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Batch B - Team 13 - Theme 2 (Ethical Dilemmas in Profit Organization)
Batch B - Team 13 - Theme 2 (Ethical Dilemmas in Profit Organization)
This project is according to the syllabus of the subject Managerial Values and Business Ethics
in which the subject states about what are the good or bad ethical values and traits for an
individual group and organizational level. The objective of this study is to understand about
the different types of ethical dilemmas faced by individuals and how they are reacting to it and
what all solutions they had taken to solve that if possible. This project gives a detailed insights
about ethics and values that is to followed in an organization. There are a mix of responds
which some may have impact on individual group and organizational which maybe sometimes
have huge impact or sometimes very less.
Acknowledgement
Firstly, we would like to express our special thanks of gratitude to our prof. Dr. Govind Gopi
Verma who gave us this opportunity to do this amazing project on the subject Managerial
values and business ethics. We came to know about so many new things.
Secondly, we would also like to thanks our friends and respondents who helped us to finalise
this project within this time frame.
Team 13
Sahishnu M
Vishnu A C
Vivek S Nair
K N Ganesh
Respondents’ details
The respondents are the employees who are been working in various organizations and various
industries like HR, IT, Finance, Sales etc. There where a mix of 12 males and 8 females in
total. The samples were collected through in-depth interviews. The age group of the samples
had varied from 26 to 41 who had at least 3 years of work experience.
Demographics
Name
Age
Gender
Sector
Year of experience
Designation
Ethical dilemma
Impact
R6 Once my friend asked me to sign for Conflict faced by the Individual level
him in order to not lose his attendance. respondent is between
It was actually an unethical practice principle and
and was confused what to do. benevolence.
Principle: What his
friend asked him to do is
unethical. Benevolence:
Although it is unethical
the respondent was
confused whether to
report or not as he is a
friend.
R7 I was a newly joined employee in a Egoism: - Here the HR Individual level
corporate firm, after successfully who hired was at fault
completing my work for one and a half and threatened the
years, I got a better offer from another employee to continue in
company and was planning to join order to cover the issue.
them by next month. I informed the Principle: - Employee
company about the new job offer and moves legally against
they said the company had two years the company.
bond and can leave only if I pay two
lakh rupees in order to leave early. The
HR had not informed me about the
bond at the time of joining and the new
HR is forcing me to continue working
for the company.
R12 In the company, I used to meet at least The responder faces the Individual and
four customers daily and needed to conflict between the group
have a meeting with them. For that, I following:
need to call and fix the meetings Egoism: to solve the
according to the time schedule given issue without damaging
by the customers. One day, my team the company’s image or
leader said that he had already fixed a goodwill
meeting for today evening, but
because of an emergency situation, he Principle: to listen to the
wanted to leave early, and I wanted to customer and say the
go and meet that customer. I said OK truth or to modify the
as I was not able to refuse the order reaction according to
from the boss. the company needs
In the case of R6, the dilemma is at the individual level. Here the respondent faces an ethical
dilemma whether to report the issue or to help his friend. In case R7, the dilemma her is at the
individual level and the respondent is facing the dilemma between moving legally against the
company or continue working as per the company instruction. And for R8 it is individual and
organizational level, because it is the personal interest of the authority and also taking risks
according to organization. In R9 case, the respondent is facing Individual level of ethical
dilemma. Here the manager taking all the credit for the work done by the employee in order to
get merit of promotion. Whereas in the R10 the manager wants to achieve his yearly targets
and tries to manipulate the employee and making him do unethical work.
In case of R11 and R12, the dilemma comes under group and individual level as they were not
able to make any judgement on the situation as they were confused in the stage of to be truth
or to protect the company. Case R13, the respondent is facing an individual or group dilemma
where he was totally confused about to stand with the group or report that to the authorities.
For R14 the employee is facing individual or group level issue where all others were cheating
the organization by sending the data to externals. In the case of R15, she is facing an individual
and organisational level of conflict where she was not able to get her rights and were totally
fed up with the situation and left the organization.
In the case of R16, the dilemma is at the individual level. Here the respondent faces an ethical
dilemma whether to reduce the quantity of steel to earn more profit or to stand with the
construction ethics. In case R17, the dilemma is at the individual level and the respondent is
facing the dilemma to inform the compensation given to procurement head by the supplier for
supplying his mediocre raw material to the manager. In the case of R18 dilemma is at the
Individual and organizational level, because one of the management member's daughters was
hired as the teaching faculty. Rather can considering the qualifications. In the case of R19, the
respondent is facing individual and group level of ethical dilemma. The managers were
isolating her in further meetings, as she raised few concerns which they took it negatively. In
the R20 case, as a hospital, they should consider basic human ethics. They can make profit but
they should not take advantage of the situation to a large extent.
Discussion or synthesis
A psychological hypothesis called the Moral Foundations Hypothesis seeks to explain why
different moral systems have similar foundational characteristics. The first person to suggest it
was psychologist Jonathan Haidt. He suggests five motifs that are common: care/harm,
fairness/cheating, loyalty/betrayal, and Sanctity/Degradation, subversion of authority. Our
survey results led us to apply the Moral Foundation theory, which we did.
Care/harm: In R3 and R4 the respondent has shown behavioural trait of ‘’Care” for their
subordinates and tries to help the subordinates by telling their difficulties to management. R1
comes under harm because it can cause harm to other candidates who has more capability than
the respondent’s boss relative and are qualified for the job. R13 had also shown the trait of care
for others by trying to convey the others. R19 comes under harm as she was ignored from most
of the meetings by managers. She was also isolated by them which caused her a lot of mental
stress.
Fairness/cheating: In case of R5we can see the discrimination faced by the respondent which
is not fare. R7 mainly relates more to cheating side, as the HR did not inform him of the bond
that existed during the signing time. R11 and R12 comes under cheating as in this case the
manager and superiors are trying to hide the fact that the customers were very rude and they
were trying to protect the company's goodwill and image. R16 comes under cheating because
they are not working for the clients as per the specifications. In order to gain more profit, they
were trying to reduce the quantity of raw material (steel) used. R17 comes under cheating
because instead of having a quality supplier the procurement head was focusing on his
compensation.
Loyalty/ betrayal
R14 comes under this trait as these employees were sharing the credential data of the company
to externals where they are cheating and not loyal to the organization. In the case of R6, he is
facing both the issues of loyalty and betrayal. He is being asked to help his friend in a certain
way which is against the organization. If the respondent helps his friend, then his loyalty
towards the organization is being questioned. And if he is not helping his friend then it is equal
to betraying his friend in spite of agreeing earlier. R16 comes under betrayal too, as the clients
completely trust that the company only works in an ethical manner. R18 also was more into
betrayal as the management did not provide a faulty based on the qualifications to the students.
R20 also comes under betrayal as the hospital was utilizing the situation to increase its profit.
Authority/subversion: In case of R2, the management comes under authority because they
use power to give promotion to a junior of the respondent as that junior is a close relative of
one of the directors of the organization. Here in R8 the employee is demanded to transfer the
money unethically by the consent of the customer and the supervisor just because the customer
is important to the company. In R9 we could relate it to authority as the manager is taking all
the credit to himself as he finds himself superior in Rank to the employee who works hard. R10
also involves the authority perspective as the employee is requested to alter the statements so
that the manager could get his yearly targets achieved. R18 was more into subversion as the
management used their power to hire the faculty member. Without considering the qualification
needed for the job.
Sanctity/degradation
R15 comes under this as the employee felt very bad about the organization that degraded all
the other things about the company. R19 comes under degradation because the exposure the
respondent got was isolation from all the managers' meetings. And she finally quit her job from
the company but will be still confused to raise the concern or not in her future company too.
Conclusion
There are ethical conundrums everywhere we go, whether it be at work or at home. Ethics
problems at work can range from significant ones that affect the entire organisation to minor
ones that only affect the person involved and not society as a whole. They will address these
difficulties in various ways because each person or organisation is distinct. There are numerous
viewpoints, philosophies, and approaches that can be used to address these kinds of problems.
For instance, health professionals have already been instructed to save the lives of people
whose safety cannot be compromised. In these situations, people will encounter difficulties,
but they can overcome them with the aid of organisation. Additionally, we discovered various
ethical conundrums in various organisations. Some problems are more serious, affecting the
entire corporation and violating corporate policies as well as international law. People engage
in these immoral behaviours in both the company and society for financial gain and personal
gain. Additionally, some ethical conundrums are minor and simple enough for an individual or
group to resolve. The ethical conundrums in this situation and the ethical conundrums in society
are considerably dissimilar, as is the method for overcoming them. In an organisation, it can
be challenging to decide whether to tell the truth or conceal it based on self-moral principles,
organisational rules, and regulations. Furthermore, there is no assurance that the problem will
be resolved whether we tell the truth or not. Therefore, it's quite challenging to resolve ethical
conflicts within a business. In our situation, the most frequent ethical conundrums are
authority/subversion and cheating/fairness.
As a result, this initiative taught us that in order to follow our moral principles and make the
right decisions, we must abide by both organisational norms and regulations as well as social
laws. Because these moral conundrums repeat themselves frequently, businesses must establish
various committees to safeguard their reputations and the interests of their personnel.
Appendix
Survey-1
Name- Sreehari
Gender- Male
Age- 33
Have you ever faced any specific ethical dilemma during your job? Yes
I was working as assistant manager in an IT firm. There was a woman in my team who is
talented in the IT field and did a lot of successful projects which gave her a good reputation in
the organization. Unfortunately, she had to take a long leave because her mother was suddenly
affected by stroke. She re-joined after the leave and she had a lot of work pending to complete.
Even after joining she failed to come to the office at time and was absent in some of the
important team meetings. Her team members were totally unhappy about this. Some of the
team members came to me and complained about her as she is not completing her work on
given time. I already knew the condition of her mother as she is the only daughter who takes
care of her mother. I said these issues to the senior managers and they also know that she is
talented and needed employee for the organization. The general rule of the organization is to
terminate those employees who fails to complete the work and attend important meeting. The
other team members want me to act against her. Now I must take the final decision. This is the
ethical dilemma I faced as a manger in my organization.
I was in a dilemma that whether I stand with the other team members and act against her give
her one more excuse as she is a talented employee.
Gender- Male
Age- 38
Have you ever faced any specific ethical dilemma during your job? Yes
I was the assistant sales manager in a private company which sells all types of bags. There so
many sales men working under me. There was one person who have extraordinary skills who
always completes his targets within the given time and many times became the best sales man
in team. One time he faced severe health issues and took leave. When he came back after the
leave, he became tired because of the health issues and was not able to perform well in the job.
He failed to complete his targets. My senior managers became unhappy with his performance
and they want to dismiss him from the job. They discussed the situation and gave order to
dismiss him. But I was disappointed as I knew him very well and I was sure that he can do
better and completes his targets, Thus I became confused and this was the ethical dilemma that
I faced in my organization.
It affected me emotionally as he has health issues but still, he is ready to work. He is a hard-
working guy who can do better for the organisation?
No
I had a personal conversation with the sales person and he told me to work hard to achieve the
targets and even about the skills and capabilities. He succussed in achieving the targets and he
is still a successful employee in the organization.
Survey- 3
Name- Shyam
Gender- Male
Age- 38
Have you ever faced any specific ethical dilemma during your job? Yes
I was working as sales head in a private organization in Madhya Pradesh as sales head. I got
transferred to another state as the regional assistant manager in sales and my subordinates in
the team were from that state. I faced a lot of discrimination as I am from another state and
does not speak their language. They were I complained to my manager but he supported my
subordinates by saying that the discriminations are quite common in organization. I became
disappointed. I face ethical dilemma whether to raise this issue in the organization and inform
to the higher officials or stay silent as it can create enmity between me and my manager.
No
I decided to adjust with the situation and within a few months I was transferred back to my
state.
Name- Praseetha
Gender- female
Age- 38
Designation- HR manage
Have you ever faced any specific ethical dilemma during your job? Yes
No
I have no other option so I finally chose my boss relative and I believed the other.
candidates will get better opportunities
This incident hurt me emotionally and I lost the trust in my job ethics.
Survey- 5
Name- Varuna
Gender- female
Age- 35
Have you ever faced any specific ethical dilemma during your job? Yes
No
I remained silent and try to focus on my work and I believed that I will be promoted shortly
because of my job performance.
Survey 6
Name : Santhosh
Gender : Male
Age : 27
Designation : Developer
Work Experience : 4
Have you ever faced any specific ethical dilemma during your job? yes If yes
I felt cheated and betrayed by the company. They took my work anyway but refused to pay up.
The management could have informed me about the termination of the project but failed to.
I mailed a complaint to my manager attaching the proof of assigning the project to me and the
issue regarding the project remuneration. But unfortunately no action was taken.
Survey 7
Name : Govind
Gender : Male
Age : 24
Designation :
Work Experience : 4
I was a newly joined employee in a corporate firm, after successfully completing my work for
one and a half years, I got a better offer from another company and was planning to join them
by next month. I informed the company about the new job offer and they said the company had
two years bond and can leave only if I pay two lakh rupees in order to leave early. The HR had
not informed me about the bond at the time of joining and the new HR is forcing me to continue
working for the company.
This was for the first time experiencing such an event hence I was confused what action needs
to be taken.
Since the company had not spent any money on my training and the bond was not conveyed at
the time of joining, I went to my friend who is a lawyer and explained the situation and filed a
formal complaint towards the company and sent it to them. Later that week the company
officially allowed me to leave the company and completed all the formality.
Survey 8
Name : Shankar
Gender : Male
Age : 26
Work Experience : 3
I was working as an assistant bank manager in south India. As I was getting closer to my
manager, I started receiving phone calls during the working hours from potential employees to
transfer huge amounts without any cheque. As they were very important to the bank, the
manager insisted on completing the transaction without the cheque.
As an employee I was taking a huge risk and was afraid to take a stand.
I had no choice but to wire the transaction as the manager insisted on doing this. I could not go
against my manager as it would lead to a wrong footing and could affect my future promotions.
Survey 9
Name : Meenakshi
Gender : female
Age : 40
Work Experience : 15
As a Chief accountant I was asked by my superior to alter the company statements of the sales
in order to achieve the yearly targets. I could not make my own decision and all my work was
based on managerial pressures which was unethical. I was forced to follow it.
This completely changed how I looked upon my manager and the decision he takes
Name : Parvathy
Gender : Male
Age : 29
Work Experience : 7
I was assigned a project from a high potential client by my manager and upon completion of
the project I was asked to submit the project to the manager. Upon enquiring the delivery of
the project I was informed that it had already been done and I came to know that the manager
took all the credit all to himself.
As a person I was angry at the manager for stealing my work and taking the credit.
As it was my superior manager I could not take any action as my future promotions depend on
his decision and dind not want to confront him.
Scenario 11
Name: Ratheesh R
Gender: Male
Age: 26
Have you ever faced any specific ethical dilemma during your job? Yes
I was working as a team leader for Toppr Technologies Pvt. Ltd. One day my boss gave me a
lead and asked me to call that customer, saying that it was a worthy customer and that I needed
to get a renewal from them. As per the instruction from the manager, I called him. But when
he attended the call, he was saying such abusive things. The issue was that he had bought the
product for a lot of money earlier and the company did not service him properly, so he was not
able to use it. He had raised so many complaints, and the company didn’t look into them.
I had complained directly to the boss and senior authorities about the customer being rude and
abusive. But the superiors said in a way that it was my duty to handle such customers, whatever
the scenario is and whatever it takes to get the renewal from them.
No
Scenario 12
Gender: Male
Age: 27
Have you ever faced any specific ethical dilemma during your job? Yes
In the company, I used to meet at least four customers daily and needed to have a meeting with
them. For that, I need to call and fix the meetings according to the time schedule given by the
customers. One day, my team leader said that he had already fixed a meeting for today evening,
but because of an emergency situation, he wanted to leave early, and I wanted to go and meet
that customer. I said OK as I was not able to refuse the order from the boss.
When I got into the customer’s house, they locked me inside the house because they were a
very rude customer and had already asked for a refund, which the company refused to give.
They were not allowing me to leave the house until the cash had been refunded to them. When
I called the boss at the time, he initially did not answer the phone, but after a long time, he
finally did and said he couldn't do anything and advised me to leave the house. At the time, I
had no idea what to do.
I really hated the company and my superiors as they were not supporting when an issue had
come.
Gender: Male
Age: 30
Have you ever faced any specific ethical dilemma during your job? Yes
I was working for an insurance company. I used to travel a lot for my work in order to visit the
customer. The travel allowance was paid in such a way that we will not be paid the full amount
of the bill. But I was fine with it. After some months, my teammate called me one day and said
that the allowances and expenses we are getting are very low here as we are already working
at maximum capacity. So, I'm going to make more fake bills and claim them so that I can get
a consistent amount to him as well, or else he'll be caught and punished for the malpractice he's
committing.
I was in a dilemma and didn’t know what to do. If I go the ethical way, I’ll lose my relationship
with him, who is very useful, and if I don't, I’ll be unethical to myself.
Gender: female
Age: 28
Designation: Supervisor
Have you ever faced any specific ethical dilemma during your job? Yes
I was employed by a financial services firm. The work was going very smoothly there. We are
in the process of calling specific customers for targeted purposes. It was more like or similar
to what BPO does. We had so many customer bases at different companies, which is very
confidential. Sometimes my colleague sends the data to other sources to earn money. But when
I enquired further, I discovered that it was common among everyone in my team, and even the
superior was completely supportive.
I was in a situation where I don’t know what to do. And lost the trust in the company.
Reported to the higher superiors and don’t know wat happened next.
Scenario 15
Name: Haritha
Gender: female
Age: 31
Have you ever faced any specific ethical dilemma during your job? Yes
I had been working as the senior relationship manager for 4 years. My work is usually to get
sales from customers through the bank channel. I was one of the top performers in the entire
state and had won several awards and recognitions for that. I like the work very much, and I
was doing my work very sincerely for the company, and I’d brought tremendous change and
revenue to the company too.
As part of my general employee rights, I was also enrolled in the company's family insurance
plan. But even after performing this much, when my father was affected by a serious disease
and needed to undergo a major surgery that would cost a huge amount of money, the company
was not ready to claim the insurance. Even when I met with my immediate and superior
managers, they said, "We cannot do anything in this," and they were not in favour of my filing
an insurance claim. "If you're already earning so much in incentives, do you really need this
money?" they asked. I was totally confused by the behaviour of the organisation and my
superiors, and I was not able to claim my rights.
Name: Rahul R
Gender: Male
Age: 28
Year of experience : 5
I was tense and got a negative view of the company and the senior.
Still, I didn’t follow what exactly what my project manager said. I reduced the quantity of steel
but not to a big amount.
No
Survey 17
Gender: Male
Age: 29
Year of experience : 6
I felt I was very weak enough to respond to this as I was new to the company. Informing the
issue can cause conflict which is wont to good for my career.
I didn’t respond to this, because the brick didn’t fail the test every time. So the higher authority
won't be noticing it much.
No
Survey 18
Name: Ramani Radhakrishnan
Gender: Female
Age: 48
Year of experience : 25
Designation: Principal
I was working as a principal in a private school. During any hiring process of teaching faculties,
we conduct personal interviews with the applicants. The panel members include a few members
from school management, senior teaching faculty, and me. We usually hire the faculty based
on their qualification and work experience. There was one incident where there was a need for
science teaching faculty. I informed this need to the school management and to have the hiring
process including the personal interview. But after a few days, one of the school management
members called me and said to hire a faculty who is a daughter of a senior management
member. Later I checked her profile, but the qualification and experience were less than what
the job role was expecting. I was concerned about the students who should be provided with
the required quality education by the school and as a principal, I have to make sure of it. So, I
politely informed this to the member who called me but his reply was the same and said
management wants her to be hired. Thus I couldn’t change the decision.
I felt bad after this situation that it was not morally correct to do it to the students.
After appointing her, I said some criteria which should be followed for teaching. These criteria
include some standard contends to be referred so that the quality of teaching will be maintained.
No
Survey 19
Gender: Female
Age: 32
Year of experience : 8
Designation: Analyst
I had a talk with my manager regarding this and tried to make him understand the situation,
which was not to hurt the steps taken by the managers but to increase productivity by discussing
the issues faced by employees regarding work.
Name: Rajan
Gender: Male
Age: 54
Year of experience : 22
I am working as a senior pharmacist for a multi-specialty hospital in Kerala. During covid time
there was a great demand for a few products like surgical masks and sanitizers all over the
place. During the initial time of covid, the pharmacy used to get these products at a cheaper
price but they sell them at a very high margin. They get surgical masks at Rs 3 but they sell it
for Rs 12 or 13 as there was less availability of surgical masks and the demand was very high.
Likewise, they also sell locally made sanitizers for high margins. It is mandatory to wear the
mask for everyone. Also, many financially low patients come to the hospital but the price
remains the same. That was the time I felt even the hospital is taking advantage of the situation
and using it to increase the profit without considering basic ethics.
I felt morally bad because as a hospital they should consider basic human ethics. They can
make profit but they should not take advantage of the situation to a large extent.
I had a talk with a manager of the hospital regarding this, he said he will talk with the
management and will take a decision.
No