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Ethics In Business Manage With Authority

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Discuss About The Ethics In Business Manage With Authority And Fairness.




Ethics and ethical principles are essentially moral notions that are imbibed in a particular framework, organizational or otherwise, to ensure acceptable conduct. In light of the same the following paragraphs will seek to elaborate on ethical considerations to be undertaken when functioning as a body corporate in the hospitality industry.

The Ibis chain of hotels in Sydney faced various allegations of fabricated financial statements that are marked with unreported profits which the company has not disclosed. In light of the same as a body corporate the hotel has an ethical obligation to produce true and accurate financial reports during audits in order to adequately observe their duties under principles of corporate governance.

Ethical Frameworks

The utilitarian approach agrees with the profit earning motive of corporations however it ensures that the statements made in any disclosure document is true and accurate as the same is a part of the optimal utilization of resources (the accounting and management personnel) who draft the same. This approach is based on utilization of available resources of a company in such a way that the maximum possible revenue is obtained (Maddux & Maddux, 2010). In other words, the idea ensures the optimum utilization of resources including human resources. Thus if this framework was to be ideally enforced the accounting and management personnel must be utilized in a way that brings out the most accurate image of the company’s finances (DesJardins & McCall, 2005). Thus in such a situation, the Ibis chain of hotels has displayed a lackadaisical propensity to not maintain fair accounts which conspicuously establishes a motive to earn and horde unreported profits.

In such a situation where a company is continually producing fabricated information and fabricated disclosure documents which portray a falsified stand of the company’s financial position the Justice approach can also be applied to the same. The justice approach states that justified ramifications should be delivered in cases where the rights of certain parties to a transaction are infringed by another (Ferrell, Fraedrich & Ferrell, 2014). In such a case the justice approach would also be an appropriate approach for mitigating the problem as making fabricated disclosures violate the rights of the shareholders.

There have additionally been various claims relating to sexual harassment at the workplace at the premises of Ibis Hotels in Sydney. Sexual harassment refers to differential treatment of members of the opposite sex as well as conduct that can be deemed as inappropriate within a particular work environment. In light of the same, such conduct whether differential or inappropriate is a breach of ethical codes of conduct and the same is grossly illegal in most jurisdictions. The idea that a body corporate must act ethically is imbibed in all forms of regulations and codes of practice prescribed for various industries. It would thus be ideal to remove such an ethical omission on part of a body corporate when conducting affairs. Thus an approach has to be identified which would adequately curb the lacking ethical behavior and initiate more ethical conduct within the same.

The virtue approach prescribes a virtuous perspective on the conduction of affairs, whether organizational or otherwise (Firth, 2012). The virtue approach thus uses the best way in which the people involved in a particular scenario can conduct themselves and aims at an ethical and virtuous use of resources (Neeley, 2015). Sexual harassment, fundamentally, is wholly unethical and is not a virtuous approach when dealing with the affairs of a body corporate. It is also illegal in most jurisdictions (Molinsky & Cliffe, 2015).

In managing the ethical issue of sexual harassment at the workplace the rights approach can also be applied for the same. The rights approach states that all individuals functioning within an organizational framework have certain rights which must be adhered to in all circumstances (Neeley, 2015). The rights approach thus states that in case of a workplace every employee has a right to work in situations that free from all forms of discrimination and harassment, sexual or otherwise, and thus the rights approach would adequately mitigate the issue.



To conclude, the rights of parties in a particular business scenario are evaluated by various ethical considerations that prescribe a smooth functioning of corporate affairs. In the same way it may be accepted that in case of any kind of unethical treatment or inappropriate treatment or in case of fabricated financial statements, ethical frameworks that define such situation would aid in reaching an amicable solution for the same.


Reference List

DesJardins J. R. & McCall J. J., 2005, Contemporary Issues in Business Ethics, 5th ed,
Thomson/Wadsworth, Belmont, California.

Ferrell, O. C & Fraedrich, J. & Ferrell L. 2014, Business Ethics: Ethical Decision Making and Cases, 10th ed, South-Western/Cengage Learning, Mason, OH.

Firth L. 2012, Ethics in Business, Independence, Cambridge
Meyer, E. 2015, When culture doesn't translate. Harvard Business Review:
Molinsky, A. and Cliffe, S., 2015, Companies don't go global, people do: an interview with Andy Molinsky. Harvard Business Review.

Maddux, D. & Maddux, R. (2010). Ethics in Business: Manage with Authority and Fairness. Rochester: Axzo Press. (Part 1).

Neeley, T., 2015, Leading Global Teams: Managing SPLIT to Bridge Social Distance. Harvard Business Review.

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