Ethics in Business Operations

This assignment explores key performance measures for businesses operating in the market. It delves into ethical dilemmas surrounding confidential information gathering, highlighting the implications of such practices. The concept of whistle-blowing and its consequences are also analyzed. The report concludes by emphasizing the continued relevance of ethics for contemporary businesses, arguing that ethical adherence provides a competitive edge.

Running head: BUSINESS ETHICS
Business ethics
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the ethical dilemma being faced by Michael Vasquez in
his organization. This report had also discussed about the ethical issue being faced by him with
the help of various ethical theories. Relevancy of ethics in the modern day business had also
been evaluated. In addition, the concept of whistle blowing and its implications had also been
discussed. This report concludes, ethics is still relevant for the contemporary business
organizations. Adhering to the ethical principles will help the organizations to have competitive
edge in the market.

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Table of Contents
Introduction......................................................................................................................................3
Identified ethical issue.....................................................................................................................4
Probable counter actions..................................................................................................................4
Theory of virtue...........................................................................................................................4
Theory of utilitarianism...............................................................................................................5
Behavior of Michael’s boss.............................................................................................................5
Policy of whistle blowing................................................................................................................6
Motivation behind whistle blowing.............................................................................................7
Justification of whistle blowing...................................................................................................7
Relevancy of ethics in business.......................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
Contemporary business organizations operate in intensely competitive market scenario.
Thus, they have to involve various policies in order to gain competitive advantages in the market
(Campbell, Coff and Kryscynski 2012). Involvement of the unethical principles in the business
operation may have short term benefits for the business organizations, but it will have negative
implications in the long term (Bello 2012). This report will discuss about the ethical dilemma
being faced by Michael Vasquez in his organization (Weber 2001). His organization is being
involved in unethical business practices in order gather confidential information of their
competitors. Accordingly, this report will discuss about the ethical issue being faced by him with
the help of various ethical theories. In addition, various aspects of ethics in organization will be
discussed. Relevancy of ethics in the modern day business will also be evaluated.
Identified ethical issue
In the given case study, the ethical issue identified is the way or method of gathering the
confidential information of the competitors. It is being stated in the case that, the boss of Michael
Vasquez have gathered the confidential information by breaching in the intranet of the
competitor organizations and downloaded (Weber 2001). Thus, this act is a criminal offence
under the privacy act, 1988. According to this act, any types of breaching or hacking personal
information for personal gain are illegal (Wright and De Hart 2012). According to the privacy act
of Australia, breaching of privacy or having confidential data or information will attract penalty
and imprisonment. Moreover, the information being gathered is not for public use as it is written
confidential and thus having the access of this information is the serious breach of privacy and
confidentiality and one of the prime examples of unethical business practice (Machanavajjhala

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and Reiter 2012). This is due to the reason that, according to the theory of normative ethics,
anyone should not act similar to what they think others should not do. Thus, in this case, the boss
of Michael Vasquez will not expect or welcome any similar breach of privacy in his organization
or he will not accept if anyone got the access of his confidential data. He will not tolerate that
any other competitor organizations of him are having the access of confidential data of his
organization and gaining business advantages. In that case, he will obviously initiate legal
actions against the offender. Hence, in this case, the competitors can also file legal complaints
against the organization where Michael works. Thus, he should also not get involved in it and
doing it similar to what he have done by being involved in unethical business practices.
However, in this case, the boss of Michael Vaquez have involved in business practices, which he
will not allow to do others in his organization and gave the rise of the unethical business issues.
Probable counter actions
Theory of virtue
Due to the involvement of unethical issues by his boss, Michael Vasquez is facing ethical
dilemma regarding continuation of his job in the organization or not. For him, there are only two
options left. One is to leave the organization and feel free from the ethical dilemmas and the
other option is to follow his boss’ order for the good of his organization (Bright, Winn and
Kanov 2014). To further elaborate these options, various theories of ethics will be used.
According to the theory of virtue, there are good character traits and bad character traits.
According to this theory, a person following ethics should always follow the good character
traits such as courage, justice and self-respect. On the other hand, they should avoid bad
character traits such as vanity, injustice and cowardice (Van Hooft 2014). Thus, in his case, if
Michael Vasquez follows the theory of virtue, then he should go by his own personal character

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traits such as self-respect and courage and leave his job. This is due to the fact that, if he
continues his job in this organization then he cannot value his self-respect. Thus, according to
this theory of ethics, he should leave the job and maintain his good character traits.
Theory of utilitarianism
Another option being available to Michael Vasquez is to follow the order of his boss and
continue with his job. In this case, the theory of utilitarianism can be used. According to this
theory, if the outcome of certain act is positive and favorable then the action of performing the
act should be treated as ethics and vice versa (Sheng 2012). Thus, if the outcome of any action
provides pleasure more than pain, then it will be treated as ethical behavior. Thus, in this case, if
Michael follows the order of his boss, then it will provide pleasure and positivity to the
organization due to the fact that, it will help to gain undue advantages for the organization. Thus,
according to the theory of Utilitarianism, due to the fact that the following the order by Michael
will have benefits for the organization, thus it will be treated as ethical principles and he can
continue with his job (Vaughn 2015).
Behavior of Michael’s boss
The boss of Michael should be considered as unethical due to the reason that he involved
unethical practices to gather confidential information of his competitors (Weber 2001). Thus, as
discussed earlier the manner of gathering the confidential information is unethical according to
the law. According to the theory of Kantian ethics, the principles behind the actions should be
considered rather than the end result (O’Neill 2013). Thus, in this case, though the end result of
having the access to the confidential information will have positive impact on the organization,
but the principles behind the action is unfair. This is due to the fact that, the unethical business

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practices being involved by the boss of Michael Vasquez due to gather confidential information
of their competitors organizations is been considered as negative action according to the theory
of Kantian ethics. Moreover, the outcome that will be gained by him due to the involvement of
the unethical practices will be positive due to the reason it will help the organization to gain
competitive advantages. Thus, the action of the boss of Michael is unethical according to the
theory of Kantian ethics. In addition, according to the theory of duty, it is wrong for any
individual to commit any crime or try to gain any undue advantages if it is against the rule of
duty. Thus in this case, the duty of the boss is not to involve any unethical business practices
even if it involves positive outcome. However, he have involves unethical practices for his gain
and thus, according to this theory also, the behavior of the boss is unethical.
Policy of whistle blowing
Whistle blowing is the policy of individual stakeholder of the corporate organizations
including present and ex employees who will reveal or expose the wrongdoings of their
employer to the media or any regulatory authorities (Miceli, Near and Dworkin 2013). This
policy is one of the main sources for the regulatory bodies to investigate the unethical policies
being involved by the business organizations. Due to whistle blowing, Michael will lose his job
due to the reason that his boss will be affected by his act and thus he will terminate him.
Moreover, if Michael cannot prove his point in the court of law, then he may have to serve
imprisonment and penalty due to false accusations. On the other hand, whistle blowing by
Michael will adversely affect the organization (Robinson, Robertson and Curtis 2012).

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Motivation behind whistle blowing
There are various reasons of motivation for the employees to become whistle blowers.
The following sections will discuss about the various motivational factors of whistle blowing.
 The integrity and justice that the employees hold is one of the key reasons to opt for
whistle blowing. According to this type of employees, they cannot tolerate the injustice
or wrong doing in the organization, which caused blowing.
 These sorts of employees expect their organization will have positive take on the business
scenario, regardless of that they opt for disclosing the wrong doings of the organization.
 Money also acts as motivation for the whistle blowers. In some cases, the award money
for disclosing the wrong doings and compensation from the organization as penalty also
prompts several employees to blow the whistle (Ayagre and Aidoo-Buameh 2014).
Justification of whistle blowing
There is a limit or boundary of the justification of the whistle blowing. Employees
disclosing the wrong doings of their organization due to the reason that they wants to prevent the
unethical practices is justified. However, on the other hand, disclosing confidential information
just for reward or compensation or from any personal grudge will be the breach of privacy and
will not be justified (Ayagre and Aidoo-Buameh 2014). Moreover, disclosing any confidential
information of government regarding the national security is also not justified. Maybe
government will involve unethical practices to gather the information but still it is for all’s good.
Thus, whistle blowing in this case will not be justified.

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Relevancy of ethics in business
 Ethics is relevant in business due to the reason that, it will help the organization to retain
their employees. Practicing of unethical practices will de-motivate the employees to work
in the organization. In this case, due to the involvement of unethical practices, employees
like Michael are thinking of leaving the organization.
 Ethics helps in generating positive word of mouth. Employees will refer more candidates
to work for the organization if the ethical principles can be followed (Crane and Matten
2016). Thus, the organization will more talent pool for selection and enhanced employer
branding. In this case, employees like Michael are de-motivated in doing their job. Thus,
they will not refer anyone to this organization. It will degrade the employer branding.
 Following ethical principles helps in preventing lawsuits and other issues. In this case,
the access to the confidential information will disclose at any time. Thus, it will attract
several legal issues for the organization. In addition, the business potentiality and
reputation will get affected (Rushe 2017).
 Ethics helps in building effective teamwork and working environment in the
organization. Employees will have positive impression and satisfaction in doing their job
in their workplace. In this case, due to the involvement of the unethical practices,
employees like Michael are having low morale. They will not able to work effectively in
this environment, which will impact the organizational productivity (Crane and Matten
2016).
 Ethics will also help the upper level management to communicate their vision to their
employees effectively in the organization. This is due to the reason that, if the leadership
roles can be played ethically, then the employees will be more motivated to follow their

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leaders due to the reason that they will have positive impression about the upper level
management.
Conclusion
Thus, from the above discussion it can be concluded that, adhering to the ethical
principles is one of the key measures for the business organizations to effectively operate in the
market. The ethical issues identified in this case are the manner by which the confidential
information is being gathered. Implications for this unethical practice have also been discussed.
Concept of whistle blowing along with the implications are also been discussed. This report
concludes, ethics is still relevant for the contemporary business organizations. Adhering to the
ethical principles will help the organizations to have competitive edge in the market.

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Reference
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