Empress Luxury Lines free essay sample

Analyze the ethical dilemma faced by Antonio Kevin Pfeiffer, a computer technician employed by Empress Luxury Lines for the past two years, had provided a plan to upgrade the computer system. Unfortunately, the computer system was hit by a powerful thunderstorm wiping out connectivity on the popular cruise liner. When Kevin investigated the damage he realized the underground wires and computer circuits could be repaired for roughly $15,000. His Supervisor at Empress Luxury Lines, Phil Bailey made a phone call which in turn presented an ethical dilemma. Phil proposed to Kevin that he dig up nearly all the underground wire and cable and remove it before the insurance adjustor appeared. If Kevin agreed to do what Phil directed, the cruise liner would receive close to half-million dollars being able to fund new wiring and obviously a new computer system. Obviously Phil was not practicing any specific code of ethics: A formal statement of the organization’s values regarding ethics and social issues (Daft 2010 p 144). Antonio Melendez knew of the rumors Empress Luxury Lines defrauded insurance companies before his arrival. He swept them under the rug; however, now he wasn’t so sure they weren’t true. There wasn’t a system in place for employees to confidentially report wrongdoing internally, and without protecting the whistle-blowers, they wouldn’t get the support needed. Create and describe two strategies for addressing the situation at hand. Managers are often faced with tough ethical decisions impacting an organizations reputation and questioning an employees integrity. The four approaches that are relevant to managers are the utilitarian approach, individualism approach, moral-rights approach, and justice approach. The utilitarian approach is the ethical concept that moral behaviors produce the greatest good for the greatest number (Daft 2010 p 132). Antonio, the decision maker, would be expected to consider the effect his decision would have on all parties and make the decision that optimizes the benefits for the greatest number of people. Additionally, the Individualism approach applies. This is the ethical concept that acts are moral when they promote the individual’s best long term interests (Daft 2012 p 132). The action that is intended to produce a greater ratio of good to bad for the individual compared with other alternatives is the right one to perform. Antonio knows the behavior is not ethical and has to make a decision to accommodate the team with his long-term interest in mind. Ignoring the bad behavior only causes business associates to continue to act poorly, damaging the company’s reputation even further. There is also the risk of losing good employees over bad judgement decisions. Assess the pros and cons in each strategy you just described. Antonio will have to weigh the pros and cons if using the utilitarian approach. The computer system that is needed could easily be implemented if the insurance money collected is near half-million. This could make employees happy and provide more efficient service. Should anything go wrong with the insurance filing there is the risk of being involved and held accountable, perhaps evening losing his job over fraudulent insurance claims dampening his ability to get hired somewhere new. Looking at the individualism pros and cons, Antonio will have to weigh whether the priorities are to himself, Empress Luxury Lines, or the greater good. This is the most difficult of decisions as it can have the longest impact. He may need others in the future and individual self-direction can harden business relationships. Individualistic decision making may offer little incentive for employees to consider how selfish actions affect the future of the organization. Is personal decision making the best factor when making a decision? Ethically, I think the long term knowledge of right and wrong make a difference. No one’s success should be built around bad decision making when fraud is involved. Place yourself in Antonios position and decide which option to take and explain your rationale If I was in Antonio’s decision, there are several changes I would immediately place to assist with ethical decisions. A code of ethics would be establish with organizational stakeholders. It seems a formal statement of Empress Luxury Lines values regarding ethics and social issues needs to be outlined and shared corporate wide. Ethical Leadership starts from the top down and an Ethical Committee could be formed to support difficult decisions manages face. Ethical hotline and training could be established to support these difficult decisions. There needs to be a policy in place for anonymous reporting when seeing a breakdown in ethics where the organization can research the problems and no one fear being blamed or tattling. Once the code of ethics has been established and leadership supports the newly implemented policy it will be easier for Antonio. Until then, perhaps the computer system has to wait. If a $15,000 repair can fix the currently damaged lines, then that is the approach I would take. It is completely wrong to file an insurance claim specifying more damages than occurred, especially to profit. The management of this cruise ship needs to better plan for upgrades and budget accordingly. I support the utilitarian approach and would recognize Kevin’s behavior for making the right decision for the greater good. Phil and Roger, the CFO need to be reported for making bad business decisions which ultimately could harm the organization and cause impending lawsuits for insurance fraud. I don’t believe any one of the four normative ethics approach can apply to ethical decisions managers my face. Being a person with integrity, compassion, and care for others, it may be that a piece of each approach applies when making decisions. There are pros and cons to each. The utilitarian approach focuses on everyone’s happiness. I like this this approach encourages managers to look beyond self interest and do the bigger task of supporting the great good, the majority.