Description of an Ethical Dilemma
Most organizations or businesses provide regulations that all employees are expected to observe and follow. For a business to carry out its services in the right manner, it has to establish ethical standards that employees must work by and comply with for competitiveness and achievement of the organisational goals. Garber (2008) argues that for ethics to become a core factor in the management of organisations, top leaders should be more directive and visible in communicating the ethical principles to the staff members. In the modern organisations, the word ethics is used as a statement that helps prevent the occurrence of moral business problems. However, despite the importance of ethics statement within the organisations, most of the employees and employers still encounter ethical dilemmas. Lewis (2007) defines an ethical dilemma as the situation in which one implements decisions that will benefit them or the business or even both parties and it may be considered unethical. This paper focuses on describing an ethical dilemma case that involves Mitsubishi Motors Corporation.
According to Yan (2016), Mitsubishi Company was involved in a scandal relating to the fuel efficiency tests, where it was reported that the company’s employees were falsifying the fuel consumption rates. Mitsubishi Motors employees perpetuated the case, where more than 470,000 Nissan vehicles that were manufactured by the company were affected (BBC News, 2016). Consequently, most of the Nissan vehicles developed problems in their opration. The president of the company, Tetsuro Aikawa, was unaware of the irregularities that were caused by the employees within the company (BBC News, 2016). Notably, from the decisions that the employees at MMC made with the aim of benefiting the company, one can see that the company failed to comply with all the applicable laws and regulations.
Moreover, reports on the scandal state that the fuel consumption figures that were recorded by MMC were based on running resistance values that were randomly altered and released on the untested resistance values (Corporate 2016). From these conducts, it is evident that MMC did not disseminate the ethical policies within the workplace and the company did not implement regulations that require workers to sign an acknowledgement showing that they understand ethical policies requiring them to work by these principles. Apparently, the ethical dilemma at MMC organisations was encountered through top management’s working relationship with subordinates, customers, competitors, and suppliers.
Justification of Mitsubishi Motors Corporation Ethical Dilemma
The justification of ethical dilemma at Mitsubishi Motors Corporation will be based on the individuals’ factors, organisational factors, ethics codes, and the company’s culture. From the case of Mitsubishi Motors Corporation, it can be noted that that the individuals or employee’s act resulted to an ethical dilemma when they violated an ethical standard for bringing more business into the organisation. From the report presented concerning the company’s performance, it is outlined that the improper conduct concerning fuel consumption occurred because of the company’s General Manager’s ignorance and decisions (Corporate 2016). As such, the general manager in the testing department and the managers within MMC were aware of the fact that the company had difficulties in achieving its target with regards to the fuel consumption target.
The managers did not follow the ethical standards guidelines that portray what is wrong or right, thus making the subsidiary group that was outsourced to work inconsistently and unethically. Further, what made the fuel consumption act more unethical is that fact that the Subsidiary Manger used the wrong method to conduct the freewheel test, which made it harder for the manager to produce the correct estimated values demonstrating the fuel consumption data (Corporate 2016).
From the case of using the wrong method to test for wheel test, this made the Subsidiary Manager present falsification information regarding vehicle fuel consumption. Cummings and Worley (2009) assert that information misrepresentation in organisations produce results that are unreasonable. Misrepresentation for the case of MMC made the Subsidiary Manager and the Mitsubishi’s operation manager work under false pretences; therefore, an ethical dilemma occurred. Misrepresentation is likely to occur when a company outsources specific group to work on special task intended to make the company attain its objectives and become competitive in nature.
The organisational factors such as communication also lead to the rise of the unethical dilemma. The Subsidiary Manager who was assigned to conduct the task of setting fuel consumption rate efficient failed to communicate with the MMC managers on the fact that the company had limited resources and that the time allocated to to carry out the fuel consumption tests was insufficient. Consequently, this made the company to misuse the data that was gathered through the testing processes (Corporate, 2016).
Mitsubishi Motors has for years faced the problem of establishing stronger cultural and ethical values that all employees can identify and agree with. Pitta, Fung, and Isberg (1999) argue that for a business to be accurate in its operations, it needs to understand that culture is one of the factors that affects business ethics. For example, in the start of the twenty-first century, the company had problems to cover for failing brakes, faulty clutches, and the fall of fuel tanks injected within the product they manufacturer (BBC News 2016). As this was a consistent case in the 2000s era, it signifies a culture of misconduct at MMC, especially the one involving the fuel consumption tests. This means that at MMC, the cultural dimension is based on the manager’s assumption and through these assumptions, the employees are unable to constitute ethical standards of the business conduct.
The Ethical Dilemma Solution
Before the implementation of ethical dilemma solutions, it is important for one to consider all the stakeholders who will be affected by the decisions. In the case of Mitsubishi Motors, the major stakeholders are the people who have a vested interest in the ethical actions involving the company. Mitsubishi Motors stakeholders that will be affected by the ethical dilemma include the company’s direct constituencies and other groups affected by the ethical misconduct. Nash (2002) reveals that for organisations to make effective decisions that involve ethical dilemma, all the stakeholders within the line of organisational operation should be considered.
An ethical dilemma that involves many stakeholders requires being solved through a reasoning process that will state the dilemma precisely, and a process that will articulate the issue in a clear manner to provide different solutions and alternatives (Weiss, 2009). Considering the case of Mitsubishi Motors, it will be better for the company to analyse the action causing ethical dilemma from a different perspective. The company will then analyse the consequences of the decision that will be implemented to solve the ethical dilemma case. When an analysis is done, the ethical theories can be incorporated to the scope of an ethical dilemma. Dunham-Taylor and Pinczuk (2015) contend that organisations solve their ethical dilemma through considering the interactions between ethical theories, as this allows the managers to become competent and solve the ethical challenges in the listed professional codes of ethics.
The autonomy theory is among the best idea that Mitsubishi Motors can use to solve the ethical dilemma (Dunham-Taylor & Pinczuk, 2015). Through autonomy theory, an organisation believes that employees are the best decision makers, as the decision they make reflect the benefit and risks of being ethical within the organisation. Examples of autonomy that MMC can use to solve the issues that are making the company be on the verge of ethical dilemma include: informed consent, proof of consent, confidentiality through the organisation, and implementing the accountability laws. In this essence, the Subsidiary Managers and the MMC operation managers will know their level of responsibility regarding decisions and tasks set to enhance the accomplishment of the organisation’s goals. The other theory that MMC can employ to solve the ethical dilemma is the deontological theory. White (2005) proposes that deontological or teleological theory is an ethical approach that is result oriented because it gives managers and the organisation realistic solutions in the quest to end the misconducts bringing the ethical dilemma. The theory will help Mitsubishi Motors to come up with actions that will help the outsourced employees and produces more benefit to organisations actions.
Mitsubishi Motors can as well use virtue ethics theory to solve the matter relating fuels consumption test. The virtue theory is applicable in the resolution of ethical dilemma, as it makes organisations work according to the traits that people displays through their action (Garofalo, Geuras, Lynch, & Lynch, 2001). The use of virtue theory will assist MMC organisation to identify the nature of the ethical dilemma and come up with moral virtue for employees, acquire employee’s potentiality, and later, exhibit working activities in an ethical manner. Finally, MMC need to use egoism theory to identify the best solution for the ethical dilemma concerning fuel consumption test. The egoism theory will give the company the opportunity to influence the thinking and reasoning of the employees before making any workplace decisions. Ahmad, Ansari, and Aafaqi (2005) point out that that egoism theory involves two different dimensions that affect the ethical thinking of a person. Therefore, the theory will make people working MMC to work ethically to facilitate self-interest and organisational interest.
Portfolio of Evidence Content
The Ethical Leadership Debate
This context involves four characters who have used different types of argument with a set of conclusion and some truth about ethical leadership. For me, the most significant aspect in the “Ethical Leadership Debate” is that rational, logic, and deductive arguments that have been used to present the ideas and viewpoint on the topic of ethical leadership. I found, Mike Gustavsson’s argument important as the author has clearly used rational ideas to define ethical leadership and the reasons why it is substantial for organisational leaders to use ethical concepts to produce good behaviours. At the same time, Gustavsson argues that organisations that are seeking the young graduates are not focusing on promoting ethical standards, but focusing on making the employees money oriented by turning them into money seeking leaders. Personally, I feel that Jan Edwards has used his observation on ethical leadership concept to present a rational argument. This has affected my own understanding in the area of ethical leadership and I agree with Edwards’s argument, as it is evident that the young leaders in the organisation are coerced by the company’s owners to increase profitability level so that they can be promoted for their personal benefits. For example, Edward says that last year her company donated 1020 working days to charitable work, but in this year this has changed.
Deshi Chen’s argument has made me become aware of a deductive argument. Chen uses demonstrate how he is dissatisfied with the manner at which educators are teaching the ethical leadership and ethics subject in the institution. Chen’s argument is convincing with a conclusion explaining how he is affected by the strategies that teachers are using to teach ethical topics and the way he is affected by the methods used. If this were to be applied, I would not agree with Chen’s argument, especially when he says that the ethics subject is pointless and it should be removed from his study program. Finally, Mei-Hua Felung’s use a logic argument to present her ideas for the debate regarding ethical leadership. In the argument, Felung points are valuable as she draws a conclusion from the evidence available with the aim of producing a valid argument for the subject. Given the evidence that Felung is using in her argument it can be concluded that, the manager at the International Pharmaceuticals Company is ethical as her perspective in the debate portrays what is right since the manager is not violating any law.
From the argument presented by the four characters, it is apparent that ethical leadership is the form of leadership that is directed by the values and ethical beliefs for the right of other people. An ethical leader is defined as an individual who works with ethical beliefs, thinks about long-term consequences, limitations, and benefits of decisions that they make in an organisation (Mihelič, Lipičnik, & Tekavčič, 2010). From the perspective of each character, it can be concluded that for an organisation to stay true to the ethical path, it should use the code of conduct and corporate governance code. Businesses use the ethical codes or corporate governance code to determine their collective judgement on moral behaviours that may include their response to social responsibilities or charitable work (Walton & Duska, 2007).
Moreover, the argument in the debate presents ethical tensions for the shareholders such as the right of the shareholders and shareholders compensation. The shareholder’s tension lies in the obligation of the ethical leaders, as it is the responsibilities of the leaders in an organisation to bring governance and ethical conduct to the forefront as a precondition of management responsibilities (Francis & Mishra, 2009). Ethical leaders may address the shareholder’s tension cases by implementing significant corporate governance that will brought ethics from the top leaders and constantly become fostered to the shareholders. Francis and Mishra (2009) write that without ethical leadership, there will be no ethical following. However, organisations face countless challenges when it wants to deliver ethical leadership. Some of the challenges include communication and stakeholder’s perspective. These challenges will influence the size of profit that an organisation is making, as leaders and stakeholders will not work with credible and instant information about ethics, hence making the shareholders focus on personal interests.
Appendix B the Seminar Case
The ethical dilemma, in this case, involves Borries as the Account Executive in a medium sized advertising agency in Germany. The aspect of company’s interest causes the ethical dilemma in the case of the Germany Agency company where the company focuses on its operation rather than balancing its interest with employee’s interest. The manager’s decision to tell Borries to cancel his visit to China portrays injustice approach and a decision that is not based on an equitable, fair, and impartial decision that will benefit the both the company and reward Borries and his interest. From the decisions that are made by the organisation, it can be noted that the ethical dilemma case is perpetuated by the organisation manager’s behaviours that are morally wrong. In the case study, one can also learn that the manager for the company brings out the aspect of coercion, which is a major cause of ethical dilemma. In the situation between the German Advertising Agency Company and Borries, the manager forces Borries to postpone his trip to China so that he can participate in the organisation’s intervention.
Ethically, this is wrong because employees within an organisation should have the freedom to make decisions whether to take part in a working program if they are to gain a self-containment for their personal benefits. Cummings and Worley (2009) affirm that coercion in modern business pose ethical dilemmas, as it helps an organisation attain its goals and tend to hurt the interest of the employees. For example, in the case study, Borries state that his decision to respect the organisation’s request was because he wanted to balance what is right for the company and the client by ignoring his situation in the case. From this statement, Borries acted against his interest and everyone else in the organisation, which represents unethical decisions that he made according to benefit the organisation or work for the organisation interests and guidelines.
Decisions and choices that are made during ethical dilemma cases involve solutions that may satisfy or not all the stakeholders (Weiss, 2009). Therefore, to solve the above case, one can use different resolution strategies, but the most effective manner that can be used to resolve Borries and his manager’s case is using normative ethical theories and descriptive framework. McDonald (2015) explains that normative theory is a concept that relates to thought and conduct, what should be done, and what should happen when decisions are made to solve an ethical case. In others words, normative theories are the ethical practices or ideas; that guides the managers in the organisation what to do, so that they can solve an ethical dilemma. For instance, for Borries and the manager at German Advertising Agency Company, ethical egoisms theory can be used to implement actions that will be beneficial to both the company and Borries as the decisions that are made through the theory benefit the individuals with prevailing self-interest.
Lastly, the utilitarianisms theory as the other normative ethical theory will fit the case of Borries and the advertising company. The theory leads to maximum benefit and minimises the harm for all the parties involved in an ethical dilemma (McDonald, 2015). If Borries and the German Company use the descriptive framework to solve the ethical dilemma, this will be essential to both parties. Descriptive framework will allow the manager and the company stakeholders to describe the actual practice and the causes of the ethical dilemma (McDonald, 2015). Here, the organisation will explain to the employees the reasons that made the manager coerce Borries cancel his trip to China and come up with moral development where there will be amicable solutions concerning decisions that caused an ethical dilemma.
Appendix C Interpersonal and Team-Working Skill
Interpersonal and communication skills are the life skills that people use on a daily basis to communicate with others, both in teams and individually. Through working to improve my interpersonal and communication skills, this has made me more successful in both my personal and studying life. For this reason, I have used the interpersonal skills in different cases and mostly in my studies, to work well in a team and be able to communicate effectively with my colleagues and other people.
The interpersonal skills that I have learned in this study make me generate self-awareness, which is an essential part of doing things sensitively with my colleagues or any other team members. I intend to use my interpersonal skills to build my working practice together with my career throughout my learning and working time. The major interpersonal skills that I am reflecting on from this module include problem-solving skills, decision-making skills, and skills that relate to the way of sharing values, opinions, and ideas to other people. On the other hand, the communication skills that the module have given me include giving the feedback to my colleagues, using the correct communication models, and it is necessary to observe other people before communicating the information at hand.
The debates that have been presented in this study have as well given me an idea concerning how people can influence others through communication. For example, in the working place situation, my communication skills will be a major factor that will influence the connection of the company with its clients and employees. To conclude on the issue of interpersonal and communication skills, I can affirm that a person with good interpersonal and communication skills can be perceived as an individual who is optimistic, composed, self-assured, and charismatic. I have gained good interpersonal and communication skills that I can use to commend and appeal other people.
References
Ahmad, N. H., Ansari, M. A., & Aafaqi, R. (2005). Ethical reasoning: The impact of ethical dilemma, egoism and belief in just world. Asian Academy of Malaysian Journal, 10(2), 81-101.
BBC News, (2016). Mitsubishi Motors admits falsifying fuel economy test. Retrieved from: http://www.bbc.com/news/business-36089558
Corporate, (2016). Regarding the report to MLIT concerning improper conduct in fuel consumption testing of vehicles manufactured by Mitsubishi Motors Corporation. Retrieved from: http://www.mitsubishi-motors.com/publish/pressrelease_en/corporate/2016/news/detailg518.html
Cummings, T. G., & Worley, C. G. (2009). Organization development & change. Australia: South-Western/Cengage Learning.
Dunham-Taylor, J., & Pinczuk, J. Z. (2015). Financial management for nurse managers: Merging the heart with the dollar. Burlington, MA: Jones & Bartlett Learning.
Francis, R., & Mishra, M. (2009). Business ethics: An Indian perspective. New Delhi, India Tata McGraw-Hill New Delhi, India Tata McGraw-Hill.
Garber, P. R. (2008). The ethical dilemma. Amherst: HRD.
Garofalo, C., Geuras, D., Lynch, T. D., & Lynch, C. E. (2001). Applying virtue ethics to the challenge of corruption. Innovation Journal, 6(2), 1-13
Lewis, P. S. (2007). Management: Challenges for tomorrow’s leaders. Mason, OH: Thomson/South-Western.
McDonald, G. (2015). Business ethics: A contemporary approach. Port Melbourne: Cambridge University Press.
Mihelič, K., Lipičnik, B., & Tekavčič, M., (2010). Ethical Leadership. International Journals of Management & Information System, 14(5), 31-42.
Nash, R. J. (2002). Real world ethics: Frameworks for educators and human service professionals. New York: Teachers College Press.
Pitta, D. A., Fung, H. G., & Isberg, S. (1999). Ethical issues across cultures: Managing the differing perspectives of China and the USA. Journal of Consumer Marketing, 16(3), 240-256.
Walton, C. C., & Duska, R. F., (2007). Education, leadership, and business ethics: Essays on the work of clarence Walton. Dordrecht: Kluwer Academic Publisher.
Weiss, J. W. (2009). Business ethics: A stakeholders and issues management approach. Australia: South-Western Cengage Learning.
White, T. I. (2005). Resolving an ethical dilemma. Loyola Marymount University. Dissertation. Co-education in Los Angeles, California
Yan, S., (2016). Mitsubishi Motors president quitting amid fuel economy scandal. Retrieved from: http://money.cnn.com/2016/05/18/autos/mitsubishi-executives-resign/index.html