Wednesday, May 6, 2020
Ethics Leadership & Decision Making â⬠Free Samples for Students
Question: Discuss about the Ethics Leadership Decision Making. Answer: Introduction In a perfect world, the business and the employees do a right thing. Unfortunately in the case of a real world, ethical dilemmas are a common phenomenon that occurs frequently. Dilemma is s situation where a person is unable to choose between the moral and immoral conduct. Employees must deal with the pressure in an accurate way that will allow reducing the burden. Employees and the business organizations will face ethical dilemmas on a long run where they have t make a choice between the right and wrong. Each company posses different work culture that affects the results. In such a competitive environment where everyone is running after making profit it has become important not to overlook the unethical business practices. All these business practices are affecting long term profitability. In such a competitive environment the management turn a blind eye to ethical breaches in case if an employee is giving an effective result. The business organization has a mentality to overlook su ch practices if it results into profit. Whistle-blowers feel reluctant to come forward due to fear of being regarded as unreliable person by the organization. Therefore, ethical dilemmas arise due to extreme pressure from the top management in an indirect way. In such a condition an employee forcibly turns towards making unethical profits for the organization. Individual in an organization feel pressurized simply under the financial pressure. If they dont get the rewards or recognition they turn towards a wrongful practice. The unethical practices in the business organization world-wide are putting a question on the credibility. In the recent time the whole world has witnessed unethical practices at workplace. Large sized business organization like Volkswagen, McDonalds, Johnson Johnson, Chipotle, and Samsung has created headlines (Kroc, 2016). The report reviews the ethical dilemma incident that took place at McDonalds in 2016 Rio Olympics. McDonalds is known as the largest toys distributor in the world through their happy meal. Over the years the toys have become sophisticated. Recently in the Olympics the Brand introduced Step-It, a pint-sized step counter for children (Stein, 2016). The watch-like device introduced by McDonalds allowed kids to monitor their daily physical activities. However dozens of users stated that they were developing skin irritation though those watches. This has brought attention of the world media and created a fury in the international market (Queerty, 2011; Meith, 2007). Background The food giant is working in associating with the Olympic committee from past four decades. The association is lucrative for both the Olympic committee and the brand. It is a largest toy distributor by the virtue of selling million of happy meals. Over the year they are becoming more sophisticated. In 2016 Rio Olympic they introduced Step It a pint size step counter for children. The watch like device was used by the children to track their daily activities. The main idea behind the concept was to generate curiosity in kids and to promote getting in shape (The Associated Press, 2016). Soon there was recall due to reported incidence of skin irritation. The chain stopped offering the devices and issues a formal recall. The issue came out as an unethical and moral issue of giving away toys with purchase of food. The incident came out triggering the issue of unethical practicing of selling cheap devices as a lucrative offer. Such incidence brings the attention of media across the world to a grossing issue of unethical practices. Companies like McDonalds are attracting audience especially kids through advertisements and various other promotional activities (Charlebois, 2016). This is not the first kind of incidence, there are many other such incidence registered in past where a fast-food chain in order to increase sales try unethical practices. According to a report the fitness tracker introduced by the company was meant to boost the sale. The happy meal strategy is developed to attract kids through lucrative advertisements. The unethical dilemma arises where the compa ny wants to make profits in a wrong way. The company has been making news headlines due to its unhealthy menu. Parents across the world are affected due to the unhealthy menu (Forbes, 2017). All these business practices followed by McDonalds are affecting long term profitability. In such a competitive environment with multiple food chains the management turns a blind eye to ethical breaches. The multinational food chains are fighting amongst each other for making profits. This has resulted in unethical business practices that that have disturbed the business environment (CBC News, 2016; Tran, Nguyen, Melewar Bodoh, 2015). The report describes the ethical dilemmas in the preview of McDonalds and describes the role of leaders in managing the organizational practices. It is the primary objective under the corporate responsibility where an organization has a duty to motivate its employees to remain productive for the company. In order to remain competitive it is important for a business organization to follow an ethical corporate culture (Joiner, 2016). This will ensure a systematic growth within an organization. The unethical business practices that are highlighted in the report are as follows: Scope Firstly the company has been selling the fit bit like devices watch with the happy meals made of cheap material. These devises caused skin irritation to children. The report highlights the unethical practice on the parameter of ethical theories in order to develop understanding among readers. Secondly the report will highlight the unethical promotional activities used by McDonalds by targeting kids. These unethical business practices are questioned by media various organizations. Kids nag their parents for the happy meal and the toy that is given since the company started selling these meals. The Ethical Problems Although the brand is known across the world for supporting children for life threatening illness, the menu offered by the brand add to diseases like obesity, asthma. There are various unethical activities being carried at McDonalds that is bringing attention of various organizations towards the issue. The Happy Meal Represent almost 10 percent of the total sales of McDonalds. More than 1.5 billion happy meals are sold worldwide. These toys add to the bottom line of the company. A few years ago San Francisco banned the giveaway practice followed by the companies as a competitive strategy. These act a dime strategy in the era of competitive strategy. Social license is an ability to operate with confidence with the stakeholders. It deals with the legitimate activities followed by the organization. The current policies include supply chain transparency, environmental stewardship and gender equality on leadership teams and boards (Tylee, 2016). These resources have added as a critical issue in managing the organization in the challenging industry. It is interesting that happy meal has grabbed attention of many people. In Chile, the fast food chain is not allowed to give free toys with the happy meal. There are few countries where the company is offering books with the happy meals. Most of the toys sold by McDonalds grab Children imagination for a few hours at most (Sheehan, 2013). So giving toys with the happy meals is a waste. The moral obligation resides with the food restaurant chain. What was acceptable a few years ago is not entertained in the current business preview. In 2016 the brand in order to establish itself as a role model for encouraging healthy activities. But there were certain flaws in the design that caused skin abrasions. This led to a sudden recall from all over the world. It was an interesting idea of enticing children across the globe. The StepIt situation brings the attention of whole world on the eth ical and moral dimensions. They are using the forbidden practices that bring the brand under scrutiny. McDonalds toy distribution strategy has again questioned the credibility of the brand in terms of the nutritional value. Consumers are questioning the current practice of the brand in an ineffective way (Santa Carla University, 2014). In order to manage a balance between the ethical practice and revenue the brand need to develop an ineffective brand strategies. Instead of distributing toys it need to derive an effective strategy that focus on driving positive image of the brand. Distribution of toys to kids through happy meal forms to be one of the most effective brand strategies. However the use of unethical practice in business activity is critical for the long term growth (winter, 2011). The recent issue At Rio Olympics has brought attention of many people to the situation. The unethical practice of selling toys of cheap quality is a serious ethical issue. Just to make enormous profit brands are using these activities. McDonalds has come under scrutiny several time due to the lesser nutritional value in their menu. Reports suggest that the meals sold at McDonalds are one of the major reasons of obesity in kids. It is the social responsibility of the brand to develop itself as a healthy brand among kids. The unethical practices are been followed by the company from the long term. They were asked for the lesser nutritional values they are serving through their brand. Many voluntary organizations are raising issues against the happy meals and distribution of toys along with it. This is necessary from the point of view of a global responsibility towards nutritional foods. Selling happy meal and StepIt together is contradictory. The purpose of the devise is to incorporate healthy habits in kids whereas happy meals are responsible for adding unhealthy value in kids. The cheap devise sold by the brand has a purpose to attracting kids as it adds significantly to t he revenue (Nill, 2015). Implication of Ethical theories: Virtue Theory In the situation of ethical dilemma the business organization is striving hard to derive effective results. It has become important to check validity of ethical practices on the ground of virtue. The virtue theory specifies that an individual and a company need to work by expressing good character and courage. McDonalds is honest with the nutritional value and the variety of products they are providing to their customer. Although in case of the StepIt devise they didnt shared the negative about the brand. In terms of Virtue the brand fails to meet the purpose with the customers. It is important in terms of ethical value and standard to make customers aware about the fact attached with the product. There function as a global organization is to develop healthy food habits in the customers (Broad, 2014). There is a growing necessity to improve the overall purpose which is relevant to the ethical values. By virtue brand fail the purpose which states the needs and requirements for generat ing effectual habits in consumers. From the point of view of Virtue Theory the brand is serving unethically by selling Fit Bit Watches, although they were somehow aware about the related consequences (Hoffman, Frederick Schwartz, 2014). Kantianism This theory states that one should do the right thing in order to develop healthy habits in consistency with the objective of the company. One part of the theory is to act in consistent with the actions. The theory focus on making rational decision in the favor of the people associated with it. Under the preview of current situation it is necessary that the company who profess ethic and values. According to the concept the company need to behave rationally not just by attracting kids but should act ethically in order to reduce such incidence. The issue came out as an unethical and moral issue of giving away toys with purchase of food (Weebly, 2017). Under this theory it is important for an individual to develop effective activities that allow in achieving goals ethically. In such a competitive environment with multiple food chains the management turns a blind eye to ethical breaches. As per Kantianism Theory the act was ethical from the point of view of company but selling objects in the market that can cause potential harm to kids. This is important from the point of view of a brand that is working from a very long time. Such issues need to be given importance for the purpose of future profitability (Vaughn, 2015). Role of a leader in managing ethical dilemma Managers hold an ethical position in an organization and are responsible for helping others to do well. They play an important role in implementing ethical standard and aligning the organization with the standards. The position of authority is accountable for the ethical code of conduct for those who report it to them. They have a responsibility to work ethically in accordance with the expectations of others. They have a duty to respond to others by minimum impact of ethical violation. They are responsible for creating changes in an ethical way by guiding organization to work efficiently. It is the fiduciary authority of the managers to act in goodwill. They are required to follow certain code of conduct in the goodwill of the company (Gibison, 2017). In case of the issue mentioned in the report above it is the duty of the leader to guide employees to work ethically. Employees under extreme pressure tend to work unethically. It is thereby important for the company like McDonalds to lead an example for rest of the generation. This will allow the brand to grow effectively. It is the duty of the leader to notice the error that is recognized during an act. If necessary it is the primary duty of a manager to work not only in the goodwill of the company but also in a favor of the society. There are certain incidences where a company is making a continuous mistake through unethical business practice. Being a market leader in a fast food chain it is there primary duty to focus efficiently by looking at various activities. The company just to make enormous profit cannot use unethical business practices. This will thereby affect the business and various other -functions on the long run. Companies like McDonalds are attracting audience espec ially kids through advertisements and various other promotional activities. They have a responsibility to act ethically in the favor of the whole society. The overall purpose of a global company is to meet corporate social responsibility in an effective way (Press Association, 2016). A manger holds an important position that makes them accountable for ethical reasons. They need to fulfill an obligation towards the organization as well by monitoring ethical practices. McDonalds cannot get away with the responsibility towards the society. It is therefore important from the part of the organization to check effective measures to be taken in order manage the tasks. The incident in the past has triggered issues in the organization calling for effective measures. In a competitive economy it is essential to find out effective measures that will allow an organization to grow effectively. A leader has to set an example for rest of the society. This is only possible if they develop effective employees. This will let them work more efficiently (Carr and Steutel, 2005). Ethical dilemma generally occurs when an employee try to push himself in an unethical way. This is an important aspect in terms of managing the organization in an effective way. This is necessary for a business organization working globally (Marczewski, 2016). The incident that happened at Rio created a fury in the international market. The credibility of the brand was questioned by the whole world. A leader needs to set an example for the whole world by working in an effective way (Gorey, 2016). Recommendations It is recommended that the brand need to develop an effective market strategies in order to attain systematic growth. It is important for an Organization to develop effective ethical practices at workplace. Being a global organization it is important for McDonalds to develop effective ethical practices that allow them to set an example for the other fast food restaurants. The company is currently targeting kids through lucrative practices. This is unethical from the point of view of a global company. It is necessary for them to develop effective measures in order to attract customers ethically. The Rio Olympics incidence has brought the attention of people across the organization. Thereby it is recommended that the company need to offer lucrative service for the future venture. It is only possible if the business organization is ready to develop effective goals on a long run. It is important to notice that the organization working globally. Consequently from past 4 decades it is work ing as their official partner. It has to develop healthy food habits in the customers. There is a growing necessity to improve the overall purpose which is relevant to the ethical values. Conclusion To conclude it is important for a global organization to follow ethical values on a regular way. It has to follow the norms and policies not only mentioned in their charter bur also need to follow the measures that are made important as a part of their CSR. The report primarily focuses on the ethical dilemma and the theories that form an important part for an organization. Employees and the business organizations will face ethical dilemmas on a long run where they have t make a choice between the right and wrong. The report is based on the unethical practice professed by McDonalds during Rio Olympic. They sold the Fit Bit devices with the happy meals in order to increase sale. The device caused skin irritation to kids and the matter created news headlines brining the unethical practices of McDonalds under scrutiny. 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