Business Ethics: Universal Standards, Social Impact, and Privatization

This assignment explores the multifaceted realm of business ethics, beginning with a discussion on the feasibility of establishing universal ethical standards versus the influence of cultural differences. It delves into the responsibility of corporations to influence ethical practices in their operating countries, drawing examples from real-world scenarios. The assignment then shifts its focus to the issue of healthcare privatization in Canada, examining its rationale, impacts, and ethical implications using various ethical reasoning methods like utility, rights, and justice. The analysis considers the effects of privatization on families, communities, and the country, highlighting the inequalities and ethical concerns within the Canadian healthcare system and the need for more ethical practices. The paper aims to provide a comprehensive overview of the various factors of ethics and social responsibility and assess their impacts in internal as well as external environments.

BUSINESS ETHICS

Table of Contents
Introduction......................................................................................................................................2
Part A...............................................................................................................................................2
Question 1: Do you feel that it is possible to develop a universal set of ethical standards for
business, or do you believe that cultural differences make universal standards impractical
and/or impossible?.......................................................................................................................2
Question 2: Do corporations have a right and/or a responsibility to influence ethics in the
countries in which they operate? Defend your position..............................................................3
Part B...............................................................................................................................................3
Section 1: Introduction................................................................................................................3
Section 2: Rationale:....................................................................................................................3
Section 3: Impacts (What does this mean to my family?)...........................................................5
Section 4: Impacts (What does this mean to my community?)...................................................5
Section 5: Impacts (What does this mean to my country?).........................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Introduction
Ethics play a vital role in securing the success of corporate or governmental organizations.
Ethical responsibilities of enterprises and corporations have been an essential feature in gaining
popularity and acceptance in the society. Following ethical guidelines is absolutely necessary in
contemporary workplaces in order to run smoothly. The satisfaction of employees and other
stakeholders depend on ethical practices carried out in the workplace (Kolk, 2016). A positive
ambience in the workplace is a primary need for the organization to function properly. Therefore,
following ethical guidelines is one of the crucial factors that need to be considered regarding a
workplace.
Another major element in contemporary business market is social responsibility. New business
studies show the need of contributing to the environment and society as a means to restore
balance and sustainability. The large-scale business processes often lead to adverse effects on the
environment and society, like inequality, pollution, depletion of natural resources and more. The
concept of Social responsibility emphasizes on the need to give back o the society they’ve been
taking from in order to survive the transforming business conditions (Rodriguez-Fernandez,
2016). This paper aims to explore the various factors of ethics and social responsibility and
assess their impacts internal as well as external environments.
Part A
Question 1: Do you feel that it is possible to develop a universal set of ethical
standards for business, or do you believe that cultural differences make universal
standards impractical and/or impossible?
Thomas Donaldson demonstrates and illustrates in ‘Values in Tension: Ethics Away From
Home’, ethical standards are becoming increasingly important with the expansion of business
territories and world market. Cultural relativism and ethical imperialism will more likely secure
the impossibility of accepted business standards all over the world. The differences in cultures,
values and opinions make for a significant amount of knowledge that indicates the irrelevance of
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universal ethical codes. After reading the Donaldson article, it is sure to us that it is impossible to
develop and establish a universal set of accepted business standards and ethics. Each country has
their own set of values or traditions that might not relate with other countries. As per the
humanity’s response to the Universal Declaration of Human rights, we can ensure to follow the
basic human rights and ethics like respect for other people, good citizenship etc., we can build a
universal set of global business ethics.
The cultural difference amongst an organization’s employees can make certain ethical standards
irrelevant or unnecessary (Trevino & Nelson, 2016). On the other hand, being more inclusive
about the cultural differences can not only help in devising a relevant code of ethics but also
comprehend the cultural differences to their own benefits. For example, an issue of sexual
harassment would be dealt differently in different organizations, according to their respective
values and cultures. Hence, it can be said that though it is not possible to devise a universal
ethical standard, it is possible to create a customized ethical code, including essential values from
all the cultures involved.
Question 2: Do corporations have a right and/or a responsibility to influence ethics
in the countries in which they operate? Defend your position.
Yes it is the responsibility of large-scale corporations to influence the ethical values in the
countries that they operate (Robinson, Tewkesbury, Kemp & Williams, 2018).From the
Donaldson article again, we can take the example of the 1950s Motorola Executive who refused
to bribe foreign officials despite of valuable profits guaranteed. From this case, we can recognize
the positive influence it is having on its competitors and the values and ethics that are projected
in this case. It can be considered a basic social responsibility for all corporate organizations to
create an ethical culture that imbibes relevant elements from all the cultural standards. In a
country with high economic and social instability, the basic aim of all corporate organizations is
to return the lost stability and balance (Page, Chen, Gibson & McMillan, 2016). Since corporate
organizations contribute a long way to disrupting economic balance in society and increases the
gap between the rich and the poor; it is necessary that these organizations take up necessary steps
to look after the fact that all members of the society is treated equally and receives equal access
to services and healthcare.
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Part B
Section 1: Introduction
Privatization of hospital services in Canada is a major issue for most Canadians. The Canadian
Medical Association (CMA) has shown support towards privatization in the past despite the
ongoing debate on Private versus Public funding models for healthcare services. The CMA is a
powerful body which can control the job market by modifying remunerations and other job
related model changes for physicians and other healthcare providers. Privatization in the health
sector of Canada has shown signs of corruption, inequality in the system and favoritism. Some of
the clinics in Canada have been found guilty of eighty nine violations of the Canada Health Act.
Section 2: Rationale:
Major rise in privatization of healthcare services has always resulted in inequality in the system
faced by many of its stakeholders (Tynkkynen & Vrangbæk, 2018). There have been many
prominent cases of privatization in health sector that have been found guilty of committing many
violations and have always been active about their patients who have the power and means to act
according to these unethical practices. Discussed below are three ethical reasoning methods
which will help to magnify the cause:
Utility: Privatization has always been beneficial for pharmaceutical companies and for private
hospitals and healthcare services in Canada (Megginson, 2017). The companies and the investors
involved in the process are marketing patients according to their needs and the people are
affluent enough can have the best treatment in less time; whereas, the patients involved have
limited power over their treatment procedures and methods. Patients of various classes face
various issues regarding their treatment. Healthcare is a basic right for any citizen of a country.
This unethical practice of favoritism on patients who have a right for basic healthcare needs to be
addressed and rectified.
Rights: Many clinics and hospitals from Canada have shown signs of various human rights
violations after these bodies were evaluated. Privatization gives very little information to the
patients (Cheraghali, 2017). Hospitals, physicians and other healthcare bodies control their profit
margins and benefits through their patients by providing them very little information about their
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treatment and procedures. Some clinics have also shown unethical practices of prioritizing on
treatment of patients based on their investment in the procedure. The Workers Compensation
Boards (WCB) in Canada is a private insurance company, where workers who are injured at their
work will receive faster treatment.
Justice: The concerns discussed earlier shows signs of extreme inequality and highly unethical
practice that lurks in Canada’s healthcare system. The administrational bodies involved in
privatization exercise unjust control over the market and demands of the patients and concerning
diseases and conditions. These bodies misuse their power for their personal gains instead of
being more rational and available. The affordability that affects after privatization is a huge
factor for most common citizens of Canada (Walter & Lazic-Peric, 2016). They face an
exhausting process where they have limited rights to their information and limited access to
proper treatment which is a basic necessity. Doctors and physicians are highly favored and enjoy
more liberty with respect to their involvement in unjust practices of these organizations. Many of
the doctors also get involved in violations of healthcare services. This hugely affects the
common mass who expects to be treated properly.
Of these three methods of unethical reasoning, the patients are facing injustice in respect to their
treatment. The unbalance in the transparency of these healthcare organizations is affecting the
common citizens in many ways like:
 Receiving improper treatment
 Facing the inability to treat oneself due to their financial disability.
 Receiving very less information about their treatments and procedures.
 Waiting in cue for treatment due to uncontrolled favoritism and prioritizing patients
based on their financial investments.
These issues hugely highlight the need to prevent privatization from controlling the healthcare
systems in Canada and switch to practicing more ethical ways in providing healthcare services.
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Section 3: Impacts (What does this mean to my family?)
Privatization of hospital services in Canada has directly affected many families in many ways.
Many members of different families faced different scenarios every day while attending to their
treatment needs. After privatization of healthcare services in many provinces of Canada like
Ontario, Alberta etc. many families have faced unjust treatment from their healthcare providers.
As a citizen of Ontario, Canada, my family has been struggling with healthcare services for
many years. Due to the increased inflation of healthcare services, my family has been unable to
treat themselves properly and accurately due to their inability to maintain their medical costs.
Many of deaths in the family occurred due to inability to treat them and improve their health
conditions.
However, privatization of hospitals also has a number of benefits on my family. Privatization
means the acquisition of healthcare and services by the private Companies of Canada. In case of
complicated healthcare services, private hospitals can provide care with their advanced abilities
and technologies. Privatization allows for better nursing and attending facilities (Feltenius,
2017). In case of severe healthcare services like major diseases or pregnancy, the skills and
abilities of better qualified doctors can be accessed. Unlike governmental hospitals, private
hospitals are quick and dedicated to every detail of their service.
In private hospitals the patients are not neglected and ignored until the last moment for their
diagnosis and treatment. Rather, they take complete care of the patients’ needs as well as their
families’. Though private hospitals and healthcare are not accessible to most of the citizens of
Canada, like my family, due to the vast economic inequalities, the ones who can afford them
receive the best care. Social inequality also plays a major role in the availability of basic
healthcare market and industry. High pricing of private hospitals benefit the rich families of the
country, whereas poor to middle class families remain inaccessible for these services.
Section 4: Impacts (What does this mean to my community?)
Privatization has resulted in vast inequality among the common citizens of Canada. Financially,
poor communities are getting directly affected with this rise in privatization of health sectors.
Privatization has loads of advantages but only for those who can afford it (Bel & Esteve, 2018).
It is also leading to the unbalance in the economic development of these communities as they can
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hardly keep up to their medical needs and costs related to their health issues. This favoritism
towards privatization system is also hampering the daily operations of public health sectors as
they fight to remove privatization from health sector. Patients are being attracted by high quality
equipments and environments which they can access after paying the required amount for their
treatment. The tribal communities and rural class of people are the most affected by this process
(Daly et al., 2016). The government is being unable to provide these communities with proper
treatment to their diseases as there is no profit outcome from this process.
People have to save and secure a lot of money for their or their family’s medical expenses which
are hard to maintain with the current purchasing amounts of various medical services and
medicines. Basic healthcare requirements are compromised for the common folk and they have
to pay a certain amount in acquiring the treatment or medicine related to their health conditions.
This inability of a patient to properly treat himself/herself is very unethical especially when the
healthcare system of a country is practicing such various unethical approaches in curing and
providing accurate and efficient treatment of various diseases and health conditions. The sole
benefit of the business organizations involved in the healthcare sector is upsetting and needs to
be addressed and challenged. The communities facing these harassments and inequalities are in
dire need of medical assistance hence, their desperation to treat themselves is very logical.
Section 5: Impacts (What does this mean to my country?)
Privatization of hospital and healthcare services has impacted Canada in the following ways:
 Economic inequality: Instead of making treatments and medicines available for all kinds
of patients with different social and economic backgrounds, privatization is preventing
many patients from accessing their medical health needs (Kirkwood & Pollock, 2016).
Patients coming from improved financial backgrounds are getting all the amenities and
receiving top quality smooth healthcare services, while patients belonging to the middle
earning class and below that are having troublesome issues in diagnosing their health
problems and are unable to buy the services or medicines required for their condition.
 Social inequality: This biasness of rich patients to poor patients is extremely disturbing
and it creates a class difference even when it comes to seeking proper medical assistance.
The rich class of Canada is definitely benefitting from all the latest technologies and
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medicines which they can easily acquire given their background (O'Laughlin, 2016).
These people can receive top notch treatment and facilities and hence are greatly
benefited and eventually treated of their disease or condition. While the backward or poor
class of people are suffering from the same disease and yet being unable to pay for their
medical expenses or treatment.
 Economic development: Privatization is leading to unstable economic growth of the
country as a whole. The struggling or working classes of Canada are being greatly
affected by it since the mid 90s. Communities with unstable financial conditions are
spending all their money on their treatments and medicines and hence contributing very
less to the economy (Lebedeva, Akhmetshin, Dzagoyeva, Kobersy & Ikoev, 2016). The
Canadian Medical Association has to stop this diplomatic act of being open to the debate
between privatization and de-privatization of healthcare services and really act on the
needs and necessities of the citizens which will help and improve the medical conditions
all over the country. Unethical practices should be abolished and strict measures should
be taken against those in favor of these unethical practices.
Conclusion
To conclude, ethics and social responsibility play important roles in today’s business
organization. Following ethical guidelines in corporate or governmental workplaces is
mandatory for maintaining harmony and synchronization. Unethical practices in workplaces not
only pollute the work environment but also create obstacles for the organization’s complete
development. The need to be inclusive about various cultural and moral practices have been
identified and explored. Many ethical standards in workplaces fail due to their irrelevance with
the cultural community. However, the paper also identified the social responsibility of corporate
as well as governmental organizations to influence the ethical standards according to the need
and requirements of the various cultures involved in the processes.
This paper has aimed to explore the issue of privatization of hospitals and how it affects the
various stakeholders of the industry. The importance and benefits of privatization of hospitals
have been assessed, followed by the rights of various stakeholders in the process and finally the
justification for the process. The impacts or privatization of hospitals in Canada have been
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examined in details, as relevant with individual families, communities and the country as a
whole. This process helped us in identifying the various ways privatization of hospitals affect the
general people of Canada.
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