BUGEN5930 Business Ethics: Applying GVV Framework to a Dilemma

This case study presents an ethical dilemma within a Commonwealth Bank branch where a loan manager proposes unethical practices to increase commissions by charging customers higher interest rates and influencing them to take larger loans. Dan, an intern, grapples with whether to report this misconduct, fearing job loss but recognizing the moral implications. He consults with Mr. Mau, a broker who shares his concerns. Inspired by the 'Giving Voice to Values' concept, Dan and Mr. Mau confront the manager, highlighting the ethical issues. The manager, impressed by their integrity, promises corrective action, ensuring their job security. The case study emphasizes the importance of ethical leadership and speaking up against unethical practices in the workplace, aligning with the principles of the Giving Voice to Values framework.

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Running head: ETHICAL DILEMA SCENARIO AT WORKPOKLACE
Ethical Dilemma Scenario at Workplace
Student’s Name
Institution

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ETHICAL DILEMMA SCENARIO AT WORKPLACE
Common wealth bank is one of the leading bank in selling mortgages to its
customers. The reason for its good performance can be associated with the fare prices it
charges for each mortgage. Compared to other banks, it can be rated as the best as far as
mortgages services are concerned. However, this good performance has even motivated
the administration to other ways to improve their services further. In connection to this, in
one of the meeting the bank decided to give commissions to the staffs based on the
number they successful sales they facilitated each month. With time, this strategy has
proved to work since the sale has improved from 20% to 35%. The staffs also seems to
enjoy this deal therefore putting more effort to secure a good number of sales each
month.
Recently, a certain situation occurred in the bank. The Bank Loan Manager called
some of the bank’s brokers in a meeting. He promised them that he would give them
some large amounts of commission if they met some targets. He also urged the brokers to
try and influence the customer to take large amounts of loan as this would also be
followed huge commissions. The question at hand was where this large amount of
commission come from. According to the managers opinion is that they would get them
by charging the customers some high interest rate for the loans they acquired. The
manager did not see anything wrong with this provided they would all benefit from the
deal. He has also planned to conceal this plan from the general manager because he
perceive he would be against it.
Dan was the Housing Loan Manager’s personal secretary. He was working in the
bank as intern. He was aware of his boss’ plans. According to him, he felt that this was
not right. He lacked the legal ground why the customer would have to incur the added

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ETHICAL DILEMMA SCENARIO AT WORKPLACE
cost and they were not receiving anything in return for the extra cost. In one way this
would affect the whole organization since the customers would tend to evade the risk by
looking for other means of obtaining loans such as going to the savings and credit co-
operative societies. This also would be exposing the customers to high risk of losing their
properties to auctioneers because of the high rates of interest accompanied to this loans.
The idea of encouraging the customers to choose a high amount of loan so as to benefit
from larger amount of commission was still inappropriate. Dan felt that the right thing
would be to allow the customers decide the amount of loan they want without any
influence.
Dan was in a dilemma not knowing what to do. He was only two months in the
organization and this had been his dream place to work at. On one hand, he felt that if he
continued to keep quiet, he was betraying his inner values. On the other hand if he
decided to go ahead and report to the managers, he would lose his job which was the
worst thing he would imagine. Mr. Mau was also one of the banks brokers but he seemed
to have a different stand with the other brokers. Dan had noticed this in the meeting when
the manager was sharing his scheme. Mr. Mau seemed to be objecting the whole idea of
oppressing the customers but his comments were ignored.
Dan’s idea of sharing with the manager seems viable. But he has decided to first
share the idea with Mr. Mau. He had a meeting with him and shared his mind. Mr. Mau’s
first response was negative since despite him been against the idea, he feared they would
lose their job. He had decided to just conduct his business in a fair way but to let his
colleagues continue with their activity. Dan had learnt on giving voice to one values in an
ethics’ class. This was a new view to ethics that stated that once you know what the right

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ETHICAL DILEMMA SCENARIO AT WORKPLACE
thing to do is, you are supposed to look for the best way to do it so as to get the desired
outcomes. He shared with Mr. Mau about this concept since it was evident that both of
their values were against this action. All they were needed to do was to look for the best
way to communicate the information to the manager so as to persuade him. They did not
have to fear losing their job.
They went ahead and booked an appointment with the manager. In the day of meeting
they shared the whole incident to the manager. The manager was amazed by their
boldness and integrity. He promised them that he would take the relevant actions and
they did not have to worry about their job security.

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ETHICAL DILEMMA SCENARIO AT WORKPLACE
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