Case Study Analysis: Management Ethics and Ethical Dilemmas

This report presents a comprehensive analysis of three case studies focusing on management ethics, encompassing Bupa Seaforth, Retail Food Group (RFG), and IOOF Holdings. The analysis identifies key ethical issues within each case, such as understaffing, inappropriate treatment of clients, lack of openness and honesty, underpayment of workers, and manipulation of sales. The report then proposes and justifies strategies and recommendations to address these ethical problems, drawing on ethical theories like justice, beneficence, and the least harm principle. For Bupa Seaforth, recommendations include increasing staffing, staff empowerment, and improved client care. For RFG, the report suggests establishing openness in operations, fair contracts, and a common reward system. The IOOF case highlights issues of insider trading and misrepresentation, emphasizing the need for ethical leadership and transparency in financial services. Overall, the report provides a critical evaluation of ethical dilemmas in management and offers practical solutions for creating more ethical and sustainable business practices.

Running head: Management Ethics 1
Case Study Analysis
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Case Study report 1: Bupa Seaforth
Introduction
The social and economic well being of people in a society is always a function of various
elements. Similarly, an effective organization is one which adequately addresses the immediate
needs of the people who are attached to it. It is a fact worth noting that various challenges arise
in the process of achieving objectives (Berg and Huebner, 2011). It would however be crucial
for an organization and specifically the management team to remain committed to the core goals
and objectives. This report focuses on a case study which details the current occurrences at Bupa
Seaforths organization. The report shall begin with the identification of the key ethical issues
before coming up with strategies and recommendations which would be pivotal in enhancing a
long lasting solution (Blackburn, 2011).
Ethical Issues
BUPA is a care home which mainly handles clients in Sydney. Based on the case study,
one of the core ethical issues which is eminent is lack an extensive structure to handle the
employees. The main problem seems to emanate from the fact that the institution is largely
understaffed. It would be important for the organization to identify the key areas in which more
labor is needed before bringing on board more workers to handle these responsibilities. The case
study equally reveals that the workers seem to execute their duties with very minimal self drive.
There is low motivation among the employees (Boldin, 2008). The institution seeming lacks a
clear vision as the workers handle their duties without necessarily wanting to achieve the best but
to finish the daily routines. This situation may emanate from delayed payments and lack of a
stable reward system at the organization. Despite the fact that the care system is a non-profit

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organization, the workers are not volunteers. They may need to be paid in good time. The case
study hints at the possibility of poor employee management which in turn results in poor
treatment of clients.
The second notable issue according to the case study is the inappropriate treatment of
clients. One of the elderly individuals was bashed by an employee. Although the 35-year old
worker was later charged and dismissed by the organization, the damage he had made both on
the corporate image of BUPA and the victim of his undoing could not be reversed (Brooks,
2016). Furthermore, the old people are left in unhealthy environments for long period of time.
The daughter to one of the clients realized that her father had stayed in his room for a long period
of time without the faeces on the floor being removed. The daughter spends an hour to find a
worker to do the cleaning (Frederic, 2012). This finally happens but is done shoddily.
Additionally, the elderly people at the home have to wait longer to be helped back to their rooms
after feeding. The food in itself is not nutritionally balanced. The situation described above
reveals that a number of ethical codes of conduct have been broken both by the employees and
the management at the care organization. The management has failed to live up to its mandate by
providing the right number of workers to cater for the many needs of clients at the care center.
The workers on the other hand have failed to offer the much needed care to the old clients. The
other ethical code broken in this case is carefulness. It is evident that the employees at BUPA
show very minimal keenness when performing their duties. For instance, one of the workers
simply walks into a client’s room, places drugs on the table without any further instructions and
walks out. Some of the clients are given drugs which belong to others. This indicates
carelessness.

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Recommendations
The ethical theory of justice stands on the position that decision made to salvage a
situation ought to enhance the safety and justice of the individuals involved. It would be
important to note that clients at the organization have not been treated with the justice that they
deserve. The amounts paid are high hence the clients deserve the right standards in return.
Consequently, there is need to come up with effective strategies to ensure that each of the
stakeholders involved in this case are satisfied (Jadranka, 2015). The stakeholders in this case
may not only be the elderly clients but the workers as well. The organization therefore needs to
develop an environment which does not only uphold the motivation levels of the workers but one
that is safe for the clients as well. The strategy in this case involves increasing the number of
workers to cater for the overwhelming needs of the old people. Based on the case study, the
clients wait for long hours before being served because the number of workers is far much less in
comparison to the number of elderly people in need of care at the institution. The management
may therefore need to consider bringing on board more employees in a bid to minimize this gap
and enhance the quality of services offered to the clients.
The ethical theory of beneficence tends to guide decision making based on what is right
and good. This theory upholds the need to do good as a way of solving an ethical dilemma. The
situation at BUPA simply requires a lot of ‘good’ done by the management to the workers as this
would eventually trickle down to the clients as well. One of the good approaches in this case
would be staff empowerment through benchmarking, training, exposure exhibition as well as
timely remuneration guided by a stable reward structure. If care home manages to get a good
team of committed workers in their right numbers, a number of ethical problems experienced at
the organization are likely to fade away (Jones, 2010). The clients will not only be served in time

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but also professionally. They are therefore able to get a care that is synonymous to the amount
they pay for these services (Keddy, 2017). As a motivation strategy, the management also need
to provide the necessary facilities which give the workers an opportunity to effectively deliver on
their mandate. As a long term strategy, the solution to the issues at BUPA mainly lies on
enhancing commitment and motivation among the staff.

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Case Study 2: RFG
Ethical Issues
In a world where corporate management and franchising has become the backbone of
economic development in most developed and developing countries, it is sad to come across case
studies such as the one involving RFG. Each of the partners attached to the group is complaining.
The case study reveals a number of ethical issues which shall be outlined in this report.
To begin with, ethical standards in business call for openness and honesty exhibited not
only by the leaders but also the employees at the organization. Each of the individuals involved
in the business ought to be guided by specific rules and formal standards. The case study reveals
that the group works with employment contracts which are not formal. The author calls them
‘sham’ hence indicating a clear lack of openness in the transactions between the parent company
and the franchises (Kissane, 2017). Additionally, underpayment of workers can be pinpointed as
another ethical issue in the company’s dealings with its stakeholders. Overseas workers are
specifically mentioned in this case as the victims of underpayment. This reveals discrimination
and the failure of the organization to establish a fair ground for all the individuals attached to the
holdings.
The other ethical issue which can be noted from the case study is the tendency of some of
the franchisees to manipulate sales in a bid to avoid the high royalties which are charged by RFG
on each of the transactions. Despite the fact that RFG is constantly putting in place strategies to
minimize such fraudulent occurrences, it would be important to note that there is a strain in the
relationship between RFG and the franchisees (Koschmann, 2012). The rules by the parent
organization are confining. Most of the franchises are operating in debts because they are unable

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to make profits due to the numerous challenges like high labor costs and poor quality of products
distributed to the stores. The franchisees face difficulties when trying to sell their business in
order to escape the unhealthy environment. This has led to some of these individuals losing
homes and even families breaking as a result of the associated challenges. RFG on the other hand
continues to make profits at the expense of the franchisees’ profit lines. The group has
renegotiated the agreements implying that it currently operates on agreements which are different
from the initially set procedures (Levinas, 2009). It also gains profits by buying back the stores at
incredibly lower prices. The franchisees have no option since they are desperate to get rid of the
unprofitable ventures. The case study in a nut shell reveals RFG as a selfish entity which is only
keen on making profit at the expense of the stakeholders involved. The continued manipulation
of original agreements indicates lack of openness and dishonesty which are the key ethical issues
evident in the case study (Machan, 2010). Before more harm is meted on unsuspecting
individuals, there is the inevitable need to find a proper way out of this problem.
Recommendation
Based on the least harm theory of ethics, decisions made in a bid to find a solution to an
ethical problem ought to be such that the outcomes are accompanied with the least harm on the
individuals involved. The RFG case study clearly reveals the need for drastic measures which
ought to be take in a bid to save the corporate brand image of the organization while at the same
time reestablishing the franchise businesses which are slowly going into extinction.
To begin with, RFG needs to establish openness in its operations with the various stakeholders.
This involves doing away with the sham contract letters hence making the employment
procedures and formalities not only definite but equally reliable. At the same time, the terms of

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agreement ought to be clear and stable enough. This would prevent occurrences such as
manipulation of outcomes in a bid to benefit a particular party. The theory of least harm which
advocates for sobriety in decision making would be an appropriate source of guidance while
seeking for the solution to the issues outlined above.
The ethical theories based on rights advocates for the need to respect and uphold rights of
individuals when making decisions meant to obtain lasting solutions. It can be derived from the
case study that some of the parties involved have had their rights infringed. There is the issue of
underpayment of workers especially overseas employees (Machan, 2010). This amounts to
discrimination since every individual ought to be entitled equal treatment when it comes to
rewarding their efforts as workers. As a result, one of the strategies at RFG ought to be the
establishment of a common reward system which sees all the workers get equal pay irrespective
of their background or nation of origin.
Deontological theories of ethics call for individuals to stick to their objectives when
making solution finding decisions. Objectiveness is one of the core codes of ethics. The case
study indicates that some franchises tend to manipulate sales in a bid to escape charges. This
indicates deviation from the original objectives with the aim of gaining unfavorable advantage.
The organization has already put in place the right strategies to track and identify the franchisees
who engage in businesses that contradict the original arrangement. It is however a fact worth
noting that the franchisees are engaging in such acts because of the high costs of operation
against relatively low profits. A more efficient strategy would involve a complete overhaul of
procedures by RFG to ensure the well being of the franchises attached to the organization. The
employment contracts need to be formal and definite. At the same time, there ought to be equal
treatment of employee hence no underpayment of employees. The organization also needs to stay

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flexible and supportive to the franchisees. The case study notes that others have been blocked in
a bid to sell their stores. Instead of such aggressive approaches, the management at RFG needs to
come up with efficient approaches which ensure that each party involved benefits from the
venture.

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Case Study 3: IOOF Holdings
Ethical Issues
The eminent issue at IOOF holdings is the aspect of financial dishonesty. Proper
accountability of each financial transaction is necessary for any organization to enhance the
financial well being and also track the flow in the use of funds. The organization lacks a clear
record indicating the manner in which the amounts disbursed for different entities have been
accounted for (Singer, 2010). There are errors and breaches in unit pricing which is a clear
indication of the fact that the parties involved are not being straight forward when it comes to
matters of finances within the organization. The other indicator of financial dishonesty is the
misrepresentation of performance numbers which in turn has negative impacts on vertical
integration. The case study reveals a number of insider activities which only amount to financial
embezzlement in addition to other corrupt activities. It can as well be noted that there are
discrepancies in recording unit prices. Most of these strategies are accomplished as an ‘inside
job’ hence making the organization a successful network but unfortunately through fraudulent
means. The illustrations above indicate a clear lack of integrity at the organization. This is a
major ethical code which is necessary for any organization to be considered ethically upright.
The emails exchanged between the parties further confirm the breaches in unit pricing.
Infringement of individual rights is another ethical issue which can be identified from the
case study. As much as there are fraudulent activities going on inside the organization, those who
try to stand out and point out the rot within the organization end up losing their jobs. Some of the
stakeholders have confirmed the fact that the procedures involving financial transactions at the

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organization are unethical. Those who seem to find the unethical behaviors end up bearing the
brunt. Their rights and freedom of expression are infringed in this case. It can also be
extrapolated that many more individuals within the organization may be uncomfortable with the
proceedings but for fear of losing their jobs choose to suffer in silence (Solomon, 2014). An
individual who had worked with IOOF as a stockbroker even made a confession that the industry
is unethical and corrupt hence revealing the extent of rot within the organization.
Recommendations
The ethical principle of respect for autonomy suggests that individuals ought to be given
an opportunity to make decisions which are autonomous. This implies that the decisions ought to
apply to the lives without necessarily having negative impacts on those that are around them. At
IOOF, the financial decisions are only adding to the inside good of the organization but many
stakeholders are losing large amounts from the financial scandals at the organization. Worse still,
the financial network is so connected that those individuals who are trying to fight the corrupt
activities happening within are hindered through threats and termination of employment (Yunt,
2017). As a solution to the ethical issue, the organization ought to give room for frequent
financial audits without any unnecessary influences from the big dogs within the institution.
Financial audits help in pointing out the specific loopholes within the organization which leads to
embezzlement of funds and corrupt transactions.
The principle of beneficence guides solution finding decisions based on what is right and
what is good. What is going on at IOOF could be good for its growth and financial development
but it is a fact worth noting that the procedures are not right (Levinas, 2009). They are corrupt
and unethical. The decisions aimed at finding solutions in this case therefore need to emphasize

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on what is right. The right thing would be the introduction of open recording and thorough
review of transactions in order to ensure that there is no misrepresentation of facts with the aim
of making illicit profits. Due to the fact that the scandal is mainly an inside activity, there is the
inevitable need to involve external organizations to track down and give comprehensive reports
on the flow of finances at the organization. The government in this cases my need to incorporate
an independent firm to help in monitoring procedures and activities at the organization.
The individuals who are found guilty of corruption activities ought to be brought to book
and new members allowed to run the organization. The success of the organization is short lived
as it mainly emanates from unwanted transactions. This implies that the organization risks
closure if the situation is not brought under control in good time. Closing the company would
work to the disadvantage of most of the employees whose livelihoods are attached to IOOF. To
prevent them from suffering due to the greed of others, the top management needs to be sacked
and replaced with an ethically upright team. Finally, the stakeholders and workers at the
organization need to be empowered and trained on the benefits of integrity and the need to
uphold the right moral standards in organizations. This strategy leads to the establishment of a
team in which all the individuals remain committed to a genuine approach of achieving
organization goals.
As noted by one of the complainants, all the individuals in this network are likely to go
down with the organization if nothing is done. Among the suggested strategies, the most
effective one would be a serious sanction aimed at enhancing behavior change among the
employees ought to be conducted (Levinas, 2009). This involves taking the guilty individuals to
court while ensuring that the management team is entirely made up of individuals who are full of
integrity. The organization is prospering despite the corruption due to the fact that nothing has

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been done to fish out and deal with the culprits. In a nut shell, leadership requires the observation
of the right ethical standards. These include integrity, openness, honesty and objectiveness just to
mention but few. The society remains a healthy place when all the individuals maintain the right
moral standards. Making sober decisions to solve ethical problems play a pivotal role in
enhancing such a society.

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