Group Live Project

Ethical Issues in Management

Group Details:

Name Sap ID Roll No

Gaurav Bajaj 80512100185 F005
Meghana Chitibomma 80512100382 F015
Vikrant Shangloo 80512100692 F025
Harish R 80512100710 F035
Abhuday Agrawal 80512100464 F045
Abhinav Singh Rathaur 80512100091 F055

“We, the members of the Group Project, certify that the submitted written report
is the original work of our team and all the analysis and reporting text is entirely our
own. Facts, figures and other relevant information drawn from sources, where
required, is duly acknowledged”.
Introduction
 
The organization we interviewed provides technical services for the telecommunication
industry. They are involved in the operations and maintenance of telecom towers and are an
authorized dealer for spares and services for an established generator company. While
interviewing Mr. Ranga Rao, the Proprietor of this company, he explained that the service
industry relies on brand value. Any ethical violation or disregard will lead to a decrease in
brand value. This can lead to customers having a bad impression of the company which in
turn will lead to a fall in market reputation. He stated that for a small organization, a
customer’s Word of Mouth is the primary source of promotion, and hence it should not be
taken for granted at any cost. By ensuring an ethical environment, the organization promotes
a sense of trust amongst its customers which allows them to approach the organization
without any doubts. The company focussed on giving holistic service to its customers. The
quality of service, providing timely service, and precaution against errors are the major
principles. As the organization started on a small scale, they did not have any written ethical
code of conduct, but he has mentioned that the company's principles, ethics like honesty were
organically embedded in the working style and the employees owing to their work culture.

Morals of the Organization:

The owner and one of the employees emphasized the importance of honesty, sincerity, and
integrity in the business. The management has ensured that these values have become an
inherent part of the culture and they make sure everyone follows the same. They have
mentioned that constant and open communication between the employees and the
management, motivating the employees to stick to the values goes a long way in ensuring that
business is conducted ethically. A small firm does face certain ethical issues from time to
time as it is a service-based company and most of the work relies on the frontline/ Fieldwork
employees. It becomes challenging to monitor the work throughout the day. To fix this they
have scheduled meetings at the start and end of the day and keep a check on the tasks. One of
the Junior associates we interviewed mentioned that this process has helped their mutual
trust, and many such issues are being nipped in the bud. The company also ensures that new
joiners are strictly instructed regarding the expected ethical behaviour and the importance of
the same. The company also believes that keeping a calm mind during questionable
circumstances with clients helps in analysing situations and making ethical decisions easier.
Losing your cool might lead to rash, unethical decisions which might taint the company's
image and lead to negative influence in the market.

Stakeholders and Ethics:

The different stakeholders involved in the company are the clients relating to the
telecommunication field and the Generators company, the customers, and their employees.
Customer satisfaction and employee welfare are some of the very important values the
company sticks to. Mutual respect and trust for the employees, and among the employees is
built over time. This gives the employees a sense of belonging and strives them to perform
better. As mentioned earlier the work gets demanding for the infield workers. Constant
support, motivation, and building a sense of responsibility are made sure by the associates at
the office. 
Customer satisfaction is an utmost concern. Quality and timely service is a must. They want
to be a one-stop-shop for their customers. As mentioned earlier this again comes with
building trust. At times the customers could be unreasonable and the employees are trained to
be patient. But when the situation gets unmanageable or inconvenient to the employees, they
are requested to reach out to the management promptly where the proprietor himself might be
involved if needed. This indicates the priority given to employees' respect, comfort, and
customer service as well. The third stakeholder, client satisfaction and contentment drive the
company forward. The organization believes that happy and satisfied customers lead to happy
clients too. Hence sincere and quality, truthful services are the primary requisite. 

Ethical Violation and Risk

The proprietor, employees disclosed a few situations wherein the organization encountered
unethical practices. One regarding the on-field engineers who collect the payment from the
clients. There were times when the money was pocketed by them. The organization did not
have records maintained as they were not informed about the processing by the engineers.
This raised issues when the organization called up clients for payments and discovered that
the payment was already. Hence it became difficult to track down where the payments had
gone, creating a disturbance. After observation and data collection, the employees are given a
warning on the same. But, repeated behaviour of this sort was not tolerated. Another issue
faced is the misplacement of price tags or artificial price raising, and the service engineers
freelancing without the company’s concern. Similar violations did occur in the organization.
There was a situation where an employee was involved in manipulating numbers in the
accounting software for individual benefit. Such manipulative actions are strictly prohibited
and have severe repercussions like expulsion. The management also feels that hiring a person
involves a lot of costs, time, and resources. They also invest a lot of trust, belief, and energy
in an employee. Thus, when an employee does something unethical it becomes really difficult
for the company to let go of that employee but in the larger interest of the organization, they
have to take tough decisions. The proprietor mentioned that it is challenging emotionally too
as they start to suspect their hiring and training process, beliefs, and values of the company.
An on the same situation mentioned that though it gets tough to accept the situation, it is
important to understand and respect the company's decisions for the good of all. Ethical
violations that could be related here would be indirect blindness towards the customers for
reasons to retain them. Universalism is another principle that can be observed in the
organization.

Organization and Ethics:  

As mentioned earlier the organization risks involve manipulating numbers and price tags,
employees freelancing directly to the customers which is illegal according to the client and
company’s policy. Fund collections not being informed to the management and diesel thefts
are a few other unethical practices that might occur in this line of business. These are the
practices that could be done by the employees. There are a few unethical issues faced by the
company through the customers as well. Use of foul language at the service engineers,
delaying or not doing the payments. While all these affect the company adversely the firm
must take major steps to avoid the same. The proprietor mentioned that they make sure they
have frequent interactive events and meetings to address the progress of the employees,
appreciate and recognize their work, and motivate them. They believe this process entrusts
sincerity, respect, and trust towards the organization and the work. This indeed helps them to
grow as a whole. 
Conclusion:

While it is challenging for the firms to stick to ethical norms, practice them and make sure
everyone abides by them, it is necessary to go by it as we have learned in the long run, It is
the same practices that drive any organization forward. The customers and clients stick to the
organization, and employees take responsibility for the tasks and perform better. Hence a
company with a clear set of ethical values and norms, and following their lead to the
betterment of the society and the firm in itself. 

Appendix:

Plagiarism Report: