Download BS115 Principles of Management

OUTLINE OF PRESENTATION
A
Introduction
Brief outlineQUESTION
of the scenario
OF to Decision Making
Point 1 – Approaches
Point 2 - Determine the next step
Point 3 – Whistle Blowing
Point 4 – Leave if Necessary
Summary
References
INTRODUCTION
• Every day, people are making choices and decisions that they face
difficulties and questioning themselves about what and how should
they solved it which the choices and decision has to do with ethical
issues.
• Generally, ethics questions are basically everyday questions that
people asked to take actions to make ethical decision. As for
Stephanie, based on the scenario she faces difficulty with some
transactions withdrawn without any explanation.
BRIEF OUTLINE OF THE SCENARIO
• After a few weeks, Stephanie discovered a discrepancy in the books of her
firm’s projects. Six separate cheques for K10 000 each had been written by
Stephanie’s boss over the past year each made payable to cash with no further
explanation. When Stephanie approached her boss, she was told they were
just another cost of doing business and she should inflate the cost of other
items to cover the payments.
What would Stephanie do now?
• Stephanie again protested to her boss, who responded with obvious irritation.
He said such payments were common and the use of substandard material
wouldn’t affect safety.
• . Stephanie hasn’t heard anything in three weeks and has just discovered a
seventh K10 000 cheque payable to cash has come through.
APPROACHES TO DECISION MAKING
Generally, Managers face many different kinds of tough
ethical choices often from a normative approach – Which
is based on norms and values to guide their decisions for
the overall good of a business organization, which
includes internal and outside as well.
Utilitarian approach
Is channeled more on the bases of moral behavior which
produces the greatest good for the greatest number.
Stephanie as to consider the effect of each possible decision
made in all parties for the greatest good and for the greatest
number.
• The individualism Approach contends that acts are moral
when they promote the individual’s best long-term interests.
• Stephanie as to make the decision that best serves her longterm self-interest, and not just following her boss
instructions.
• So the approaches that she will take will produce the
greatest good and for the greatest number, and most
importantly for her reputation as a new employee
DETERMINE THE NEXT PERSON
• According to the scenario, Stephanie
approaches her boss and supervisor to
clarify the situation several time.
Depending on her organization, she might
seek help from her boss leadership, a
compliance, an auditor and ethics hotline.
• She should review the chain of command
and follow the right procedures to carry
on. If her boss cannot get the work done
ethically, she has to seek someone who is
in top level management to help solved
this issued.
A COMPLIANCE OFFICER.
There are several people she can consult;
she may first start with a compliance officer
who is the person within any organization
that make sure;
 The company
 Its employees and
 All its activities
• That come to an agreement with relevant specialization and regulations which involves health and
safety, legal or quality standards, environmental and also any ethical policies to that company.
Simply to help her ensure ethical manner to deal with the issue.
AN AUDITOR.
• She can also consult an auditor to check all the transactions of the company. The purpose of an
auditor is to review all the financial statement of the company and making sure that all the
transactions are accurate.
• For her case, it is better to approached internal auditor to ensure activities in company to run
smoothly and follow the rules and laws as well checking each departments.
• Another vital aspect they perform is to protect company’s assets from risk management that
involves fraud and legal exposure, reveal area of company inefficiency and helps to make
improvements.
ETHICS HOTLINE.
• She might also consider ethics hotline, “statics show that a hotline program for reporting
wrongdoing is the most important tool for reducing fraud inside the company.” According to 2012
ACFE Global Fraud Study states that the application of ethics hotline encourages and allow
workers and clients to make known the corruption and wrong doing within any organization.
WHISTLE BLOWING
Benefit
Basic
needs (Shelter)
1. 
What
is Whistleblowing?
 act
Quality
houses.
the problem
is solvedor
the
firm can build
houses to
that
can last
long to
Is the
of reporting
orIfexposing
an unethical
unacceptable
behavior
outside
parties
benefit
thethe
people.
or can be
within
organization so that actions can be taken to eliminate it.
 Less money spent. For example , the people of the community would not need to
maintain principle
the house that
often,
if the
houses
run down.
2. Cost-benefit
– The
choices
that
we make
every day has its cost and benefit.
Below are the likely cost and benefit if Stephanie blows the whistle.
Weighing the cost and benefit, Stephanie can seek ethical theories to help her carry out
Costher decision.
Job insecurity. For example, she may be fired, or degraded to a lower position.
3.
Utilitarian
theory:
utilitarianism
theory
thebehind
greatest
amount
of a
good for
Disloyalty
to firm.
Forthe
example,
coworkers
willpromotes
start to talk
her
back as
the greatest number of people. Stephanie is going to whistle blow the unethical
betrayer.
situations in the firm.
LEAVE IF NECESSARY
• Establishing a good cause to quite, such as notifying the
employer of the unethical activity and giving reasonable
time to fix the issue.
• Determine the next step of approach, such as ethics hotline,
or to either move up to the next level of managers.
• Safety – to be able to defend her position as an accountant
and try as much as possible to make better decisions
regarding her future.
SUMMARY
• When Stephanie started working in the organization she encountered an ethical
dilemma, and now she is caught up in this situation and has taken theses approaches
to deal with it.
• Individualism Approach
• Utilitarianism Approach
• Whistle Blowing
• Leave if necessary – After all these approaches are taken and there is still no
responses or the responses is negative, the last option she could resort to is leave the
company.
REFERENCE
Bartol, M.K., Martin, D., Tein, M., Matthews, G., (2005). Management: A Pacific Rim Focus (4th ed.).
McGraw-Hill.
Bauelua, R. (2021). Social Responsibility and Sustainable Development: [lecture notes]. Madang,
Papua New Guinea: Faculty of Business and Informatics, Divine Word University Madang Campus.
Bauelua, R. (2021). Lecture 2: Ethical theory and Business (power point slides).
Moodle.
How to Respond to an Ethical Dilemma. (2020). Michigan state University.
Mi chiganstateuniversityonline.com/resources/leadership.
Ken Boyd, March 18, 2019, QUICKBOOKhttp://www.quickbookonline.com
Michigan State University, Feb 2020,
http://www.michiganstaeuniversityonline.com
Any Questions