Organizational Ethics Assignment

Added on - 28 May 2020

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Running head: ORGANIZATIONAL ETHICSOrganizational EthicsName of the StudentName of the UniversityAuthor’s Note
1ORGANIZATIONAL ETHICSIntroductionEthical conduct in current business scenario is considered as the most critical.Importance of the consideration of business ethics and ethical conduct in business operationhas risen up the last few decades. The situation has arrived due to the increasingly exposedenvironment the business organisation needs to maintain in the current market scenario(Ferrell & Fraedrich, 2015). This in turn is related to the customer value proposition andbusiness transparency. The companies are now obliged to maintain transparency in theiroperations and needs to address the environmental safety. Ethics in a business helps ingoverning the operations and decisions undertaken following the principles set accordingly inalignment to the social responsibilities. The law addresses some of the ethics, whereas, someof them are followed according to the individual policies set by the business. This essay willidentify ethical issue in Perth Exploration and both identify and recommend solutionfollowing the selected ethical theory.Analysis of Ethical DilemmaPerth Exploration is a mineral exploration company that is currently facing issue withtheir living away from home allowance policy. According to this policy, the geologists hiredby the company are provided some extra allowance for exploring the rural areas under study.This is to compensate the expenditure required for staying away from home. As mentioned,the allowance is debited in their account prior to their departure. However, a misconception iscreated around this allowance and some are considering this allowance as a part of their basicsalary and planning their trip accordingly to save the extra amount (Shawet al, 2016). This iscausing a level of disturbance to the other stakeholders of the company.Primarily, the allowance is provided to the geologists be not a part of the main salarypaid to them. This is only to support their venture to the remote areas. This is causing unrest
2ORGANIZATIONAL ETHICSamong the other employees of the company based on equality as they are being neglectedfrom the additional benefits the geologists are enjoying (Weiss, 2014). Moreover, thecompany is the biggest stakeholder that is directly being affected due to the ethical dilemma.This is causing them some extra amount that can be reduced, which in turn help them inincreasing the profit margin. Moreover, the employees in a business are considered as theintegral part of the business and their focus should be towards well being of the company.The extra amount saved from the trip is ethically and legally a part of the organisation’s fundand should be returned to the company, failure of which is an act of theft according to the(ato.gov.au, 2018).Moreover, according to the Australian Taxation Office (ato.gov.au, 2018), theguideline of living away from home policy of Australia seeks for tax submission on theallowance provided to the employees with the complete detail of the expenditure carried out.Hence, it is necessary for the employer to have detailed record of the expenditure that hasbeen carried out in the field for receiving tax compensation form the Australian government.However, this act of the employees have significant impact on the financial well being of thecompany in the long run as this cause a significant financial damage to the organisation.Ethical TheoryThe normative theories of ethics help the organisations in identifying the appropriateactions that should be conducted, instead of what is being practice (Honneth, 2014). Thetheories that falls under the normative theories of ethics are consequential and non-consequential. The non-consequential theory that will best explain the situation in hand andhas the potential to solve the situation identifies the good in terms of the intrinsic value of theaction, even if the outcomes are undesirable (Crane & Matten, 2016). Use of the non-consequential theory helps determining the best decision that needs to be taken defending the
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