Political Science: Analysis of Moral Management in Business Practices

This political science essay examines moral management within the business industry, focusing on the case of Elizabeth Holmes and Silicon Valley. It defines moral management and differentiates between immoral, moral, and amoral management styles, concluding that Holmes' actions were unethical. The essay details how unethical practices, driven by factors like greed and the pursuit of profit, led to financial trickery and damaged stakeholder trust. It explores the failure of bureaucracy, lack of profit objectives, and absence of incentives for improvement within the company. The analysis highlights the crucial role of ethics in organizational sustainability and the detrimental impact of unethical leadership. The essay concludes that money influences individual behavior and decisions, but moral management is essential for ethical and sustainable business practices.

Running Head: POLITICAL SCIENCE 1
Political Science
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POLITICAL SCIENCE 2
Political Science
The business industry is characterized by the general level of pessimistic behavior or
optimism among individuals in the industry. The institution of money is one of the main factors
that have a significant impact on the business industry as it influences the way financial
managers and individuals in the occupation relate, make decisions and run their businesses. The
institution of money in the business industry has led to some form of inequality as well. This
paper is a discussion of the type of moral management that is characterized by theorems founder
and CEO Elizabeth Holmes.
Moral management is the situation of ethical excellence as well as the implementation
and practice of the principle of moral maximization. There are different types of moral
management states. These are immoral, moral and amoral management. The type of moral
management that Elizabeth Holmes demonstrated in the management of the company was
unethical management. The issues of Silicon Valley’s unethical management originated from the
various unethical practices that involved the leaders of the company (Edelman, 2019). This was
mainly observed in Elizabeth Holmes who according to the case investigations was the key
beneficiary of the money that was made in the firm (Winship, 2020). During this unethical
practice, she was involved in persuading the stakeholders to get involved into the marketing and
business while at the same time keeping that as a secret. This was meant to cover up his illegal
practices.
The issue of unethical business practice by the company’s subordinates was due to the
fact that many other employees and workers were involved in the stealing after they were
persuaded by Elizabeth Holmes (Pratkanis, 2020). Since she had made the stakeholders believe
her in the scandal, they also convinced the lower ones to hide the case. On the various

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transactions, a senior staff was convinced to keep silent about the same and in turn he would get
some benefits. Definitely there was an issue of unethical marketing practice since the firm that
was supposed to check the finances of the company did not do its work. During their work, the
firm did not look at the illegal transactions that were going on in the company (Wu, 2018). This
meant that Elizabeth Holmes’ behavior continued unnoticed. There were a number of
stakeholders that were involved in the various ethical issues discussed above. Most of these
stakeholders were top ranking officers within the organization.
The different decisions that these stakeholders made influenced the company negatively.
This is because it Silicon Valley was later known for engaging in financial trickery in a bid to
manipulate its earnings deliberately (Guzmán, 2019). Unethical leadership and unethical
marketing practices also negatively affected the organization financially. Unprofessional conduct
in the organization that was conducted under the watch of the different stakeholders negatively
affected the organization as it lost some of its loyal customers. In addition, since the unethical
officials were more focused on self-interest rather than the shareholder’s interest the organization
also broke the trust of these shareholders. The company was a big corporation but declined after
the various unethical issues were brought to light since it lost confidence and trust of most of its
investors.
Unethical issues and unethical business practices in any organization cause sustainability
problems. Unethical leaders have the ability to ruin organizations. Consequently, it is evident
that ethics play a very important role in the sustainability of organizations. One of the issues that
we can see from this case study is the failure in bureaucracy in the administration of the
company (Krauss, 2019). Building on the case study, there are numerous factors that resulted to
bureaucratic failure. One of the causes was absence of profits. Unlike other businesses, the

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Silicon Valley Company in the case study does not have a powerful and straightforward goal of
earning sufficient revenues that cover the costs of sale and make profits as well.
As a result, the lack of profits has resulted to an adverse effect on innovation and
efficiency. Failure to have a strong profit objective implies that there is very little logic and cause
to restrain the costs especially because there is too much wasteful spending. Additionally, based
on the case study, the Silicon Valley Company lacks an incentive to improve the quality and
effectiveness of products and management respectively (Farrell, 2018). The Silicon Valley
Company failed to take risks that would result to enhanced and improved performance.
In conclusion, it can be deducted from the discussion that money leads to a number of
characteristics in individuals such as greed, need and desire that in return have a significant
impact on the decisions that finance employees and managers make. However, moral
management is crucial as it enables individuals in business to remain just, ethical, and honest by
all means while at the same time ensure that they strive to make profits.

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References
Edelman, B. (2019). Revisiting Barlow's Misplaced Optimism. Duke Law & Technology
Review, 18(1), 97-102.
Farrell, H. (2018). Philip K. Dick and the Fake Humans. Amass, 22(3), 24-26.
Guzmán, J. (2019). Documental "The inventor" . Theranos - Elizabeth Holmes (sub. Español).
Retrieved from https://www.youtube.com/watch?v=W2_A93PWPNY&feature=youtu.be
Krauss, R. S. (2019). The Inventor: Out for Blood in Silicon Valley. Science, 363(6433), 1271-
1271.
Pratkanis, A. R. (2020). Why Would Anyone Do or Believe Such a Thing?. Critical thinking in
psychology, 328.
Winship, V. (2020). Private Company Fraud. University of Illinois College of Law Legal Studies
Research Paper, (20-13).
Wu, E. (2018). Biotech Crowdfunding: How the JOBS Act Alone Cannot Save Investors. Colum.
Bus. L. Rev., 1060.