure that ethical decisions are made with the best knowledge and viewpoints available, it is also crucial to consult with colleagues, subject matter experts, or ethical advisers. It is also important to be open to criticisms and criticism.

I realised that business ethics are used to promote moral behaviour among employees and win over key stakeholders like clients and investors. Although the quality varies, there are several business ethics programmes available today. It's important to understand that both ethical and unethical workplace behaviour can spur productive employee behaviours that promote organisational success. Unethical workplace behaviour, on the other hand, can provoke unfavourable media attention that promotes organisational failure.  The course also taught me that in order for a corporate organisation to explicitly protect its interests, it must communicate with organisational stakeholders, who include individuals, groups, and organisations of all kinds. Because of this, business organisations and stakeholders are expected to act morally and in their shared interests. (Rossouw 2017).

On the contrary, when a stakeholder or the business chooses to act unethically, corporate connections may become strained and the organisation's reputation may suffer. Due to the heightened risk of reputational harm and injury from unfavourable publicity, businesses are typically motivated to support and promote ethical behaviours as well as to avoid and report unethical activities. Therefore, beyond protecting one's reputation, upholding moral standards at work has advantages. Employee perceptions of a company's ethical behaviour can be advantageous and increase its profitability. Employee productivity, job satisfaction, organisational commitment, trust, and corporate citizenship practises can all be improved by perceived ethical behaviour. Altruism is an illustration of organisational citizenship behaviour  (Ferrell et al. 2019).

Therefore, I believe that in order to maintain its reputation, attract investors, and endure over time, a firm must act ethically. The researchers contend that every facet of business operations must be covered by a thorough ethical plan. This includes operations, human resources, and marketing, among other things. Market experts also advise businesses to incorporate their ethical initiatives into everyday operations (Correia et al. 2020).

Business Ethics

By upholding business ethics, a corporation can attract investors, keep its share price high, and fight takeover attempts. An individual or organisation will consider a number of factors while investing in a specific stock. When analysing a firm, qualitative aspects like a company's reputation and the products it offers are considered in addition to quantitative factors like profit margin and future prospects. Before making the final investment, all of these factors are considered. Therefore, a company that cherishes its integrity reputation will wish to encourage additional corporate investment. Business ethics encompass investor responsibility, therefore it stands to reason that organisations with a solid reputation for ethical business practice also tend to draw greater investment from new investors. Investment is unquestionably necessary for success. Business ethics and conduct outside the purview of the government strengthen the law. (Correia et al. 2020).

Business ethics also promote ethical behaviour among employees. Because of this, nearly all businesses today have corporate ethics programmes to ensure ethical behaviour. Businesses are increasing their investments in corporate ethics in order to avoid the consequences. A survey found that 55% of managers believed corporate ethics would become more important during the following three years. Businesses design formal initiatives that encourage moral workplaces by choosing the most qualified candidates. In addition, modern business executives need to understand the connection between success and moral behaviour. Additionally, I realised how crucial it is for workplace behaviour. Employees can effectively apply ethical reasoning when a corporation communicates to them the importance of business ethics. In firms with strong ethical cultures, 99% of American employees said they were prepared to handle moral dilemmas (Schroeder 2018).

Therefore, I can say that the course helped me realise the importance of business ethics in a contemporary firm. I realised the importance of ethical theories. On one hand, deontological ethics emphasises the inherent morality of specific actions or rules, regardless of their effects. This might mean upholding moral principles at work including honesty and fairness. By establishing a clear set of standards, these principles can help to prevent unethical behaviour This theory can also help in deciding the optimal course of action when faced with an ethical dilemma. On the other hand, utilitarianism focuses on the results. Making decisions at work that benefit the greatest number of individuals while minimising harm to others may fall under this category. For instance, a utilitarian perspective would put employee happiness and job satisfaction first when making decisions on compensation, benefits, and working conditions. When faced with a moral conundrum, a utilitarian approach can help in evaluating the likely results of several options and choosing the one that will have the most positive impact on the well-being of all those affected. In addition, the course modules as well as the personal reflection about business dilemmas also helped me understand how ethics can be applied in the workplace.

References

Correia, T.D.S. and Lucena, W.G.L., 2020. Board of directors and code of business ethics of Brazilian companies. RAUSP Management Journal, 55, pp.263-279. https://doi.org/10.1108/RAUSP-12-2018-0147

Ferrell, O.C., Harrison, D.E., Ferrell, L. and Hair, J.F., 2019. Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95, pp.491-501. https://doi.org/10.1016/j.jbusres.2018.07.039

Rossouw, D., 2017. Business ethics.

Schroeder, K. 2018. 3 Reasons Why Business Ethics Is Important. Available at: https://www.redlands.edu/study/schools-and-centers/business/sbblog/2019/may-2019/3-reasons-why-business-ethics-important/#:~:text=Business%20ethics%20enhances%20the%20law,such%20as%20investors%20and%20consumers

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