Business Ethics

Task 1 

The ethical issue occurs in case a provided activity, decision, or scenario ends in the formation of

a dispute with the moral principles of the society. Put simply, the state of dilemma or the

uncertainty between wrong and right when trying to make a decision concerning alternatives is

referred to as an ethical issue. 

Here, in this situation, Michael Vasquez is facing this issue in the provided scenario since he has

been provided by his immediate boss with the confidential strategic documents as well as further

private data of the nearest rival of his firm. Furthermore, the immediate boss whom Michael

works under has also stated that the data was acquired by using the assistance provided by a

coworker via the help of electronic access and that his boss did not personally crack any

password. This dilemma caused suffering to Michael as to whether he should or should not take

advantage of such confidential data of the rivals of the company for the personal advantages of

his company.

Here, an ethical issue emerges as there exists no guidance present for the correct guidelines of

the company. The fact that using such data is not ethical is something that Michael also knows

about, and it is because of this reason that he does not feel good regarding the matter. However,

because he is an employee at the company, he is obliged to work according to the directions of

his immediate boss or boss. As such, he is unable to put his company’s reputation in danger by

spreading that his company has acquired the confidential information of the rival company.

Furthermore, if Michael decides to do as he has been instructed to then there is a possibility that

the company will continue to do such activities in the future again. Although he already knows

that doing such activities will provide competitive benefits to the company, even then he is
unwilling to work for a company that, to attain success in the marketplace, uses such kinds of

tactics.
Task 2

Recommendations for Michael in the Light of Ethical Theories

According to the situation presented in the business ethics case of Michael, it is recommended to

Michael that he should be making use of the private and confidential information of the rivals as

per the instructions given to him by his superior for the good of the organization. This will help

his organization in gaining the competitive edge over the rivals quite easily and make huge

success in short span of time. Moreover, since he works at the organization, it is obligatory for

him to act in accordance with the given instructions of his boss. As a consequence of this, there

is an ethical dilemma for him which can be resolved by two ethical theories. These ethical

theories are named as deontology theory and utilitarianism theory.

In the Light of Deontological Theory

This theory asserts that people should make decisions ethically in compliance with their

responsibilities and obligations as they have been assigned by their bosses in the organization in

any given situation (Alexander & Moore, 2007). This implies that the duties and obligations

should be followed by the person in charge of the situation as doing so is deemed as ethically

correct and thus any decision made by the person should comply with those instructions. It is,

therefore, recommended that obligations are to be fulfilled by Michael as he has been asked by

his boss to do so because upholding his duty will be viewed as correct from an ethical eye in the

light of deontological theory.

In the Light of Utilitarianism

The other perspective is of utilitarianism which is based on the notion of the capability of a

person to anticipate the future outcomes of the decisions he makes and actions he takes in a

given situation (Blackorby, Bossert, & Donaldson, 2002). So, the ethics in the light of utilitarian
perspective accentuates that the alternative that is most suited and most beneficial for the

majority of the people should be the choice made by the person, irrespective of what the societal

constraints are. This may include regulations of the company or the personal feelings of anyone.

Thus, according to the utilitarian perspective, Michael should use this private data of rivals for

the benefit of the company as this will not just benefit the company in gaining the competitive

advantage against its rivals but also help a number of employees in the company to make use of

this information and do their work in a shortcut way.

Task 3 

Perception to Ethical or Unethical Behavior of the Boss

Since the way the information of competitors’ private data was attained in the given case was not

ethical, the use of this information did not appear ethical to Michael. And since the data was

unethically obtained by Michael’s boss, he is perceived to be unethical. Michel, being a person

who believes strongly on ethics of work in an organization, is considering leaving the

organization as he cannot work in an organization which is involved in malpractices of business

and does unhealthy competition. But he is also worried that such type of unfair and unethical

business practices may continue to prevail in the organization even if he leaves the organization.

And thus, he is concerned about the unethical behavior and actions of his boss.

Ethical business dealings foster healthy competition among the rivals and encourage companies

to act ethically to gain a competitive advantage. Healthy competition concentrates on improving

product quality and delivery to the end consumer. This encourages companies to come up with

new ways to improve and be more effective and efficient to be superior to their competition. This

also makes them strong conceptually and motivates them to utilize scarce resources in an optimal

way to maintain quality. On the contrary, unhealthy competition and unethical business practices

lead to unfair means and malpractices. This is negative and companies get deviated from their

journey of success.

This case also represents the situation of unhealthy competition as Michael’s boss has acquired

the competitor’s private data unethically to ensure the success of his company. Instead of using

unfair means for the acquisition of private & confidential data of competition, which is wrong,

Michael’s boss could have articulated uniquely innovative strategies that can compete adequately

against the rivals and helped in gaining the confidence and trust of the consumers. Additionally,
when customers will discover that the company has utilized the confidential data of the

competitors, the organization will lose its reputation. Moreover, the employees of the company

who work ethically will also not feel like working with such an organization and will leave it

which will increase the turnover ratio.

Task 4 

Should Michael Blow the Whistle?

As per the situation presented in the case, it is highly recommended that Michael should blow the

whistle against his boss that he is involved in malpractices. Not just he is engaged in unfair

business practices; he is also asking Michael to utilize this information for the short-term

advantage of the company. Since the documented evidence of private and confidential

documents of competition is in his hand, Michael’s whistleblowing is justified. The evidence

includes the partnership agreements, product planning, pricing tactics, and other such private and

confidential documents.

Whistleblowing

The term is referred to as raising the voice of the employee of an organization against the

unethical practices taking place in the organization. Such an employee is called a whistleblower.

The whistleblower is triggered as a consequence of moral reasons rather than financial and

monetary returns and reasons. It is a drive to act justly and encourages such an employee to raise

the voice against unethical conduct. People who genuinely believe in accomplishing their ethical

obligations often are whistleblowers. These whistle-blowers speak out if they come across a

situation where they get to know that something wrong is going on in the organization. 

The same situation is being presented in the given scenario where Michael knows it well that

using such private and confidential data of rivals will lead his organization to its new heights of

success in the industry against its rivals. This is why he is in the dilemma that whether he should

continue to work in such an organization or not and whether he should speak to higher

authorities and blow the whistle against his boss or not.

Motivators and Justification for Whistleblowing

A lot of circumstances make an employee motivated and consider the option of whistleblowing.

There are a number of reasons which make whistleblowing justified. At first, when an employee

discovers the fact that some kind of severe risk and harm is anticipated to the other employees,

consumers, creditors, or any other stakeholder of the business, or their moral concern, then it is

justified that he or she should blow the whistle. Furthermore, whistleblowing is also justifiable

when supervisors do not take any action despite the best efforts put up by the employees to

remedy an unethical situation or action. In addition to this, when an employee has some kind of

sufficient documented evidence available at his hand that can help him prove the truth and facts

to the test of law or reveal it publicly, whistleblowing is the right choice to make.
Task 5

Corporate morals or more commonly known as business ethics or corporate ethics are

responsible for executing the significant role of managing the organizations to fulfill the

essentials of the corporation in addition to fulfilling the duties of the public from which they gain

various resources for day-to-day operations of the organization. Based on this particular

corporate ethics case study, subsequent motives have been discussed which highpoints why

morals are important or pertinent in the corporate world:

Morals let making tactical conclusions - The staffs and managers of the corporations that depict

moral conduct are proficient enough of making those conclusions which are measured to be

publicly adequate. Additionally, it supports the contribution of all the depositors in the procedure

of conclusion building of the association. It will benefit the case study corporation in creating

conclusions that are advantageous and morally accurate (Hooker, 2003).

Morals upsurges worker retention - The term employee retention can be defined as the

competence of a corporation to preserve its workers in the company for a lengthier period. As far

as the opinion of the workers is apprehensive, they need to effort in those establishments or

corporations in which their sentiments and privileges are respected (Clegg, Kornberger, &

Rhodes, 2007). This can correspondingly be related to this particular case study pertaining to

corporate morals where Michael does not need to labor with the corporation that practices

immoral strategies for gaining modest benefit in the arcade.

Moral rehearses play a vital part in constructing as well as upholding character - The morals of

the corporate play an essential part for the clienteles in inspecting whether they need to involve

with the corporate or not. Corporate accomplishment is guaranteed simply when it is proficient

enough of upholding a decent status midst the clienteles (Sims, 2000). This particular corporate
ethics-based case study similarly delivers that the status of the corporation will be tumbledown in

circumstance the deeds of the corporation will go out to the media.

Corporate morals permit vigorous rivalry - Moral performance does not lead the corporations to

get hooked on misconduct; as an alternative they let the clienteles choose as per their taste

(Werhane, & Freeman, 1999). In the given corporate morals case study, the corporation is found

to be involved in exhausting discriminating income for reaching modest benefit in the arcade.

As a consequence of this, it can be decided when examining the given corporate morals case

study that Michael is going through moral distress concerning the usage of private and

confidential data and information of the rivals for the benefit and success of the firm, he is

working in. Michael must, consequently, accomplish his responsibility concerning the

association and must ensure as educated. Nevertheless, the rehearses being accepted by Michael's

superior are entirely incorrect and he must stick to vigorous rivalry for gaining a modest

advantage in the arcade. Michael is recommended to knock back the signal in contradiction of

the superior for the determination of notifying the upper management and investors concerning

these actions being accepted in the business. For this reason, seeing the total conclusions gained

in the corporate morals case study, it can be indicated that morals and ethics are significant for

the corporate world as it permits constructing tactical conclusions, making strategic decision,

upsurges withholding of employees in the organization, developing a positive image and

reputation among customers and rivals, as well as in engaging in a healthy rivalry in the industry.
References

Alexander, L., & Moore, M. (2007). Deontological ethics.

Blackorby, C., Bossert, W., & Donaldson, D. (2002). Utilitarianism and the theory of

justice. Handbook of social choice and welfare, 1, 543-596.

Clegg, S., Kornberger, M., & Rhodes, C. (2007). Business ethics as practice. British Journal of

Management, 18(2), 107-122.

Hooker, J. (2003). Why business ethics. Unpublished manuscript, Carnegie Mellon University.

Available at: http://wpweb2. tepper. cmu. edu/ethics/whybizethics. pdf.

Sims, R. L. (2000). Teaching business ethics: A case study of an ethics across the curriculum

policy. Teaching Business Ethics, 4(4), 437-443.

Werhane, P. H., & Freeman, R. E. (1999). Business ethics: the state of the art. International

Journal of Management Reviews, 1(1), 1-16.