SM0381: Applied Business Ethics Report - Ethical Dilemma and Evidence

This report presents an analysis of an ethical dilemma faced in the financial planning industry. The student, in the role of a financial services director, describes a situation involving two consultants and a client, highlighting conflicts of interest and ethical considerations. The report is divided into two parts: Part A focuses on the ethical dilemma, while Part B provides a portfolio of evidence. The portfolio includes an analysis of an ethical leadership debate, summarizing arguments for and against the motion that ethical leadership is impossible in a shareholder-focused economy, along with the student's critical evaluation. Additionally, it encompasses a seminar case study on the Holiday case and a self-reflection on interpersonal and team-working skills. The report employs normative theories to analyze the dilemma, including stakeholder, deontology, and utilitarianism, and applies Kant's maxims to evaluate ethical leadership. The student reflects on the implications of the ethical dilemma and the importance of ethical behavior in the financial services industry.

Running head: APPLIED BUSINESS ETHICS
Applied Business Ethics
Name of the student
Name of the university
Author note

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Table of Contents
Part A: Ethical Dilemma Essay..................................................................................................3
Part B: Portfolio of Evidence Contents......................................................................................7
Appendix A- The Ethical Leadership Debate:.......................................................................7
Summary of the arguments:...............................................................................................7
Description and Critical evaluation of the argument:........................................................8
Appendix B- The Seminar Case...........................................................................................10
Summary of the case:.......................................................................................................10
Reflection:........................................................................................................................11
Ethical Dilemmas Found:.................................................................................................12
Analysis Using Normative Theory:.................................................................................12
References:...............................................................................................................................14
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Part A: Ethical Dilemma Essay
I am working in the financial planning industry as financial services director, where
my role is to recruit, groom, train and providing coaching to the financial consultants. In the
financial sales industry, it is my role to manage the organization in order to ensure the fact
that each of the financial consultant can create cohesive team, in which every member can put
equal contribution towards the success of the organization. However, I have faced some of
the major issues in the way of leading a team of 60 employees as I have to manage
cohesiveness within the team and make balance among the team members. Few months ago, I
have faced an ethical dilemma. Two of the consultants, working under me had come to me in
order to discuss the problem, they faced and asked me to solve the problem. Both of them are
two of the most important consultants of my team, who have showed great ethics and are
highly committed towards accomplishing goals and objectives.
Liyana, one of the consultants had come to me in order to share her unhappiness,
regarding the incident, which was happened in between him and Danial, who is another
senior consultant of my team. Adam, one of the ex-school mates of Danial, who has
contacted him through social media and ask to meet with him in order to gain more
understanding regarding financial products. Both Danial and Adam met, in which Danial had
shared her presentation regarding the set of sales. After the presentation, Danial had taken the
decision to acquire the plan. Danial had taken certain preparation in order to proceed with the
application. However, due to lack of time, Adam had left the deal. In this situation, Danial
had set another appointment with Adam in order to complete the application.
In the second appointment, both of them met for the completion of signing the
application. In this meeting, Adam had come with his fiancée Erna, who is also willing to
learn much about the financial planning. Danial had found it as a great opportunity to kill two
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birds in one stone. Danial hold the ability to manage the deals at a time. In addition, Danial
had also found it as a great opportunity to convince both Adam and his fiancée to purchase
the similar plan. In this meeting, Danial had presented his set of sales again to both of them.
After the presentation, Danial had become able to influence both of them to and thereby
convince them to purchase the financial plan. Adam as well as hisfiancée had signed up the
application during the appointment.
After completion of the process of signing the application, Adam’s fiancée Erna had
said that his colleague Liyana is known to her. Danial had acknowledged the fact that Liyana
works as the junior in the team and they possess a close bonding. Danial had asked Erna
about the relationship in between her and Liyana and she said that Liyana is her cousin.
However, as Erna is not comfortable with Liyana, so she had come to meet with Danial with
her fiancée Adam. Danial was shocked with this event as he thought that it might hamper the
relationship in between her and Liyana. In this situation, Danial had decided to assign Liyana
as Erna’s consultant due to the fact that their relationship as cousin is extremely close. At
thatD time, Erna had already signed the application. However, Danial had suggested Erna to
involve as her consultant and he will not proceed with the same. Still, Erna had showed the
willingness to stick with the same plan with her fiancée Adam and ask Danial to be their
servicing consultant as Liyana is highly aggressive. As Danial and Adam are good friends
from the school, they prefer to take the policy with Denial.
This is a great dilemma, faced by Danial in order to proceed with the application in
accordance with the request of client or he can avoid proceeding with the application. If he
proceeds with Erna;s request and Liyana will find it, then she will get frustrated and it will
affect the relationship in between him and Liyana. This is the case of probability of effect, in
which the course of action of Danial might harm the confidence level in Liyana and generate
intense frustration within her. However, Danial had said to Erna that he can proceed with the
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application for Adam and Erna, but she cannot told Liyana that he is working as the financial
consultant for Erna and Adam. It is the feeling in Danial that he had used his diligence in
order to convince Erna to engage Liyana as her financial consultant. However, it is not wrmg
for him to work as per the interest of clients. Danial had submitted the application and didn’t
shared anything with Liyana regarding this situation. This is the case of magnitude of
consequences, where Liyana and her relationship with Erna was harmed as Danial had
requested Erna to avoid disclosing the matter to Liyana.
After a week, Liyana after trying to connect with Erna in order to book an
appointment, become able to contact with Erna and both of them had met through an
appointment. Here also Erna along with her fiancée Adam met with Liyana. Erna had said
Liyana that they had already signed the application with Adam’s school friend Danial. Liyana
got frustrated with this and said that she had tried to contact with Erna in order to meet with
her and help her to take decision regarding financial portfolio. Liyana had said to Erna that as
both of them are busy in marriage plan, so she was trying a lot to contact with Erna. During
the meeting, Liyana had assessed the application, which Erna and Adam had signed with
Danial and showed her disappointment that her cousin had not signed the application with
her, rather with someone, who is not closed to her. In this situation, Erna had felt remorseful
and said Liyana that she signed up the application with Danial mistakenly. Thus, she is
willing to sign up the application with her cousin, as the relationship between her and Liyana
is stronger than that with Danial. In this situation, Liyana felt that it is her right as she tried to
contact with Erna log before Danial. In addition, Liyana also felt that Danial has taken the
advantage of this situation an avoid informing her about this situation. Thus, it is her right to
handle the financial portfolio of her cousin. Liyana had proceed the application with her
cousin. Here, Erna had requested Liyana to proceed the application for both of them. Liyana
agreed with the request and said Erna that she will inform Adam regarding this matter. This is
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the condition of proximity, where Liyana felt that the activity done by Liyana is absolutely
unethical and in the way of signing the financial portfolio for Erna and Adam, Danial is
behaving in such a manner, which is absolutely unprofessional.
After the meeting, Liyana had contacted with Danial and challenged him regarding
the matter. Danial had said that due to his client’s interest, he avoided informing her
regarding this matter. This is the condition of concentration of effect, where course of action
by Danial has harmed the confidence level in Liyana and affected her relationship with Erna.
Danial had also said that he also did it as per the client’s request and thereby protect the
relationship in between her and Erna. Danial had said the fact that he had already submitted
the application and cannot stop it now as he had presented his set of sales for two times. This
is that situation in the case, where temporal immediacy was happened. Here the time in
between the action of Danial and response in Liyana was arrived.
In this situation, both Liyana and Danial had come to me and requested me to mitigate
this issue as both of them feel that they have done nothing wrong. After listening the entire
incident from both the parties, I have encountered dilemma in order to take decision about the
outcome of this situation. It is the feeling in Danial that he should acquire this dealing as both
Erna and Adam had requested him to sign the application. On the other hand, Liyana feels
that it is her right to help her cousin in the financial portfolio as the relationship in between
her and Erna is closer than Danial. In addition, Liyana also felt she has the right over the
business as her cousin had insisted to get the application. Liyana also mentioned the fact that
Dania must be truthful in the situation and inform her about the application. This is the case
of social dimension, in which I have become unable to decide whether Liyana or Danial are
true in their own course of action.
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In the context of financial service industry, it is important to follow all the rules
andregulations and people must avoid misusing their position. It is important to deliver
commitment to the client effectively (Shaw, 2016). It is the role of financial service
consultant to meet the need of client and offer them with financial solution as per their
priorities. As per the perception of Pearson (2017) it is important to consider their
affordability while offering financial solution to them. Being the financial service consultant,
I have to maintain confidentiality of information and avoid disclosing it with any
organization.
The people, working in the sales industry have to deal with numerous people and have
to work in multiple business settings (Crane et al. 2019). Thus, a person working in this field
has to encounter challenging and tricky situation. Thus, it is important for him or her to be
calm and behave in ethical manner, which is the key of accomplishing sales target. They face
encounter dilemma regarding the moral principle (Trevino & Nelson, 2016). However, he has
to convince the customers buy financial planning and portfolio.
Part B: Portfolio of Evidence Contents
Appendix A- The Ethical Leadership Debate:
Summary of the arguments:
Both Mike and Jan has argued against the motion. Mike argues that, if people holding
the top position in the organization exhibit sensible, ethical as well as empathetic behaviour,
all such good qualities of the heads of the corporation will surely reflect in their prudent
decisions as well as the behaviour of the entire corporation. Again, according to the argument
of Jan, being a CEO as well as founder of the company Clean Solutions Inc., she has always
encouraged of her company to grow as a more skilled employee and gain self-respect
simultaneously, gainful employment, and also help disadvantaged employees. Both Mei-Hua
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as well as Deshi argued in favor of the motion. According to them, it is irrelevant to include
the topic of business ethics in the Curriculum designed by business schools, when there is no
traces of the implication of business ethics in the stakeholder-focused economy where the
interests of the employees are always neglected in the course of achieving a high profit.
Description and Critical evaluation of the argument:
Reflecting on the views of Mike critically, I can state that, Mike’s arguments
indicated to the simple logic associated with a conservative family (Shapiro &Stefkovich,
2016).). In a conservative family all the rules as well as regulations are implemented by the
older members. Generally, the younger members of a family tend to follow the rules as well
as regulations introduced by the elders. Eventually, in a conservative family the younger
generation tend to imitate the behaviour considered ethical as well as ideal by the older
members of the family. In a nutshell, all the rules as well as regulation followed by an entire
family, the behaviour, attitude, life style followed by an entire family is predetermined by the
heads of the family (Demirtas & Akdogan, 2015).). In other words. The behaviour exhibited
by a family is the reflection of the behaviour of the heads of that family. Mike has
implemented the same logic to explain the ethical behaviour in a shareholder focused
economy. Following the tradition of decision making in a conservative family, I believe that
Mike is right to say, whether an organization will exhibit ethical behaviour or not is set or
predetermined by the ‘behaviour at the top’, or the behaviour exhibited by the leaders (Yukl,
et al., 2013). I strongly agree with the explanation provided by Mike that the ethical
behaviour exhibited by any corporation is actually the pattern or type of behaviour set by the
heads as well as leaders possessing top position in the organization. I can conclude from the
Explanation provided by Mike that, in case, people holding the top position in the
organization exhibit sensible, ethical as well as empathetic behaviour, all such good qualities
of the heads of the corporation will surely reflect in their prudent decisions as well as the
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behaviour of the entire corporation. I can align my own opinion with that of Mike and hence,
I strongly oppose the debate motion-“ethical leadership is impossible in a shareholder
focused economy”. However I also share the same concern that Mike has for his daughter. it
is true that the leaders of most of the organizations talks about corporate codes of ethics and
claims that they follow corporate codes of ethics as well as governance guidelines
(Yidong&Xinxin, 2013). With the promise of providing fresh graduates a work environment
exhibiting ethical governance, they often deviate from ethical governance and exploit
employees, just to satisfy key stakeholders like customers as well as suppliers. This indicates
to the fact that in a stakeholder centred economy, the attitude of the leaders are shaped in a
way that they are less like to exhibit ethical leadership. This establish the fact that, ethical
leadership may be observed rarely in a shareholder focused economy, but not cannot be
considered as an impossible phenomenon (Freeman, 2015).
Reflecting on the views of Jan critically, I can state that, my idea that ethical
leadership is not impossible in a stakeholder-driven economy, is validated by the personal
experiences thatJan shared in her argument against the motion. I find it amazing that, Jan,
who is the CEO as well as founder of the company Clean Solutions Inc , has always
encouraged the workers at her workplace to have a supporting atmosphere where they can
grow as better employees and gain self-respect too. According to me, Jane’s company is a
living example, how governance ethics can be followed in leadership, even in a stakeholder-
cantered economy. My views against the motion-“This Business School believes that ethical
leadership is impossible in a shareholder focused economy”become stronger when I come to
know about the fact that, under the leadership of Jan the potential employees receives
opportunities for gainful employment and the disadvantaged people attached with the
organization receive assistance from Jan during their growth.
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Reflecting on the views of Mei-Hua as well as Deshi critically, I can state that, both of
them have thrown lights on the real life leadership practices in a stakeholder-cantered
business environment (Freeman, 2015). According to them, there is no point of including the
topic of business ethics in the business school curriculum, as they do not have any real life
application. The real life experiences discussed by both of them indicate to the fact that,
leadership is only the matter offering subordinates to put their soul to achieve organizational
goals so that the in order to create a highly profitable as well as successful business.
Magnitude of consequences, realized from the arguments of Mike, Jan, Mei-Hua,
Deshi indicate to the fact that, in a stakeholder-centered economy the victims are the
employees.
As per the analysis of social consequences, the employee exploitation by leaders in
the process of achieving exorbitant profits; are considered as ‘bad’ or ‘unscrupulous’ act.
The probability of effect of the unscrupulous as well as unethical leadership by most
of the heads of contemporary companies, indicate that the employees will be the victim of
such decision.
In this case the temporal immediacy or the length of time between act and
consequences is long as the unethical decision by most of the heads of contemporary
organization will cast upon a severe negative impacts on the employees in the long run.
Proximity or the social distance between the decision maker and those affected by the
act is huge. As the decision makers are the leaders or CEOs, and the people who are affected
the most are employees of lower ranks.
Concentrations of effect or the number of people affected by the action of Borris are
huge- employees of lower ranks.
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Appendix B- The Seminar Case
Summary of the case:
Borris is the senior accountant of a medium sized agency dedicated for advertising, in
the country of Germany. Borris’s girlfriend would meet him for the last time current year,
after which she will be leaving for her higher studies, moreover the family of his girlfriend
was expecting him to see. For all this purpose he had apllied for leave. Eventually, as a
strategy to win the rivalry with the companies operating in the same market a product launch
ceremony was preponed by Borrris’s company, abruptly. Due to his sense of responsibility,
conscience, dutifulness for the company Borris cancelled his leave, conveyed his girlfriend
over phone that he would not be able to meet her and her family as well. His girlfriend
became upset, still he stuck to his decision and helped the company in the emergency
situation by taking responsibilities of the accounts department.
Reflection:
I believe that Borris has not done justice to his girlfriend and her family. It is true that
Borris has gone through a situation of ethical dilemma. On the one side he has to take
responsibilities associated with the advertising organization, especially during the situation of
emergency like abrupt preponing of the product launch. Again, on the other side Borris’s
girlfriend would meet him once for the current year, after which she will be leaving for her
higher studies, moreover the family of his girlfriend was expecting him to see, for the last
time in the current year. Missing of this opportunity to know his girlfriend as well as her
family, would delay his union with his girlfriend and her family by a whole year. In this case
remaining committed to the professional life only, jeopardize his relationship with his
girlfriend. It may make his girlfriend that she as well as her family are less valued by Borris.
She could raise question regarding the rights and responsibilities of Borris towards his
personal life and could misunderstand Borris too. Again, I do not think that the action of
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Borris is not justified, even if it is observed from the view point of his colleagues. As
colleagues may raise questions why Borris did not request the higher authority to put the
responsibility to some other person, why Borris cancelled his leaves even when he was not
forced. Thus the extreme dedication of Borris fuelled misunderstanding in personal relations
(Mette& Scribner, 2014).
Ethical Dilemmas Found:
As per my opinion, there are several ethical dilemma, one of which is very significant.
The most notable ethical dilemma is related to the ability of Borries, account executive, to
balance his professional as well as personal life equally.However, the ethical complication in
BOrris’s life was should he prioritize his love life or profession.
Prior to cancel the leave, Borris should consider the fact that, when his colleagues will
require leave the management may take his dedication as an example for not approving
leaves or exploit them.whether to think about impact of the decision on colleagues or to
remain dedicated to his duties, is the other ethical dilemma (Anderson, M., & Anderson,
2018).
Analysis Using Normative Theory:
Analysing this situation using Normative theory, it can be stated that, Borries is
dedicated to the medium sized advertising organization during several years. When Borris
was conveyed that the product launch of their company has been preponed as the rival
company will be launching a similar product, in the same week, in which his organization has
planned to launch their own product of similar kind; he showed agility to cancel his leaves.
Borris has done this due to his sense of responsibility dedication to the organization he work
as a senior accountant. However there are two different worlds of which Borris is a
significant part. They are- professional world as well as personal world. Borris needs to be
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