Ethics vs. Profit

857 Words Nov 22nd, 2011 4 Pages
I. Background of the Case
A large American company has chosen the decentralized form of organization and each manager is measured on the basis profit contribution, market penetration, and return on investment. If one fails to meet the objectives established, it is usually results in demotion or dismissal of center management. By means of anonymous survey, managers revealed that they felt pressured to compromise their personal ethical standards to achieve the objectives of the company.

II. Point of View
As a student, and with a subject of Business Ethics I can say that business without ethics, people will set their own moral standards, moral rules and moral principles and will result to a kind of subjective morality in which case,
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In a strongly decentralized organization, it may be more difficult to effectively spread innovative ideas. Someone in one part of the organization may have a traffic idea that would benefit other parts of the organizations.
Opportunities: Decentralization provides lower level managers with vital experiences in making decisions. With that experience, lower level managers would be prepared or trained to make decisions when they are promoted into higher positions.

Threats: In a truly decentralized organization, there may be a lack of coordination among autonomous managers.

VII. Alternative Courses of Action

ACA 1 Conduct strategic planning.
One of the major differences between new and experienced managers is the skill to see the broad perspective, to take the long view on what we want to do and how we're going to do it. One of the best ways to develop this skill is through ongoing experience in strategic planning.
ACA 2 Establish an ethics management program.
Organizations can manage ethics in their workplaces by establishing an ethics management program.
ACA 3 Develop codes of conduct.
Develop an overall corporate code of ethics and then a separate code to guide each of your programs or departments. All staff must see the ethics program being driven by top management.

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