Ethics and Governance Report: Ethical Dilemmas and Solutions

This report examines a case study of a company facing ethical issues concerning its HR policies and wage payments. It analyzes the application of ethical theories such as egoism, utilitarianism, and deontology in the context of the company's decision-making process, particularly focusing on the actions of the COO. The report further explores the AAA model and APES 110, evaluating how the company addresses ethical concerns and professional standards. The analysis highlights the importance of ethical leadership and the impact of decisions on employees and the organization's overall ethical standing. The report also discusses the consequences of the company's choices and the potential resolutions, emphasizing the need for transparency and fairness in business practices.

Running head: ETHICS AND GOVERNANCE
ETHICS AND GOVERNANCE
Name of the student
Name of the University
Author Note

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Table of Contents
Introduction......................................................................................................................................3
Part A...........................................................................................................................................3
Part B...........................................................................................................................................6
Part C...........................................................................................................................................8
Conclusion:....................................................................................................................................11
References:....................................................................................................................................12

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Introduction
Each company and organization should follow professional ethics while carrying its
business activities. Ethics are the base of a company which help the organization to make proper
relation with the employees and society. All the companies should have proper ethics rule and
regulation then the employees could have work as per the need and preference of the company.
The report shows about a company which is not able to follow a proper HR policy related to the
payment of wages. The report is divided in to three parts. The first Part shows the different
theory which the company should apply in taking necessary decisions. The second part is about
the AAA model in regards of the COO of the company. The last part of the report shows about
the APES 110 and it shows how the company is meeting the requirements and able to react the
same.
Part A
The theory of Egoism is an ethical philosophy that treats the theory of one’s self interest.
The motivation and the goal of one’s own activity. The theory refers to the people that are
motivated by their own desires, plans or interest which the person cannot be explained otherwise
(Broad 2014). According to the case Mr. Goodrich is the COO of the company. He is a
successful man, who has never failed in his life. The company needs Mr. Goodrich as after the
CEO and the CFO, the COO who run the company. Mr. Goodrich has never missed out any
performance bonus as because he has always delivered the results on time and in an accurate way
which is sign of fine manager. The investors of the company also loved him for this reason. The
accountant manager and the HR manager has come up to him with a bad news that they have
been short on the payment of the wages. The manager gets very angry after hearing this and
decides to sack the HR manager and tell the Account manager to provide some financial reports

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and files on the above and also tells the manager to delete all the files and information related to
this case. The behavior of the manager is very much rude and selfish as the manager think for the
company first. The manager has a lot of ego as because he is successful man he is not ready to
listen to others decision. The manager only thinks about himself and about his position. From the
behavior it is can be concluded that the manager only think or take the decision from which he
will be benefited.
The theory of Utilitarianism is the theory that shows that a company person should be
able to decide after considering everyone (Hayry 2013). This theory propose that the decision
taken by the person is not based on the person’s self-interest but the decision has been taken after
considering everyone. According to this theory an individual is able to keep a track on the impact
of his decision on the everyone and thus the decision taken by the individual will be beneficial
and can safe interest of many people.
According to the case study given in the question, which shows that the COO of the company is
not able to attain this theory of utilitarianism. The decision which has been taken by the COO is
not in the favors of the others, the decision taken is more favored on the self-interest of the
company. According to this decision the company would not have to invest more in the business.
The theory of Utilitarianism could be applied on the condition if the COO take the decision as
per the guidance of the account manager of the company Arnold in regard of payment of wages
to their employee, then the decision would be move forward to the higher authority and the it
would be recommended by them to rectify the errors and solve the problem. Mr. Goodrich is not
able to take the decision in favor of others. The COO has taken the taken the decision on the
basis of self-interest of the company which will be good for the company and for him. This

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indicates that the MR Goodrich the COO of the company has unable to apply the theory of
Utilitarianism.
As per the concern of the account manager, the manager utilize his power to change the HR
policy of the company, then the employee’s get the required amount of salary which they deserve
from the company. The manager has made two plans which can help the company to rectify the
error of the company. The COO of the company does not approve Arnold’s plan, this the reason
why Arnold is not able to apply the theory of utilitarianism in the business practice of the
company. Arnold try to apply the theory of utilitarianism theoretically by providing to types of
plan in front of the COO but failed to apply it practically in the company business.
The theory of deontology explains that the act should be judged during the event. The act
is right or wrong that should be judged, and the act is being checked when it has just started. The
consequences of doing the act is not been checked. In a given example, if a candidate is cheating
in the examination then according to this act cheating is not right that will be checked and
judged. The check will not be done on the basis of that the candidate will be able to get good
marks and pass in the examination due to cheating. This shows that the decision should be
checked and judged independently and not by the result that will able to make on others.
According to the case study is concerned it can be said that Arnold is able to meet the
criteria as this will help him to take a proper decision for the company. As the manager want to
change the decision in order to give proper remuneration to the employee’s. The Account
manager has also made two plans to support his decision and for making the changes in the HR
policy. This plans will also help the company to rectify their mistake. The COO of the company
does not provide the support needed to apply the plans in order to make the changes. This shows

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that Arnold could not apply the theory of Deontology in the ethical matter which has been faced
by the company.
Part B
The company should be able to set proper goals and objectives in regards of its business
activities. The required goals and objectives set by the company which is achievable when the
company will have professional ethics. The company’s ethics help the company to reach the
mission and vision more easily. The company should be guided properly then it will be able to
have a genuine work flow in the company business (Cascio 2015). The American Accounting
Association which help the company to realize the ethical issue and also provide a knowledge in
how it will able to solve the issue. The AAA model as per MR Goodrich is shown below:
1. Information of the case – At first the company should be able to know the
information in regards of the business activities, so that the company can able to face
some kind of ethical issue (Burgess-Jackson 2013). The company have to notice all
the information properly then only the company can know the cause of facing such
kind of problems. The company should analyze all the facts and figures due to which
the company face such kind of problems. The problem in this case is that the
company is unable to pay the required amount of wages to the employee’s which they
deserve.
2. Finding of the Ethical issue – Secondly the company should analyze the data. This
will help the company to realize the problem which the company is facing in the
business (Crane et al 2019). It only solve the current problem after identifying the

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real cause behind it. In the given the real problem which the manager of the company
notice that the employees are not getting the deserved wages from the company as per
rules and regulation. The company has taken some decision to resolve it.
3. Gathering Information of rules and regulation – As the company gets to know the
issue which is been there in the organization. The rules and regulation related to
problem should be familiar by the company (Machan 2015). This is very important
for every company as then it will be able to solve the problem correctly and rectify
the errors. In this case the company at first need to be familiar with all the rules and
regulation then only it can make the changes in the HR policy of the company.
4. Step Required by the problem – As the company is able to get familiar with all the
rules and the regulations then it should inspect the step which is there for the
company to correct the errors, the cause, then the company will be able to have
proper work flow in the business (Weiss 2014). According to the case study it can be
stated that Arnold the account manager has provide to plans by which the company
can change the HR policy and will be able to meet all the requirements to get a proper
employee policy with proper rules and regulations. The plan which Arnold suggest
can move forward to the higher authority for the approval as this plans requires a
policy change for which the company have to invest more for to give the employee’s
a proper wage. In every organization each individual policy change requires an
approval from the high board authority.
5. Steps comparison with the rules - The companies should be able to provide the
rules and the steps selected by the COO. The reason behind this is to know that the
steps selected by the COO is right or wrong. If the company is able to realize that the

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steps and rules are very connected between them then company shall be able to
implied those step in the decision making part and in the company financial
statement. This will also help the company to solve the problems.
6. Consequences of the Company Decision- the Company after getting the required
quantity of steps then the company would be able to dispose of the ethical problems.
The company should also notice that how it will affect the company both internally as
well as externally from the decision the company takes (Thite 2013). The company
also gets to know that how the employee’s and other person related with the
organization will be affected from the taken decision.
7. Final Decision – As the company is able to cover up all the above mentioned points
then the company should be able to the necessary decision that is selected in the
above mentioned steps. It can be assumed that the company can resolve the ethical
issue that the company is facing now (Trevino & Nelson 2016). As per the case study
it can be concluded that the company decide that the management will not change the
Hr. policy. The mistake that is there in the current HR policy for that the company has
decide to delete all the files and data related to it. This is done in such a way that no
one gets to know these mistakes in the HR policy that is related with wages of the
company’s employee.
Part C
APES 110 is for Ethics management, it shows how the company can manage the ethics in
the business activities of the company. This shows various kind of principals which is to be
followed by the professionals of the company. This will result in achieving a proper work flow
for the company. The principles which is been there in APES 110 are shown below:

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1. Confidentiabililty - The employee of the company should be able to keep the
company information confidential they should not share or reveal the information
outside the company. As the company many have some sensitive or important data
that’s why it is expected that the employees of the company will be able to keep the
privacy of the financial statement of the company easily and effectively. According to
the given case study, the COO of the company has told Arnold not to reveal all the
matters in the company that is related to the wages of the employees. The COO also
told that to delete all the files related to this issue. This the duty of the Account
manager now to not to disclose the information outside and keep the privacy of the
information within the company.
2. Professional Due and Care – This explains that the employees of the company
should be able to work professionally as it should able to take each decision after
taking many factors into consideration. The employees should be familiar with the
work ethics then only the employee can able to achieve the individual goals and
objectives comfortably and successfully. As per the given case study the decision
taken by the COO of the company should be professionally based not on self-interest.
3. Integrity- As the person have the proper amount of trust and honesty while carrying
its business activities in the business. This should be taken into consideration while
doing the business. According to the given case study the decision made by the COO
should take the decision honestly then no one will suffer by the decision which the
COO made in regards to the employee wages.
4. Objectivity – the company should have an actual amount of objective in the business.
This will help the company to get a real view of the business, helps them to

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understand the business more deeply (Tomlinson 2014). Every individual should
work as per the needs of the company and not for themselves then only the employees
can help the company in achieving the goals and the objectives set by the companies.
Options for Arnold
1. Complain to Higher Authority – Arnold has the option to complaint to the higher
authority of the company, then the Account manager should all the files and the
details related to the issue to the board of directors or the trustee of the company. This
will help Arnold to get a proper knowledge about the issue then Arnold could have
sort out the matter more easily and effectively.
2. Help from Trade Union – Arnold can take help from the trade union regarding this
matter. Trade union of the company help all types of employee if they face any
problem. The trade union may help Arnold to get a proper HR policy in the company
then all the employees will get a proper amount of remuneration which they deserve
from the company.
3. Notice – Arnold can send a legal notice to the company. This will help the company
to gain a knowledge about the things which are not going right in the company as this
also leads to change the HR policy of the company. The legal notice will also give the
company a pressure then the changes would have been done more quickly.
4. Communication – The Account manager Arnold should have communicate with the
COO of the company one more time, then the COO may have been agreed upon to

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make the changes in the HR policy of the company. This will also help the COO of
the company in understanding the problem which is facing by all the employees.
5. Resignation – The account manager can also give a resignation from the post as the
COO of the company is not ready to make the changes of the HR policy. Then a
proper amount of ethics is being maintained in the business.
Conclusion:
The report conclude about the ethics and governance as this is the most important thing
for any organization. It concludes that the company which is not having a proper and genuine
HR policy. This indicates that the company the company is not managing the business operation
ethically and effectively. The COO of the company is not approving the account manager of the
company Arnold’s proposal of changing the HR policy, as a COO of the company he wants to
keep the HR policy same.

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References:
Broad, C. D. (2014). Five types of ethical theory. Routledge.
Burgess-Jackson, K. (2013). Taking egoism seriously. Ethical theory and moral practice, 16(3),
529-542.
Cascio, W. F. (2015). Managing human resources. McGraw-Hill.
Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press.
Hayry, M. (2013). Liberal utilitarianism and applied ethics. Routledge.
Machan, T. R. (2015). Egoism, Psychological Egoism, and Ethical Egoism. Wiley Encyclopedia
of Management, 1-4.
Thite, M. (2013). Ethics and human resource management and development in a global context:
case study of an Indian multinational. Human Resource Development
International, 16(1), 106-115.
Tomlinson, A. (2014). The supreme leader sails on: Leadership, ethics and governance in
FIFA. Sport in Society, 17(9), 1155-1169.
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.