Utilitarianism and Business Ethics

Utilitarianism and Business Ethics Deception, greed, and extreme pressure led to the demise of Enron (Beenen and Pinto, 2009). Employees need the ability to disengage ethical issues from these complications of self-interest and provide clear definition; employees need to distinguish between negligible issues typical of work life and critical issues that threaten a companys ethical environment. Ethical issues come with temptations and threats. By understanding threats to personnel interests, alternatives will arise to implement correction. Going along with the crowd can endorse immediate career interests whereas resiting can put status, career and family well-being at risk. By accepting ethical theory, this can act as a guideline for a human resource (HR) manager to identify and handle the issues of self-interest. DeGeorge (2010) defines utilitarianism as an act of moral significance established by its involvement to create the most amount of good for the most number of people. This is based on the ability to foresee the consequences of an action as the choice that succumbs to the greatest benefit, to the majority of people, is the choice that is ethically correct. Beenen and Pinto (2009) identify that corrupt organisations, such as Enron, act unethically by decisions, that are usually, made by a group of senior employees to benefit the organisation. Decisions made by Jeff Skilling (senior manager) to cook the accounting books may have been, in his opinion, as an ethically correct way to benefit the shareholders and stakeholders, by portraying a strong financial image. However, the consequences of this action didnt create the most amount of good for the most amount of people. Instead self-interest influenced unethical behaviour by means of greed and pressure from Wall Street to benefit, not the organisation as a whole but, Jeff Skilling and management, personally, for financial gain. Rational self-interest is good however greed is eventually detrimental (DeGeorge, 2010). While the theory of utilitarianism will always argue to benefit the majority, it can also neglect the minority (DeGeorge, 2010). Sherron Watkins ability to make judgment that Enrons accounting standards were immoral created a rule utilitarianism approach with regards to the law and the concern with fairness; seeking to benefit the majority of people. Therefore, added benefits of rule utilitarianism values justice and includes beneficence at the same time. In the eyes of a HR manager, by taking action the majority of the stakeholders would benefit from a moral organisation adhering to their code of conduct, conducting fairness in all of their business activities. However, an issue with this decision, while sherron was commended for doing the right thing, showed that her actions to neglect the corrupt senior management team (minority) for the stakeholders (majority) for a more ethical workplace started to inflicted damage to the entire business. Cable, News, Network (CNN) (2002) stated that Enron filed for liquidation, people lost their jobs, some committed suicide and many were jobless. Sherron may have been trying to do the right (and difficult) thing but it may not have been the best way to get ahead. Her self-interest was going to become a consequence for the majority and she was unable to predict the future so as to see how her decisions would affect people later on. A HR manager needs to take into consideration that there is no wa y of telling exactly what the costs of our behaviour will be, we just do what we think is right at that specific time (DeGeorge, 2010). After examining DeGeorge (2010) a utilitarian approach to this case study in handling self-interest is too impractical. This is because the practical application of the theory requires the ability to predict the long-term consequences of an action and, to predict those consequences with unfailing accuracy; past experience can, to some extent, guide future experience. However, there is never any guarantee that circumstances will turn out exactly the same (DeGeorge, 2010). This uncertainty can create unexpected results making the utilitarian approach look unethical, as the time the choice was made didnt benefit the majority for the greater good. A HR manager needs to identify that the flaw in utilitarianism theory has no consideration for the minority; however, kantian theory suggests that it doesnt neglect this issue i.e. allowing the minority to suffer for the benefit of the majority. According to DeGeorge (2010) Kants deontology theory is supported by the actions of an individual under consideration. A collective approach to an action suggests it can determine whether an action is moral as it allows one to portray the result of everyone universally contributing to this action. Immanuel Kants theory (DeGeorge, 2010) suggests that an individual must have the freedom to truly act in a moral way. In the case study, some employees understand the company is behaving unethically i.e. dodgy account standards for personal gain. A HR manager could identify that these people have a choice to voice their concern, leave the company or go along with the crowd; however self-interest and the ability to be disciplined may pose a threat to take any action. These people have physiological needs to support family and a moral decision to voice their concerns, in this respect, could pose an issue. By being immoral or turning a blind eye, to the situation, could be the easiest option. Employees do have a choice and the freedom to make a moral decision however self-interest can sometimes turn a moral idea into an immoral decision; without the discipline there is no freedom (Wood, 2008). A deeper analysis of Kants theory suggests that the concept of ethics is not based on desires or circumstances. Moral law is a definite necessity because it has no precursor; there is no but part in the command (DeGeorge, 2010). Sherron Watkins provided an example of how this theory works. Sherron adhered to Enrons ethical code of conduct when analysing the ethical dilemma of accounting irregularities that were present. By identifying this problem to her manager, Ken Lay, she fulfilled her obligations of responsibility. Upholding ones duty is whats considered ethically correct (Wood, 2008). Sherron had found the morality through rationale of her mind as she was not influenced by feelings (preference), but instead she was concerned with fixed statements of duty (I mustà ¢Ã¢â€š ¬Ã‚ ¦). The theory suggests that an individual has no flexibility and no chance to consider ones own position (DeGeorge, 2010). Naturally, people seem to acknowledge that certain rules must have rational exceptions. For instance, with regards to Ken Lay his decision not to fire Sherron Watkins could have jeopardised Andy Fastows position and the companies indicating individuals may need to lie to protect others. So, could a HR manager be reasonable to assume that the same rules can be applied consistently in different circumstances? This makes Kantian ethics rigid because the consequence of an action is not necessarily separated from the action itself (DeGeorge, 2010). Unlike utilitarianism this theory is not based on social utility. It avoids the utilitarian flaw of allowing the minority to suffer for the benefit of the majority, based on free choice and similar to that of John Rawls theory of justice. As described by DeGeorge (2010) the egalitarian, John Rawls, devised a theoretical model that proposed an individual who, covered in a veil of ignorance, would recommend a just society without any understanding of their status in society. The individual would choose a system of justice that sufficiently provided for the lower end of society because the individual could end up being in that lower position so, avoids it by being just and fair. Enron executives paid above market bonuses and salaries, they awarded unethical behaviour and punished good behaviour. In a sense many employees would have tried to do the right thing i.e. perform what was asked of them in their relevant job role. While most of these activities were contributing to the overall unethical behaviour, an employee would reasonably obtain their wage and bonus if they performed in a satisfactory or above expected manner. Self-interest presents an underlying problem here. While the pay system of any organisation should be fair and just, greed and extreme pressure to perform presented self-interest drivers that awarded immoral behaviour. Rawls argued that regimented societies are uncommon due to the fact that what is just and unjust is usually in dispute (Rawls, 2003) Robert Nozicks libertarian theory of ethics is similar to Rawls in that they both believe utilitarianism is a flawed theory due to the importance on the consequences of policies and behaviour (Nozick, 1974 Rawls, 2003). Both indicate that since utilitarianism highlights utility or contentment, within society, it cannot justify an explanation of assertions such as assertions of right which people are free to make upon the actions of others. Consequently, each sets out to develop a political theoretical model which sufficiently suggests what Nozick depicts as, the fundamental Kantian principle that individuals are ends and not merely means (DeGeorge, 2010). Nozicks theory suggests that people have the right to possess entitlements such as remuneration as long as it doesnt worsen the position of anyone else (Nozick, 1974). But if these entitlements were obtained unethically, does this worsen the position of anyone else? In one hand people are morally trying to do the right thing but, in the case of Cassandra, they eventually get punished; she moved to another position being seen as a threat. On the other hand people knew their actions were contributing to immoral behaviour as self-interest (greed and pressure) clouded their decision to do what is right. So what are our rights in situations such as the above? The theory of rights can give a HR manager insight into how individuals are protected in an ethically correct way. According to DeGeorge (2010) rights are proposed by society which is protected and is given the uppermost precedence. Since society endorsees rights they are considered to be ethically correct and suitable. DeGeorge (2010) indicates that an individual must interpret what characteristics of rights are in society, as this can pose implications. The underlying issue in the case study is self-interest. Senior management is responsible to ensure that the integrity of the controls in the environment determines the effectiveness of any control system, including remuneration, leave entitlements and job opportunities. With reference to Enrons code of ethics (2000) dignity and mutual respect, for all employees, is a right that the company has promised to respect and uphold. Clearly, this right was not evident in this organisation. Individuals such as Sherron Watkins, Cassandra and Jeff McMahon were not given the right to be treated in a respectful manner as they were moved into different position disguised as promotions. The relevant rights in a business context to freedom of speech were noted by management, as they gave them a chance to express themselves however, this was quickly extinguished. Control systems (rules) may interfere with ones own self interest to succeed or avoid failure; controls are intended for exactly that purpose. Those who would respond to business pressures by evading controls will devise rationales and tactics to justify such an evasion for tactics of disinformation and deception that they may use (Donnelly, 2003). For rights theory to be practical it must be used in combination with another ethical theory, such as ethical relativism, that will consistently outline the objectives of society. Ethical relativism refers to the principle that there are no commonly valid or required moral standards as any two individuals with differences in culture, who have different ethical views, regarding an action, could simultaneously be correct (DeGeorge, 2010). Beenen and Pinto (2009) indicated that Jeff McMahon knew that Enrons accounting practices were unethical while Andy Fastows belief indicated his way was ethically correct i.e. for the greater good of the company. While both ethical views are different they are also both correct. The underlying similarity here indicates that self-interest for personal gain was the main driver relative to their different ethical opinions. DeGeorge (2010) suggests a clear understanding of this theory must be carefully dissected when compared with cultural relativism; as cultural relativism explains the way people actually behave, and ethical relativism recommends how people ought to behave. A HR manager should acknowledge that differences dont imply that there are no commonly valid moral standards. It teaches us that individuals may not always agree on what the principals are or should be. Relativism is a stronger claim as refutation that there are usually suitable moral standards. It is a theoretical claim about the existence of common moral standards, whether or not people believe in them (DeGeorge, 2010). Therefore, it must be verified or unproven by theoretical influences. In summary, ethical theories need to be examined and measured against one another to tackle the issue of self-interest. No one theory on its own is truly valid, rather a collaboration of all theories should be used in order to give a professional (HR manager) the necessary tools to create strategies and examine the likelihood of unethical behaviour. Enron ignored its ethical code of conduct, self-interest (greed and extreme pressure) influenced management in an unethical manner. For ethics to be adhered to companies need to go beyond the notion of simple legal compliance and adopt values based on organisational culture. Ethical reasoning is not natural its a skill that must be learned and practiced.

JP Morgan Chase Essay

Abstract The purpose of this paper is to discuss the effects of how JP Morgan Chase, the biggest U.S. bank, announced trading losses from the decision make by its Chief Investment Office in the amount of $5.8 billion. It will also discuss actions taken by the Securities and Exchange Commission (SEC) for the misconduct on the part of JP Morgan Chase. Securities and Exchange Commission (SEC) Takes Action I would like to begin by briefly explaining the purpose and mission of the U.S. Securities and Exchange Commission. The SEC was designed to protect investors, maintain, fair, orderly, and efficient markets and to facilitate capital formation. The SEC requires public companies to disclose significant and meaningful financial information to the public in order to guarantee security within the U.S. Federal prosecutors and the securities regulators filed charges against the Chief Investment Office (CIO) consisting of two JP Morgan Chase traders for the massive trade losses totaling $5.8 billion. The employees were charged with conspiracy, wire fraud, falsifying financial records and making false filings with the Securities and Exchange Commission. The Securities and Exchange Commission simultaneously filed a corresponding civil complaint in which the agency signaled it would hold the bank accountable for disclosing inaccurate information to investors about the trading. Elements of Valid Contract – Good Faith and Fair Dealing in Banking Relationships Chapter 7 of The Legal Environment describes the element of what is contained in a valid contract. â€Å"Every contract contains and implied covenant of good faith and fair dealing in its performance that imposes on each party a duty not to do anything that will deprive the other party of the benefits of the agreement. (The Legal Environment, (2013), p.190). I feel it is important for both consumers and bank to ensure they are acting in accordance with good faith and fair dealing. With complete understanding, the banks are ensuring they are doing everything necessary to conduct business with its consumers. As long as banks act in accordance with the terms of a contract or agreement, they should have contented with the covenant of good faith and fair dealing. Intentional and Negligent Tort Actions An intentional tort transpires when an individual intentionally causes damage or injury to another person their property. Some examples are abuse, kidnapping or assault. A negligent tort transpires when an individual causes damage or injure to another without the intent to do so. An example of this would be a car accident or if someone accidentally slips, falls and becomes injured. Interference with Contractual Relations, Participating in Breach of Fiduciary Duty – The tort of interference with contractual relations protects the rights of a legally binding contract and requires the intent to interfere if such agreement has been breached. In the case of JP Morgan Chase I would be able to succeed based on the fact that the act of intentional tort action was carried out. The employees of JP Morgan Chase intentionally falsified financial records and committed the act of fraud. Protection of Online Banking In today’s world of online banking, the technology is simply an amazing necessity. Wells Fargo, for instance has â€Å"implemented firewalls, anti-malware defenses, password encryptions, application security testing and activity monitoring†. This provides a great deal of comfort to the consumer in ensuring their banking information and online account is protected. As an added measure, I feel banks should take that extra measure in continuing to be innovative by implementing new and diverse solutions to protect online banking. References: McKoy, Kevin, (2013) USA Today Bernstein, Harry, (2009). Negligence and Intentional Tort Law Douglas, Danielle, (2012). Banks Layer up on Security to Protect Customers. The Washington Post

Describe the effects of the Blitz on everyday life in Britain Essay

At 4:56pm on 7 September 1940, the air raid sirens wailed as the German Air Force, the Luftwaffe launched a massive raid on London.Over 350 bombers flew across the Channel from airfields in France and dropped 300 tonnes of bombs all over Britain. This caused a lot of problems for the people of Britain. The aim of the Blitz was to break the morale of the British people by destroying their homes, their source of transport and industry. In London the docks were attacked regularly and across Britain the Luftwaffe also tried to hit railway lines and junctions, power stations and ports. People’s daily routines were also ruined. Because of the lack of availability of food, the Government were forced to ration the small amounts of food that was left in the whole of the UK, which left very many people with virtually nothing. Bacon 6oz, cheese 4oz, dried milk 4 pints a week and dried eggs 12 every eight weeks. This is just a small fraction of what the government had to ration. In the morning queue would be everywhere and anyone would stand in one queue just to see what was selling. Hopefully it was food. The government took a number of steps to try and protect people. They ordered a total blackout at night to make sure that none of the bombers could see them. All windows would have to be covered by thick black curtains; street and vehicle lights were shielded of dimmer. It was known as an offence if light was shown, because even the smallest amount of light could tell the Germans were to bomb. Every night an inspector would come and make sure that each house was covered up properly and if it was not, a fine would be issued and the owners would fix the problem. Everyone was also given a gas mask in case the Germans were to drop a gas bomb anywhere. Throughout the whole time, 31% of the population got no sleep at all, 32% got less than 4 hours and a mere 22% got 4-6 hours sleep. This caused a lot of problems for people who were working. Workers were falling asleep at their stations and even more were fired because they kept on arriving late to work. However, the people who did make it to work, never gave up they were determined to carry on. Shopkeepers covered their smashed windows with plywood and put up notices saying ‘business and usual’, to show that nothing had stopped them from running their lives. Transport was still running, even though there was a lot less. Postmen and milkmen marched through the rubble to make their deliveries, Clergymen held regular services in bombed churches, bomb sites were used as pen-air concerts and dances and many theatres, music halls and cinemas stayed open throughout the whole war. Even though people were moving on with their lives, over 1.4 million people had lost their homes and many had their friends killed or badly injured by the Blitz. This drove many people to theft. They would break into bombed factories and steal whatever they thought would have a value for money. They would then sell these items on for as much as they could and use that money to buy food if they could find it. If anyone was caught, the punishment was death. Even though there were two million Anderson shelters produced in the early years of the First World War, many people had no shelters to stay in while the bombs were taking place. Many people moved in with family and friends where as others went to underground stations and stayed in the tunnels all night. They would stop the trains and the escalators from running so that people could sleep down there without any injuries. These tunnels gave the population the encouragement that they needed. Many people got a lot of sleep down there and even more were getting used to the bombs. However, the government were scared that people might not come back up again, because they were too scared, and tried to stop them, but each night up to 60,000 would demand to go down into the tunnels for protection. In the end the government gave up. So the Salvation Army and the Women’s Voluntary Service ran shuttle services of buns and drinks from station to station to keep them alive. Others would stay at home and hide in a Morrison’s shelter that was attached to the dining room table, or even hide under the stairs because they were designed to carry a heavy weight. Day after day, night after night, so many fire services fought to control the many fires that were going on. Not including the regular fire services, there were 60,000 volunteers in the Auxiliary fire service. Many were on duty for two days in a row and had very little chance to get some sleep. Fire fighters were under constant heat and falling buildings, not to mention the falling bombs the surrounded them. They ran out of water quick because the bombs would hit the main pipe lines. There were also not enough fire trucks so people would have to run to the fire and hope to God that there was a water supply nearby. As people were pulling together and relying on themselves more, community sprit had increased so much throughout the whole of the Blitz. People went straight into action as soon as they heard the bombs going off. People helped the ambulances and the fire department. The heavy rescue squad used ropes and chains to clear away the rubble and then doctors and nurses would then run in and pull people out. To sum up, many people’s lives had been ruined. Loss of family and friend, the loss of their homes, but people really did turn things around. The community really did join together to stick through the whole problem.

Child Development Heredity and Environment - 1240 Words

The distinction between nature versus nurture or even environment versus heredity leads to the question of: does the direct environment or the nature surrounding an adolescent directly influence acts of delinquency, later progressing further into more radical crimes such as murder or psychotic manifestation, or is it directly linked to the hereditary traits and genes passed down from that individual adolescent’s biological parents? To answer this question one must first understand the difference between nature, nurture, environment, and heredity. Nurture, broken down further into environment, is defined as various external or environmental factors one is exposed to which can be more specifically broken down into social and physical†¦show more content†¦Maturing further, the understanding of a teenager’s, who is a delinquent, psychological stability, is vital in order to prevent the lapse of sanity and the creation of an individual such as Jeffery Dahmer. But ar e teenagers predetermined to become serial killers? Is it genetic, passed down from mother and father to their offspring or is it the environment they find themselves surrounded by that creates the serial killer of their future? â€Å"Taking a look at Jeffery Dahmer’s childhood you will find that at an early age he was a fun and active child who his father described as ‘very exuberant†¦.’ These are not characteristic of a serial killer who scientists say are born with this gene of aggressiveness. Dahmer had been a normal child until his father received a Ph.D†¦.When Dahmer had moved, his father and mother noticed that he had become shy and anti-social.† (Serial Killers: Nature vs. Nurture ‘How Serial Killers are Born’) This does not depict a boy who was genetically coded to become a serial killer; it seems as if Jeffery Dahmer’s environmental changes influenced his drastic change in behavior. Upon revealing the distinction between the brain activity of a normal human being and a serial killer, it has become evidently clear that the effect of a genetic handicap as well as different understanding of right and wrong. â€Å"†¦.brain scans of more than five hundred people between those who were prone to violence and those who were considered normal. The study foundShow MoreRelatedInfluence of Nature Versus Nurture on Child Development1202 Words   |  5 Pages Nature as well as nurture can affect the child development. There are many factors that determine the development of a child. Many theories that are proposed by psychologist are used to explain the process of child development. Berndt (1992) explained nature as the impact of the genetic inheritance or heredity of a person during development. 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