As category leader for electronics, it is my responsibility to review suggested products for shelve space and allocation at Midwest ValueLand (MV). This semiannual review requires me to spend time with the products and to make decisions regarding which one I think will boost sales and benefit the business. As a leader, I approach these responsibilities with the Code of Conduct and ethical justifications in mind. I follow the path I would like my employees to follow. This review has brought two ethical issues to my attention. The following is a summary of those issues and how I plan to overcome these ethical obstacles.
Ethical Case #1
The regional sales manager for an innovative video game console selected for our review is my close relative. Although it may not seem that our interaction is unethical, there are several implications which could result from proceeding with our interaction. When two family members conduct business in the workplace for each other or with each other, this is called nepotism. It is a form of favoritism which allows family members to enjoy undue advantages just because there are family ties. In today’s society, we respect and require that figures of authority and privileges be given to those who have worked for them. Although it may seem that this game console is the hot item for the season and is guaranteed a spot on the shelves without review, others would consider my relations as unethical and favoritism (Nadler & Schulman, 2006).
The most basic aspect of ethics is to keep all procedures fair and accurate. If there is any room for favoritism or unfairness, then it must be eliminated. The last thing one wants to do is become the brunt of criticism for being unfair or unethical when the situation could have been avoided. Although nepotism and favoritism are amongst the most difficult ethical dilemmas to overcome, the right thing to do would be to acknowledge the presence of an opposition and deal with it head on. When favoritism or nepotism is allowed in the workplace it can cause several problems. Other employees feel that the integrity of the company is compromised and others feel that the employee is not qualified for the position because of their relationship with other employees in the company. Nepotism has caused so many issues within the United States that 19 of the 50 states have decided to make those types of practices illegal. To maintain loyalty amongst the company, all employees must feel that they are equal and that they have an equal opportunity for advancement and employment within the company (Nadler & Schulman).
Ethical Case #2
Another ethical hump I must overcome during this category review is to make a decision as to what to do with the LCD television sent to my home by of the representatives. It is not customary for vendors to send products to managers’ houses, or for the manager to take the product home. This can be considered to be unethical because it is out of the ordinary and gives unfair treatment to me as a category manager and him as a representative. I cannot allow for his gesture to provide him with special treatment. The only way to rectify this situation is to send the product back to the representative unopened. I will also speak with him about his conduct and how it is inappropriate. I will not be viewing this product at my home and will treat it like any other product.
Both of these cases require individual attention because they are conflicts of interest. MacDonald, McDonald and Norman describe these ethical situations and conflicts of interest as any situation where the personal or private opinions have influence or appear to have influence over official duties. In some instances the conflict may not be immediately apparent and in every case, it is important understand the proper procedures before it gets out of hand. Besides the two conflict of interests mentioned above, there are many other situations that need the delicate and immediate handling. As category leader, sales managers have been known to offer money or other monetary retributions to have their product put first in line on the shelves. As a representative of the company, I cannot benefit from evaluating these products. Therefore, it is a conflict of interest and considered unethical to accept retribution from any member of the company or its partners (MacDonald, McDonald, & Norman, 2002).
Other examples of conflicts of interest include using insider information to purchase or sell stock of the company. When someone benefits from the sharing of privileged information, this is considered unethical and unfair. Even a donation can appear to be unethical. When a member of the community is running for office and makes contributions to a business to gain their support, it can be looked upon as thought the business is only showing support because of the donations that were made. At no point should a business feel obligated to pledge its support to a public figure. If donations are made, they are based on the fact that the figure supports the business and its purpose (CTU).
To encourage ethical behavior in all business ventures a portion of the code of conduct has been dedicated to the recognition and definition of unethical behavior. This includes but is not limited to the disclosure of family or personal relationships within the organization and its business partners, a statement about acceptable gestures and gifts to and from suppliers and clients, and finally federal guidelines concerning inside trading and public stock. It is necessary in all ethical cases that are a conflict of interest for the employee to be removed from the situation as soon as possible (CTU).
All employees of the organization must act ethically in business and in their personal lives to uphold the code of ethics. If all personal are familiar with the code and try to do right by all of their actions, they will be able to uncover work-related unethical situations more readily. Audits may be necessary to maintain a balance amongst teams. Being proactive towards ethics and regular audits will keep employees thinking forward and against unethical activity. The worst-case scenario for unethical practices is for federal or regulatory agencies to become involved in the whistle blowing. This brings the entire company under close scrutiny in the agency and the customers’ eyes. Keeping a firm grasp on ethical practices keeps the company in good graces (CTU).
References:
CTU Online. (Ed.). (ca. 2008). Phase 4 Course Material [multimedia presentation]. Colorado Springs, CO: CTU Online. Retrieved March 21, 2009, from CTU Online, Virtual Campus, INTD670 – Leadership and Ethical Decision-Making: 0901B-04. Website: https://campus.ctuonline.edu/MainFrame.aspx?ContentFrame=/Classroom/course.aspx?Class=23719&tid;=39
MacDonald, C., McDonald, M., and Norman, W., “Charitable Conflicts of Interest”, Journal of Business Ethics 39:1-2, 67-74, August 2002. (p.68)
Nadler, J. and Schulman, M. (2006) Favoritism, Cronyism, and Nepotism. Retrieved March 25, 2009, http://www.scu.edu/ethics/practicing/focusareas/government_ethics/introduction/cronyism.html.
Reference:
- MacDonald, C., McDonald, M., and Norman, W., “Charitable Conflicts of Interest”, Journal of Business Ethics 39:1-2, 67-74, August 2002. (p.68)
- Nadler, J. and Schulman, M. (2006) Favoritism, Cronyism, and Nepotism. Retrieved March 25, 2009, www.scu.edu/ethics/practicing/focusareas/government_ethics/introduction/cronyism.html.
