The Business Ethics and Cultures: Identify Ethical Issues (Case Study Sample)

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Business Ethics and Cultures
In business, ethics refer to the moral guidelines which govern business practice. Ethical behaviour in business is not only that which is considered right within the society but also which is within the law. Often, ethical evaluations in business are used to assess business practice (Aswathappa). In fact, behaving ethically in business implies good business practice. Ethical behaviour in business is pertinent to its success and growth (Palmer). With the increasing business competition, more organizations are investing in ethical training since it is an integral component of business. Consequently, the importance of understanding ethical issues in business has increased drastically. Understanding of the various ethical issues faced in a business environment is necessary for running an effective workplace (Palmer). This essay outlines an analysis of several ethical issues in the given case study and offers some recommendations. Besides, different cultures in the case are identified and analysed in the essay.
Ethical Issues
A particular ethical issue that is evident in the case is a lack of diversity in the allocation of employees about their origin and culture. It is evidenced by the small administrative office which was mainly occupied by Germans. Similarly, the production facility which was dominated by Zulus is evidence of the same ethical issue. A critical analysis of this lack of diversity of workers in several departments of the company shows possible cases of favouritism when hiring employees. It shows there are unethical practices within the human resource department since it is not possible to have only applicants from a particular origin or ethnicity meeting the required minimum qualifications. Moreover, the human resource management should ensure that employees in all departments are from diverse origins and cultures to prevent cases of favouritism based on origin. Favouritism poses a serious ethical issue since it compromises fairness in hiring of workers as well as in promotions. It is, therefore, an unethical business practice which impacts the business negatively.
As articulated by Oster, the HSBC Group acknowledges that the world is rich with diverse and interesting cultures and people from whom there is a lot to learn. People from different cultures and origins should be treated with respect and should be given equal opportunities in business organizations. An organization that recruits a diverse workforce shows an ethical response to diversity (Oster). Besides ensuring equal opportunities in training programs and promotions, diversity also enables employees to enjoy a respectful working environment where their contributions are valued. Therefore, diversity optimizes each worker’s contribution, which is an important element in business success. Clearly, lack of diversity in a business organization is an unethical practice which prevents employees from maximizing their potential hence reducing productivity (Oster).
The lack of medical care for the employees suffering from AIDS displays another serious ethical issue in the company. The lack of medical care shows that the company does not address the employees’ wellbeing adequately. Also, the extent to which the company has been affected by the AIDS pandemic is a sign of gross negligence. The company has failed to carry out campaigns against AIDS including prevention and control. A critical analysis of the condition reveals that majority of the skilled employees suffering from AIDS most likely got infected when working in the company. Thus, the company does not create awareness about the spread of the disease within the company, and ways of preventing it. The fact that the company loses some workers who are unable to return to work due to their condition shows the company’s negligence in helping the infected employees cope with the disease while still working. Given the nature of the disease, it is evident that the company does not conduct regular screening of employees’ health status.
The failure by a company to offer a comprehensive medical care to its employees is a breach of its ethical and legal duty. Employees’ medical health is a key element in business success (Yeganeh). If their health status is not observed appropriately, their input decreases leading to a corresponding decrease in output and hence low productivity. It is unethical for a business not to offer medical care and to neglect the employees who are not able to return to work due to their health status.
The case study also presents a serious ethical issue as far as supplier relations are concerned. It is clear that the business practices of the supplier are unethical since they do not deliver goods at the stipulated time. Moves to solve the problem have proved not to be fruitful as the managers of the supplier are reluctant in addressing the issue, and constantly give excuses. Thus, the relationship between the company and the supplier has several ethical issues that need to be addressed. They include including a commitment to agreements, the correctness of the given information and readiness to solve disputes. The unethical behaviour of the supplier poses a serious ethical issue since it affects several other areas including the company’s decision making and delivery to customers.
Moreover, there are ethical issues in employees’ behaviour and other fundamental issues including integrity and trust. It is particularly unethical for the boss to make comments about his stand in the implementation of sustainability policies. The statement that he is not in favour of the activities of the company and that he is not bothered by the sustainability and responsibility blabber shows a lack of integrity and trust. The manager is expected to act in compliance with the company’s objectives towards achieving its set goals (Yeganeh). On the contrary, the manager is not concerned with the objectives and does not cooperate. This is unethical behaviour which displays a lack of integrity and trust.
Recommendations
The company needs to acknowledge the importance of a diversified workforce and its benefits in productivity. In particular, the concerned managers need to realize that in a diversified workforce, the employees learn a lot from each other, allowing them to feel unique and valued. As a result, the employees develop a feeling of job satisfaction, which increases their individual contribution. This, in turn, leads to an enjoyable work environment and professionalism, which are important elements in business growth and progress.
The company should also develop strategies to deal with the AIDS pandemic. These strategies should be tailored to encompass all medical health issues facing the employees. It is the duty of the company to ensure the safety of the workers at the workplace, not only from physical injuries and disasters but also from any diseases likely to be spread from one employee to another. However, these healthcare strategies should put more emphasis on tackling the AIDS pandemic. There is a need for the company to offer training and health education to the employees regarding the HIV/AIDS disease, its prevention and control. The infected employees should not be neglected, but should be shown concern and care.
The other ethical issues regarding integrity and trust issues and the problems with the supplier need to be resolved through critical assessment and decision making. For instance, decisions need to be made on whether it is ethical to continue working with a supplier who is constantly involved in unethical business practices. Besides, there should be regular assessment of managers in the company with particular focus on integrity, trust and compliance with the company’s code of conduct. Most important, the company should develop a clear and comprehensive set of ethical standards to guide its operations.
Cultures
Culture plays a major role in defining the context in which business organizations operate. It shapes their orientation in decision making, choice of strategies and structures (Aswathappa). Although culture has no unanimous definition, it is widely regarded as a subconscious mechanism, acquired behaviour, or learned attitudes. However, according to the Hofstede model, culture is the collective positioning of the mind which is different from one human group to another and can be used to distinguish human groups (Hofstede). It is also defined within the model as the common characteristics which determine how a human group responds to its environment(Hofstede). Regardless of the definition, cultural differences have a great impact in the context of ethical behaviour in internatio...