Question

Organizations that are committed to high ethical standards are often faced with difficult and complicated ethical questions. Think about how organizations make decisions and the role of the organization’s ethical values in their decisions. Choose an actual organization that faced a difficult ethical decision. This decision can be limited to one specific act, but it can also be an ongoing policy or plan. Describe the ethical considerations related to the decision. Identify the stakeholders affected by this decision and discuss how the decision affected them. Then evaluate the organization’s actions from an ethical point of view. Explain why the organization has or has not acted ethically and explain what, if anything, the organization should have done differently. This response much be at least 1000 words.

Answer 1

Answer:

Every year there is discussion on namely business ethical issues and in 2015, one of the most discussed topic was the Volkswagen emissions scandal. In summary, Volkswagen was issued a violation notice of the “Clean Air Act” by the United States Environmental Protection Agency. Volkswagen diesels vehicles in America were emitting forty times the nitrogen oxides than permitted by law as they falsified emissions tests. In my opinion, ethical considerations related to Volkswagen’s decision include integrity of company values and relationships, sustainable practices, and environmental impact. I believe that Volkswagen failed to address these considerations and has lead to the erosion of stakeholder trust. These stakeholders include: employees, dealers, shareholders, customers, the environment, management and executives, the Board of Directors, regulators, competing auto manufacturers, and the media. I believe that it begins with the customers who have to deal with product recalls and the costs involved, then to the employees who will be investigated along side with management and executives. This causes a death spiral effect as shareholders’ equities are unrecoverable and the Board is pressured to revitalize corporate governance.  This further impacts other stakeholders, as regulatory bodies are responsible for further investigations and settlements, which causes other automobile manufacturers to become more cognisant with production. In my point of view, it may have been financially attractive to falsify results but it is clear that the decision makers neglected the potential damages it eventually experienced after being found guilty. I do not think that the organization acted ethically as Volkswagen refused to cooperate with the investigation when the US EPA revealed evidence leading to the accusation. In an ethical point of view, Volkswagen should not have falsified the tests and instead spent more time in to R&D to determine the most viable options to meet environmental standards. I recommend Volkswagen to rectify the issue by restructuring its corporate governance and structure to prevent its brand and reputation from further deterioration. In my opinion, ethical standards are an important component of organizations that ultimately drive an organization's success and failure.

Management researchers have identified a broad range of benefits from having a diverse workforce. Consider these benefits and think about the steps that an organization should take in order to realize them. Write an essay identifying some of the important benefits of having a diverse workforce. Discuss some of the challenges organizations often encounter while trying to build a diverse workforce. Then describe some of the actions an organization should take to overcome those challenges, explaining why those actions would be helpful. Provide examples to support your conclusions.

Workplace diversity encompasses many components such as race, gender, age, ethnicity, education, and background. Diversity is a critical aspect of any organization as it is the perception of oneself and others, which fundamentally impacts how effective an organization functions. I believe that for an organization to be successful, they must recognize the need for diversity and be able to deal with issues such as communication, adaptability, and change.

In my opinion, the benefits of diversity in a workplace include: increased productivity, variety of creative and problem solving techniques, increased adaptability, ability to create team synergies, broader service range, and increased market share through diversified customer base. An example where an organization benefited from a diverse workplace is Coca-Cola. The soft drink leader is committed to advancing individuals into executive or influential positions with diverse backgrounds. This is motivating for employees of diverse backgrounds because it provides them with the opportunity to be impactful for the organization, thus driving motivation. Workplace diversity pools a collection of skills and experiences allowing the company to adapt to consumers on a global level. It allows the company to gain market share while building team synergies as new attitudes and innovative ideas are shared amongst the firm. I strongly believe that workplace diversity increases productivity as more individuals work together towards a common goal using varying skills and talents, which helps build loyalty and improves the firm’s retention rates.

Despite all the advantages of diversity, there are challenges that many organizations face when building a diverse workforce. Communication is one of the biggest obstacles, as it comprises of language and cultural barriers – resulting to low morale, weak team dynamic, and confusion amongst employees. Followed by communication is the lack of willingness of change. In any organization, there will always be employees who refuse to acknowledge the social and cultural changes in their environment. As a result, it becomes more difficult to implement policies for workplace diversity. An example of a firm who has failed to implement diversity is Berkshire Hathaway. This company has explicitly stated that diversity is not a factor of consideration when selecting its Board of Directors. Given the fact that top level management fail to promote diversity, in my opinion, is a good indicator that the rest of the organization does not actively promote the importance and use of a diverse workforce.

To combat the challenges of workforce diversity, I recommend organizations to reinforce employee inclusivity. By involving employees in the decision-making and execution of diversity initiates it helps them acknowledge the impact it has on their work. Not only will this provide employees with an opportunity to share their ideas and opinions but also fosters open and equal communication. Another method to overcome these challenges includes promoting diversity in higher positions within the organization. It provides visibility of diversity amongst all levels of the organization. However, this must be supplemented by diversity training to shape and change the diversity policies as needed.