Business Ethics Report: Ethical Dilemmas in Business Management

This report examines ethical issues encountered in a sales management role at Mark and Spencer. The report details ethical dilemmas arising from company pressures, market changes, and employee demands for compensation. It analyzes the situation using ethical theories such as deontology, utilitarianism, and virtue ethics, evaluating the effectiveness of different approaches. The report highlights the introduction of flexible targets and an incentive plan as solutions, discussing the positive impact on sales and employee satisfaction. The conclusion emphasizes the importance of balancing employee and management needs and the role of ethical decision-making in maintaining a healthy work environment. The report provides insights into how managers can navigate ethical challenges and promote business success, offering a practical case study of ethical considerations in a retail setting. Find past papers and solved assignments on Desklib.

BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
PART 2............................................................................................................................................2
PART C............................................................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business morals are ethics that study different problems which arise at work place. These
are related to behaviour of an individual and whole organisation so that all relevant issues that
are prevailing within boundaries of organisation can be identified (Sharkey and Sharkey, 2012).
With the help of this concept management gets to know the difference between what is right and
what is wrong for a business. Mark and Spencer is a retail outlet which is dealing in fashion
products from a long time (Banks, 2012). It has got many competitors in market which effects
total operations of this company to a great extent. The following report will discuss various
ethical issues encountered by the management in order to keep balance among its various
activities. As there are some judgements which favours a particular party but effects the other in
negative manner, it becomes difficult for the concerned authority to select the best option which
is suitable for all. Below given text will discuss how manager deals with such dilemma and
maintain a healthy environment at work place.
PART 1
While performing duty of sales manager in one of the stores of Mark and Spenser I came
across various moral and ethical issues which takes place frequently at work place. Company
demands maximum sales for which pressure on the working staff gets increased. When the
employees involved in the sales process are already giving their full efforts towards increasing
the profitability of business they find it in ethical that their work is not recognised at work place
and being asked to give labour beyond their capabilities. Due to modification in market trends
change in demand of customers take place (Barnett and Johnson, 2011). This deviates the total
revenue of every year which brings dissatisfaction among the leaders. Workers demand high
wages for their services. This needs approval from the higher authority which is becomes a tough
task when the targets are not met. In this situation, I was the one who faced so much of
disturbance as on one side I was accountable to the top management for non-achievements of
targets and on the other hand I found it difficult to answer the sales team regarding why their
demand for hike in pay scale is not considered by the management. According to norms
employees cannot ask for increase in pay in between the accounting year as there is fix criteria
on the basis of which the hike in salary is made by the authority. On the other hand, if the
employees are asked to work more on seasonal times they demand for extra payment or
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incentives which is also not wrong as every person when gives his extra labour expects to be
paid accordingly by the management (McKee, 2013). In this situation, I found a solution by
suggesting the top management to keep the targets flexible according to the seasonal demands
so that the total pressure can be reduced. Also in order to resolve the issue of employees
regarding their salary, an incentive plan was introduced, according to which monitory advantage
of fix amount will be given to those who perform well in a specific period. This will motivate all
to give their best which will have positive effect on sales and will also meet the demand of
monitory needs of working staff. When the solution was given by taking the judgement
regarding change in targets and increase of incentive plan was taken, maximum satisfaction was
achieved by me as it was favoured by both the parties involved. Hence, the decision could be
rated 8 on range of 10.
PART 2
As a manager, I have to take the decisions which is in favour of both management and the
sales team so that working of an organisation does not get effected on a large scale. There are
different ethical theories which can be used in order to analyse the situation:
Deontology – According to this theory I was expected to perform my duty in a manner as
expected from a person at this post. It is necessary that a person follow the obligations as
designed so that the dignity of the authority is maintained (Perfect and Morris, 2011). According
to this theory the person at power keeps his commitment to be impartial towards the fellow
members and will perform his duty with consistency so that decisions are taken which are
acceptable by all. Although it is a theory which is liked by all there are some drawbacks of same.
According to the given situation it can be evaluated that same condition may occur in future too
and this theory does not provide any logical to the subject matter as the duty of an individual is
not framed in a specific manner. As in this situation the demand of employees was not fair as per
the law therefore I could have even ignored the same but I didn't which was purely my own
choice.
Utilitarianism – It is a theory according to which person at authority must have the ability to
forecast the possible outcomes of the taken decisions (Slade and Prinsloo, 2013).). It is necessary
that before reaching to any judgement its consequences must be evaluated so that it does not lead
to any loss in future. According to the situation I was aware that by making the targets flexible
the total pressure on the working staff will get reduced which will further develop the efficiency
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and ability of employees to perform the task. It will also contribute in developing a good
working culture through which the employees will feel a sense belongingness with the company.
Before reaching to the ultimate decision I evaluated all the associated benefits as well as
drawbacks of decision so that I can convince the management to adopt the same which was also
suitable to them as their need for increased sales were also fulfilled through it. Although this
theory has some drawbacks too, as future of any choice cannot be predicted 100% correct and
there are chances that the results deviates from what was expected. Therefore, this drawback was
removed as before reaching to the final decision I compared all the possible outcomes of each
alternative which helped me in choosing the best possible solution to the given situation
Virtue – It is theory according to which a person should be judged by his character and not by
what he/she does (Nutbrown, 2011). It is because at work place sometimes the staff members
perform some actions without intention which are not actually a result of their intention. In the
given situation although the employees were not opposing the management but were asking for a
higher pay scale or recognition which is a natural need. Hence according to the situation, it is
wrong to overlook the need of employees. Hence as a manager I need to listen to what the
working staff say so that they do not develop a hard feeling against the organisation.
PART C
After discussing the ethical concept, I found that my decision was effective because it
fulfilled all the criteria discussed in the above theories. All the concept of different beliefs were
applicable to the decision hence it gave maximum satisfaction. Also, the given solution created a
feeling of satisfaction among the employees as their issues were resolved and gave the
authorities a chance to get their work done in desired manner. In case if the same situation arises
in future than there are high chances that similar solution would be taken. A change in the
judgement of doing fluctuations in the set targets may not be same in forthcoming time. It is due
to the reason that this way the employees may develop culture of getting their demand fulfilled
by authorities and will not give the efforts to maximise their capacities which is very much
important to experience growth in future. According to the current situation a better solution can
be used which does not effects the capacity of different employees to meet the targets on time.
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CONCLUSION
From above report it can be summarised that in an organisation many ethical issues are
encountered which needs to be tackled accordingly so that the management can continue the
operations effectively. It is very important that a balance between these factors are kept so that
both the parties (employees and leaders) are kept satisfied. Every situation demands an effective
role to be performed by manager as any wrong decision by him may lead to a great loss in the
business. Later in the given report, different theories of ethics are discussed which shows how a
person is expected to perform his duty in a way that it does not affect the profitability of business
and also maintains a good surrounding at work place.
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REFERENCES
Books and Journals
Banks, S., 2012.Ethical issues in youth work. Routledge.
Barnett, J.E. and Johnson, W.B., 2011. Integrating spirituality and religion into psychotherapy:
persistent dilemmas, ethical issues, and a proposed decision-making process. Ethics &
Behavior.21(2). pp.147-164.
McKee, R., 2013. Ethical issues in using social media for health and health care research. Health
Policy.110(2). pp.298-301.
Nutbrown, C., 2011. Naked by the pool? Blurring the image? Ethical issues in the portrayal of
young children in arts-based educational research. Qualitative Inquiry.17(1) pp.3-14.
Perfect, M.M. and Morris, R.J., 2011. Delivering school‐based mental health services by school
psychologists: Education, training, and ethical issues. Psychology in the Schools.48(10).
pp.1049-1063.
Sharkey, A. and Sharkey, N., 2012. Granny and the robots: ethical issues in robot care for the
elderly. Ethics and Information Technology.14(1). pp.27-40.
Slade, S. and Prinsloo, P., 2013. Learning analytics: Ethical issues and dilemmas. American
Behavioural Scientist,57(10). pp.1510-1529.
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