Ethical Considerations: ABC Company's Unpaid Overtime Case Study

This case study examines the ethical dilemma faced by ABC Company, where employees routinely work unpaid overtime. The analysis explores the benefits and harms of this practice for various stakeholders, including the company, employees, public, industry, and clients. The paper utilizes ethical frameworks to evaluate the morality of expecting professional workers to exceed their time limits without compensation. It assesses the potential consequences if such practices were universalized, considering contradictions and the violation of employee rights. The study highlights the stakeholders most affected by the company's actions, particularly the employees, and discusses the potential for internal conflicts, legal issues, and impacts on product quality and industry reputation. The study concludes by emphasizing the importance of implementing fair working policies and ethical business practices to ensure employee welfare and long-term sustainability.

Introduction
The case study of the ABC Company estimates that the company can achieve its target if all the
workers work for 8 hours in daily shift. But for the overtime that the employees do have become
unpaid most of the time in the company. It has become almost a culture within the company to not
pay the workers for its overtime. The higher authorities that are involved with the company are
already aware of the fact that the employees are not being paid for their overtime. But the workers
are to be paid for the overtime they are working for. This paper deals with the ethical dilemma that
is involved with the practice for analysing the framework.
IS IT MORAL TO EXPECT PROFESSIONAL WORKERS TO WORK BEYOND THEIR TIME LIMIT?
Framework Company Employees Public Industry Clients
Benefits of
this action?
The ABC
Company is able
to increase its
productivity with
the employees
working
overtime.
The employees
does not get any
benefit from this
non-paid act.
Rather it is a loss
for the
employees
With the
increase in
productivity,
the public gets
more supply of
the product
and excessive
supply of
product can
even lead to
decrease in
price of the
product (Crane
and Matten,
2016).
The industry
gains profit
from the
particular
company as
the company
is providing
more
productivity
that results
to decrease
the cost of
the product.
With the
increase in
working in
working hours
for the
employees,
the clients gets
the maximum
benefit as they
are getting the
product from
the company
in less time
with high
productivity.
Harm
caused by
this action?
There is no harm
for the company,
rather the
company is
making profit
form this fact.
The harm to the
employees for not
getting paid for the
extra time of work
is maximum. The
employees invests
their time in
working for the
company but the
company does not
pay them with their
actual money
(Certo, 2018). As a
result of their
contribution in the
company, the
personal life of the
employees also
gets affected.
The public
group is not
much affected
except the
employees.
The public
group gets
more
availability of
product.
The industry
does not face
any harm
from this as
the company
is not
harmed. As a
result, the
productivity
is also not
harmed.
The clients as
well are not
harmed from
this act as the
organization is
able to provide
more products
in less amount
of time.

Explanation of the above table:
The company of ABC has five stakeholders that are mentioned in the above table.
The stakeholders of the company includes the employees, public, industries, clients and the
company itself (Ferrell and Fraedrich, 2015). The management authorities of the company
knows the fact that their employees are not being paid for their overtime. The company is
facing great profit from this act. The company can produce high amount of product is less
salary paid to the employees. With the employees working overtime, the company is making
a profit at an increasing rate. This gives rise to an ethical dilemma within the company.
From this act, the stakeholders who suffers the most is the employees. The employees
sacrificing their personal life works for the company for the sake of the company. But they
are not paid for their dedication for the company (Charter, 2017). Not paying the employees
give profit to the company, but this gives rise to an ethical dilemma in the company. This
ethical dilemma of not paying the employees may lead to an internal conflict in the
company. If the internal conflicts sustains in the company, the productivity of the company
may decrease because of the unethical process followed by the company. If the employees
unites together to complain against the company, the company will faces legal issues
related to labour law.
The public is in the neutral position for the ethical dilemma that has occurred in the
company (Johnson, 2017). The workers working for extra hours without any extra payment will lead
to deterioration of quality of work and the public will mainly face problem about the product.
Again if the employees of the company work efficiently, the rate of productivity will go
higher which will lead to decrease in price of the item. The public may either be profited or
can face loss from the fact of not paying the employees in the company for being worked
overtime. According to ACS code of ethics, the public should get the benefit of using the
product with changed skills or improved skills. Employees are also included in the public of
the country and through that perspective, the public also face loss by not getting the
payment.
The industry is one of the main stakeholders among all that faces a profit from this
unethical act indirectly. There is no direct effect on the industry of not paying their
employees for the overtime. The industry gets benefitted indirectly. With the employees
working efficiently, there will be high amount of productivity in the company. As a result,
the company can supply more product to that particular industry increasing the sale rate of
that industry. With the increase in productivity with high quality, the company will reach to
a god position in the market.
The clients are the main stakeholders who gets profit from the fact that the employees are
not paid for working overtime (Cohen et al., 2016). The clients gives contract to the
company for dealing with a particular project or work. As the company is not paying their
employees for the overtime working, the price for making the products remains the same to
the clients. The clients enjoys the maximum profit from this. The clients are getting the
product at an increased rate and the price for the product also remains the same. If the

employees works efficiently in the company without the overtime paying, the clients will get
a huge profit on the products of the company.
IS IT MORAL TO EXPECT PROFESSIONAL WORKERS TO WORK BEYOND THEIR TIME LIMIT?
FRAME WORK THE
ORGANIZATION
SELLING
PRODUCTS
AND SERVICES
THE
INDIVIDUAL
STAFF
THE PUBLIC THE CLIENTS INDUSTRY/PROFESSION
Benefits if this
action is
Universalised?
If the act of
not paying the
employees
becomes
universalised,
all the
companies all
over the world
will
implement
this rule. This
will help the
company to
increase its
productivity
with less
amount of
investment.
If the staffs
starts
working
overtime
without
payment, the
companies
will start
taking
advantage of
this action.
The staffs will
have to work
without
overtime
payment if
this action is
universalised.
The staffs will
not be
benefitted if
this action is
made
universalised.
Making this
action
universalised,
the public will
not get such
advantage
from this
(Warren,
2017). The
public are not
able to get
benefit from
this act. There
is indirect
advantage
that the public
can get as with
the rise in
productivity,
the price of
the product
may decrease.
The clients
associated
with the
company will
take the
benefit if the
act of not
paying the
customer
becomes
universal.
The industry will also
get profited if the
action of not paying
the employees
becomes universal.
This will help to
increase the
competition in the
market particularly on
that industry.
Harm if the
action is
universalised?
The
organization
or the
company will
be in a
neutralised
position. The
company will
not face any
profit or any
harm if this
action is
universalised.
The harm will
be caused to
the
employees or
the staffs the
most. This
stakeholder
of the
company will
be affected
the most.
Sacrificing
their
personal
The public will
be affected
indirectly with
the increase
and decrease
of the product
price and the
product
quality
(Gallagher,
2015).
The clients
will be
harmed.
Rather the
company will
make the
maximum
profit if this
act is
universalised
.
The industry will not
be affected is the
action of not paying
for overtime is
universalised.

lives, the
employees
has to work
overtime
without any
extra
payment.
Contradiction If
universalized?
The company
is making its
employees
work overtime
without extra
payment for
the extra
time. The
company
mostly looks
on the profit
rate. But
considering
the welfare of
the
employees,
some of the
company may
take initiative
to make the
payment of
the
employees for
overtime
working.
There are
many other
ways of
making profit
in a company
(World Health
Organization,
2016).
Companies
may
implement
different plans
for making
profit, not by
taking the
money of
their
employees,
which is their
The
employees
should ask
the company
to implement
a working
policy within
the company
so that the
employees
do not have
to work
overtime.
The policy
that is to be
defined in
the
organization
should state
that the
employees
are to do a
defined
amount of
work within
their shifts.
There are
contradiction
that people
can face an
advantage as
well as
disadvantage
with this
action of not
paying
overtime to
the
employees.
The clients
gets only
profit form
this action
that is being
carried by
ABC
Company.
The industry can have
a mixed result from
this action pf not
paying extra money
to the employees for
the overpayment.

right.
Explanation of the table:
From the above table it can be concluded that among all the stakeholders of the company
who are involved, the employees are to one who faces the maximum loss in the company. This
tables states two factors: making the act of not paying the employees of the company as a universal
one, and the harm that each of the stakeholders face making this action universal (Moon, 2015). This
table also states about the contradiction that can arise after implementing the action.
The companies are to implement new way of making profit, not in the way of not paying
their employees for extra time. This may make the company profit in short term basis and can also
decrease the quality of the product. The company may implement strategies by which the
employees have to do some particular amount of work in that allocated shift time.
On implementation of making the employees work overtime and not paying extra wages will
make difficulty for the employees and the staffs the most. They will have to sacrifice their personal
life for the sake of the customer and does not even get paid for that (Gunn and Taylor, 2014). The
employees can suggest the company to implement some policies for the sake of the customers.
The public, the client, and the industry usually will have a mixed result. They can get
advantage as well as disadvantage from the action that is stated to be made universal. If the
employees works efficiently, they will get an advantage of the fact of implementing the action. If the
employees does not work with efficiency, the public, client, and the industry may face danger
regarding the quality of the product that is being delivered. If the quality degrades, the reputation of
the company is also associated with that.
Frame work The
organisation
selling
products and
services
The
individual/staff
The public The clients Industry or
Profession
Used as
means of
end,
Violating
their rights
The
organization
that sells the
services and
the products
will not
considered
the action of
not paying for
overtime a as
violation act.
The individual
or staffs can
complain this
action a
violation to
right as they
are not being
paid for the
overtime they
are investing
on the
company.
If the quality
of the
products
falls, the
public may
file a
violation
against the
act (Garner,
2017).
The clients
will not
consider this
as an act of
violence as
he is getting
profit form
this action.
The industry
may consider
this as a
violation act
for the sake
of the
industry
because if the
quality pf the
product
decreases,
there comes a
question of
reputation of
the industry.
Frame work The
organisation
The
individual/staff
The public The clients Industry or
Profession

selling
products and
services
Violating
rights, seen
as unjust (to
powerless),
action-taker
has more
power?
The scenario
presents of
not paying
the
employees
for making
them work
overtime is a
violation of
act against
the policy of
the
employees
(Miller and
Blackler,
2017). As the
organization
implements
this action,
the
implementer
is the
organization.
Much of the
organizations
do not
support the
fact of being
unethical in
the company.
This action is
considered as
an unethical
action as the
staffs are not
paid for their
work that are
investing in the
company.
Considering
the law of
justice, the
people also
will consider
this as a
violating act.
This act is
considered as
an unjust act.
The client is
among the
one who will
get benefited
from this
action. So the
clients will
not consider
this action as
a violating
the act.
The industry
has a mixed
decision.
They may
consider this
act as a
violation of
act or can be
consider it as
a non-
violence act.
Explanation of the above table:
This table mainly consists of the fact that whether the action that is taken by the company is
unjust and is violating the act of law.
Summary
Frame work Organisatio
n selling
products
and
services
Individual/
staff
public clients Industry/
profession
Ethical
Benefits if
this actions
The
organizatio
n will have
very high
profit.
The
individuals or
the
employees
will face loss
No direct
benefit
as such.
Indirect
benefit
Huge
benefit
from the
action of
not paying
May get
benefit or may
get
disadvantage
from the
This
action is
not
consider
ed to be

from the
action as
they are not
paid for the
work they
are doing.
of having
the
product
at much
lower
price.
the
employee
for their
overtime.
action. an
ethical
one as it
does not
do good
with the
benefits
of the
employe
e.
Harms
caused by
this action
No harm;
gets huge
benefit
Gets harmed
as for the
overtime
they are not
paid which
affects
personal as
well as
professional
life of the
employees.
Public
does not
get
affected
as such.
No harm is
caused;
only
benefit
Mixed result;
sometimes
harmful and
sometimes not
harmful
(Adebamowo
et al., 2014).
Not
ethical as
this is
against
law of
violation.
Benefits if
this action is
Universalise
d?
Huge
benefit if
system is
universalise
d.
Great loss of
salary,
affects
professional
as well as
personal life.
No such
direct
benefit
Gets the
highest
benefit.
Mixed result;
sometimes
benefited,
sometimes
not.
Not
ethical at
all.
Harm if the
action is
universalise
d?
No harm
rather than
only profit.
Personal life
as well
professional
life is
hampered
(Chonko and
Hunt, 2018).
No such
harm.
No harm at
all.
May be
harmed or
may not be
Non
ethical
act.
Contradictio
n If
universalize
d
The
companies
may
implement
policies in
the
company
to support
the needs
of the
workers.
The
employees
may request
to implement
policy in the
company so
that the
staffs and
employees
finishes their
job at the
particular
shift time.
There
will be a
mixed
effect
among
the
public
No
contradicti
on
possible.
The industry
may take
action against
such
companies
who are
implement
this act of
making the
employees
work without
payment.
Highly
non
ethical
Used as
means of
end,
Violating
This is not
considered
as a
violating
The
employees
considered
them as a
Consider
s this as
a
violation
This is not
considered
as a
violated
The industry
may consider
this a violation
act
Highly
non
ethical

their rights act to the
companies
as they can
seek
advantage
from this
action
(Dugan and
Taylor,
2016).
violating act
as they are
directly
affected.
act. act. considering
the quality of
the product.
Violating
rights, seen
as unjust (to
powerless),
action-taker
has more
power?
Company
has more
power and
this is the
action
taker of
this act.
This is
considered
as an unjust
act for the
employees
and staffs.
Consider
ed as an
unethical
act.
Client is
not
decision
maker, but
does not
considered
this as an
unjust.
Considers this
action as a
violating act.
Ethical
Conclusion
From the above tables and discussion, it can be concluded that the practice that ABC
Company is implementing is not ethical at all. The employees are made to work overtime, and is not
paid for the overtime is considered as unethical act against the act of violation. To mitigate this
action, it is recommended to use some policy in the organization so that the company as well as its
staffs gets benefitted from them. It is recommended that the company should implement policy that
will define a fixed amount of work for the employees, which is ti be completed in their particular
shift time. To carry unethical actions is not at all good for a long term company.

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