business ethics utar assignment

7/26/2019 Business Ethics UTAR assignment

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UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

FACULTY OF BUSINESS AND FINANCE

(Academic Year 20!"20#)

Oc$%&er 20! Seme'$er

Bachelor of Business Administration (Hons)

Bachelor of Marketing (Hons)Bachelor of Business Administration (Hons) EntrepreneurshipBachelor of Commerce (Hons) Accounting

Bachelor of Finance (Hons)

A''ime$ C%*er S+ee$

MARKIN, SCHEME FOR ,ROU- ASSI,NMENT

N%. A''e''me$ Cri$eriaMar/'

A%ca$i%

Mar/'

A1arded

1 Introduction 10 marks

Contents 10 marks

! "ecommendation 10 marks

# $iscussion 10 marks

% Conclusion % marks

& Format % marks

T%$a %0 marks

Comments'

ame of Marker '

ignature of Marker '

$ate '

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1 Introduction

1*1 Introduction of Ethical $ilemma

1* "elated Issues on Ethical $ilemma

1*! +he Importance of Ethical $ilemma to +he ociet, or -rgani.ations

1/

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!/#

Contents

*1 "eie the topic ith literature support

* "eleant +heories E2plaining the "elationship of +he Concepts

*! Comprehensiel, $iscuss the Concepts Inherited in Ethical $ilemma

*# E2plain the "elationships Among the Concepts

*% E2plain the Concepts From the 3s,chological and ociological Approach

*& +o $ifferent +heories E2plaining the "elationship Beteen4Among the

Concepts

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%/&

&/5

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6/11

11/1!

! 3art C' $iscussion

!*1 7,ing

!* Fraud

!*! $iscrimination!*# e2ual Harassment

1!/1#

1%/1&

18/1516/1

# 3art $' "ecommendation

#*1 Implications to societ,9 organi.ations9 and management

#* :ustif, the recommendations ith literature supports

1/!

#/8

% Conclusion 8/5

"eferences A1/A&

. I$r%d3c$i% % E$+ica Diemma

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Ethics is referred to an indiidual;s moral emplo,ees must decide hat the,

think is the right course of action (Cad=ur,9 n*d*)* +his ma, inole re


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sometimes9 hen take a cigarette =reak9 some orkers ill hold an off/the/cuff outdoor meeting*

+hat is not onl, unhealth, for the other people attending9 it also gies the smoker another

cigarette =reak effectiel,* +he most people use a fault, model of unethical =ehaiour =ecause

the, think that =adG people do =adG things (:ohn9 01!)* But in man, cases9 the rong is made

=, the good people such as good leaders9 good managers and good emplo,ees* For e2ample9 the,

fail to recogni.e that the pro=lem the, are confronting has an ethical component and is not solel,

a marketing or finance or other kind of pro=lem (:ohn9 01!)* +he, are lack the a=ilit, to sole

the pro=lem from an ethical perspectie* o that9 the goal of ethics training is not to change

peoples ethics and it is to enhance peoples sensitiit, to ethical issues and proide them ith

tools for resoling ethical dilemmas effectiel, (:ohn9 01!)*

+he ethical dilemma is een more difficult to decide =ecause there is not a rongG

anser* +he toughest ethical dilemmas in the orkplace occur hen to or more competing

alternaties are present9 each haing its on set of ethical alues9 the choice of hich ala,s

offers a less/than/ideal solution (Chris9 01!)* +his kind of situation ill happen =ecause people

often caes in to faoura=le outcomes against each other hich is fairness ersus compassion

(Chris9 01!)* +he toughest ethical challenge to naigate is rightG ersus rightG* A difficult

ethical dilemma decision is not necessaril, the same as a decision that is eas, to make* ou ma,

=e faced ith a situation here it is er, not clear hat ould =e the right or rong thing to do*

For e2ample a=out the ethical rule hich is l,ing* If ,ou sa,9 ;I kno it is rong to tell a lie9 =ut I

allo m,self to tell lies heneer it suits me9; then this is the clearest possi=le eidence that ,ou

don;t reall, =eliee it is rong to tell a lie (?eoffre,9 005)*

For e2ample9 ,ou are a ne officer ho need to assign =, a training officer for the first

si2 months of ,our emplo,ment* +he training officer is a close friend ith three Assistant Chief

of 3olice and the =rother/in/la of the Datch Commander* In one da,9 ,ou respond to a =urglar,

call at a local conenience store at '!0 am* +he manager has =een notified* ou are needed to

ait !0/!% minutes for his arrial* 7ater9 ,ou o=sere ,our partner take a soda9 cand, and a =ag

of chips* He consumes the soda and chips* Dhen the manager arries9 the to of ,ou depart from

the store* In the e2ample9 e can learn that some of the companies like to place their emplo,ees

in impossi=le positions* If a superisor demands that ,ou do something ,ou find unethical or

een illegal9 such as fa=ricating financial data or iolating federal emplo,ment las9 ,ou hae

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options (:ill9 01)* If these kind of situation happened9 ,ou can make reports to the goernance

=odies* If u can aoid it9 do not @uit the organi.ation9 =ut after ,ou make reports9 ,ou ant to

prepare to get fired and ,ou ma, find another


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In addition9 di'crimia$i% ala,s happens in the orkplace ithin our societ, toda,

due to negatie practice of ideas in our surrounding (imon9 n*d)* +he main factor that initiates

discrimination to arise is conscious or unconscious action hich =rings positie or aderse

effects toards an indiidual to act upon something* It can =e in the =asics of religion9 se29

marital status9 se2ual orientation9 colour9 race9 age or an, other status*

Se63a +ara''me$is also one of the relations hich knon as an, unanted se2ual

=ehaiour toards an indiidual =, another (-*C* Ferrell9 010)* It is a form of se2

discrimination hich iolates certain las* It can also occur in a er=al9 isual9 ph,sical or

ritten form hich the ictim feels unpleasant and find it offensie =, =eing harass =ecause of

their se2ualit,* +herefore9 people in different culture ill hae different perceptions of actions

that considers as harassment that arise in the issue of ethics dilemma*

Furthermore9 &ri&er5can also =e a related issue of =usiness ethics =ecause it can =e


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soled first and ill not make an, peoples angr,* +hus9 the preparation is important to identif,

the ethical dilemma*

-ne sign is that ;ethical; dilemmas touch more heail, than others on matters of principle

(3ersonal Finance ociet,9 01#)* ome of the e2amples of principles are impartialit,9

accounta=ilit,9 fairness9 confidence and openness* +hese e2amples ma, =e faced in the conflict*

For e2ample9 histle/=loers often face a conflict =eteen the principle of truth and the

principle of lo,alt,9 hen eighing up hether to report a concern(3ersonal Finance ociet,9

01#)* 3eople make a =ad ethical choice ill influence pu=lic relations sta, in a nightmare

orld* For e2ample9 some companies operate ith destro, the air or atmosphere to achiee their

goals and the to2ic materials hich pollute the enironment ork against greenG societal

aluation* Man, peoples in the orld are er, selfish9 =ecause the, ant to achiee their goal

and career9 the, do not think a=out other peoples*

In the perfect orld9 the compan,s =usinesses and their emplo,ees ala,s do the right

things* But9 noada,s9 in this real orld9 man, peoples face in the ethical dilemma at the

orkplace* An ethical dilemma is a pro=lem here a person has to choose =eteen a moral and

an immoral act (+err,9 n*d*)* +he emplo,ees in the compan, ill ala,s face man, ethical

dilemmas in their careers9 so that the compan, should proide some training and gie some

information a=out ho to sole the @uestion for them to help them in their decision making* In

ethical dilemma9 people ill make unethical decision9 this kind of pro=lem ill make the

organi.ation fall to an unsta=le slope hich concerns the legalit, of compan, =usinesses* If an,

emplo,ees in the organi.ation found in guilt, or the management of the organi.ation manage in

guilt, a,s9 the punishment ill =e seered such as9 the high legal fees and fines need to pa, and


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-ar$ B9 C%$e$'

Re*ie1 $+e $%7ic 1i$+ i$era$3re

Ethical dilemma can =e defined as a circumstance that fre@uentl, inoles comple2 and

conflicting principles of ethical =ehaiour as there is no clear guideline on ho to act and

respond to a particular pro=lem (oor Ha.lina Ahmad9 Mahfoo. A* Ansari L "ehana Aafa@i9

00%)* Furthermore9 ethical conflicts are unaoida=le hen an indiidual;s personal =usiness

ethics is not consistent ith that of the corporation (oor Ha.lina Ahmad et al*9 00%)* It is

essential for an indiidual to identif, the presence of ethical dilemma as it acts as catal,st for the

decision making process (oor Ha.lina Ahmad et al*9 00%)* +here ill =e a great danger in an

organi.ation if an ethical dilemma is failed to acknoledge*

+he ethical decision making process is denoted =, a four/component model esta=lished =, "est9

hich are recogni.e an ethical dilemma9 formulate a


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"ecogni.ing an ethical dilemma is crucial as a person ill =ecome aare that he or she is

fronting an ethical pro=lem in the orkplace (alentine et al*9 01!)* In order to recogni.e the

e2istence of an ethical dilemma9 there are some criteria depicting the ethical dilemma situations*

Firstl,9 the fairness components pla, an important role in management decisions in ethical

dilemma situations (7itschka9 uske L Brandteiner9 011)* econdl,9 the commitment as the

=ehaiour that sticks to the rules een if personal elfare is adersel, affected (7itschka et al*9

011)* +hirdl,9 the reciprocal altruism acts as a cooperatie =ehaiour that anticipates a

reciprocal =eneficial act from other persons (7itschka et al*9 011)* All of the three elements hae

=een applied =, the managers hen considering the ethical dilemma in the orkplace*

After recogni.ing an ethical dilemma9 a person ill formulate the


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As a conclusion9 the organi.ation should hope to see the incremental improements in orkers

a=ilit, to make the ethical decisions through deeloping a stronger ethical culture so that it can

lead to a more ethical orkplace (alentine et al*9 01!)*

2 C%m7re+e'i*e5 di'c3'' $+e c%ce7$' i+eri$ed i $+e $%7ic.

Ethical issues are confusing and multifaceted and not onl, =lack and hite (Delker L Berardino9

01!)* "ecogni.ing an ethical issue or condition is necessar, to ethical decision making =ecause

a person =ecomes conscious that he or she is facing an ethical dilemma in the orkplace

(alentine9 am9 Hollingorth L Hall9 01!)* 7,ing9 se2ual harassment9 discrimination and

fraud are the four ethical dilemmas that ala,s happen in the orld toda,*

L5irelates to distort the truth and philosophers and theologians hae categorised l,ing as

unethical and immoral =ehaiour 7,ing is er, common in dail, life and it is difficult to resole

ith its occurrence (7eine L cheit.er9 01#)* 3eople not onl, lie for on =enefits =ut also

others people =enefits* +here are three t,pes of l,ing hich are


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harassment in the orkplace poses something of an ethical dilemma for career guidance practice

=ecause it is identified that a=out half of all orking omen are likel, to =e ictims at some

stage of their emplo,ment (Bimrose9 00#)* e2ual harassment is a t,pe of se2 discrimination

and it defined as an, repetitie9 unanted =ehaiour of se2ual nature perpetrated upon one

indiidual =, another (Ferrell et al*9 010)* +he most common t,pes of se2ual harassment are in

er=al t,pe hich include se2ual


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fines9 imprisonment or =oth (Ferrell et al*9 010)* 3ressure9 opportunities and


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+he reasons for people to conduct fraudulent actions are due to the pressures to pu=lish9 achiee

career promotion9 the lure of reputation and mone, (Jarc. et al*9 011)* Fraud and deceit in

=usiness can isi=le itself in a fe a,s of affecting all =usiness disciplines populations and

countries* As a =usiness communit,9 e should ala,s keep in mind that all t,pes of fraud and

deceit can ruin the reputation in the e,es of the pu=lic and practice good ethical =ehaiour9

honest, in our life*

"esearchers argue that se2 testing is a sensi=le (though imperfect) a, to assure the safet,9

competitieness and fairness of omen sport9 =, accuratel,G arranging competitors into suita=le

categories according to conention9 science and humanitarian alues* Although there is no

gender discrimination hae =een recogni.ed through se2 testing in sport9 a num=er of selected

omen hae =een unfairl, dis@ualified from competition since se2 test ere formall, introduced

into international games9 ith conse@uences that e2tend aa, from their sporting career (Dells

L $arnell9 01#)* +esting has caused harms to omen athletes* +herefore9 an, accommodations

are attempted through priac, clauses and integration polic, in se2 testing policies =ased in the

adantage thesisG assumptions of fairness appears to receie main concern oer the impact of

discrimination* Conse@uentl,9 critics emphasi.e that se2 testing participates in a tradition

=iological concept of se2 difference actuall, help to construct and disseminate social hierarchies

and stereot,pes for the gender discrimination and fairness (Dells et al*9 01#).

2.! E67ai $+e c%ce7$' r%m $+e 7'5c+%%ica: '%ci%%ica %r 7+i%'%7+ica a77r%ac+.

+he simplest definition for 7'5c+%%5is that it is the stud, of the humans mind and =ehaiour

(Dhat is ps,cholog,9 n*d*)* +he applications of ps,cholog, comprise the mental health treatment9

performance enhancement9 self/help9 ergonomics9 and man, other areas that affecting health and

dail, life (Dhat is ps,cholog,9 n*d*)* It is @uite challenging to capture eer,thing that ps,cholog,

coers in


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Dh, can e sa, that ethical dilemma can =e originated from ps,chological approach According

to 7ai and Ba=cock (01)9 Asian Americans hae =een largel, ignored in the orkplace

discrimination* It is definitel, er, ital for haing a set of skills needed in the


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to protect people from harm (7eine L cheit.er9 01#)* +hat is h, e alue


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conse@uences of all possi=le alternaties and choose the one that result in the greatest =enefit

(Ferrell et al*9 010)*

e2ual harassment in the orkplace has =ecome the focus of much academic researches acrossdisciplines and also much media attention (Firestone9 Miller L Harris9 011)* +he research

indicates that the se2ual harassment is a idespread phenomenon ith arious negatie impacts

(Firestone et al*9 011)* More than half of the harassed orkers stated the negatie impacts for

their personal ell/=eing> a third of the harassed orkers reported the negatie conse@uences for

their ork situation including resignation9 tasks reduction9 change of orkplace and short of

orking condition> and the rest of them said the negatie implications for the ork satisfaction9

orking climate and motiation ($ragoO9 n*d*)* ince there are man, negatie conse@uences

contri=uted from the se2ual harassment9 =ased on the utilitarianism theor,9 the greatest utilit, to

the societ, ill lead to forcing the organi.ations to preent se2ual harassment in orkplace*

+herefore9 the management of a compan, is responsi=le to esta=lish a rigorous standard and

polic, regarding the se2ual harassment on the


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that e@ual respect must =e gien to all persons (Ferrell et al*9 010)* $eontologists consider that

e should not inole in committing fraud in order to ma2imi.e the profit* Hoeer9 utilitarian

consider an action is accepta=le if the action can create greater =enefit* For e2ample9 researcher

found out that hite/collar criminals claimed that the, felt reasona=le in committing fraud in

order to sae their compan,9 the emplo,ees


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-ar$ C (Di'c3''i%)

4. L5i

Most of the people ala,s think that l,ing is =ad* For centuries9 philosophers and theologians

hae characteri.ed l,ing as unethical (7eine L cheit.er9 01#)* imilarl,9 ethics scholars

hae argued that the honest, is a critical component of moral character and it is also a

fundamental aspect of the ethical =ehaior* ome lies are perceied to =e more ethical than an

honest statement* 3rosocial lies are intended to =enefit the target and hae small or su=stantial

conse@uences (7eine L cheit.er9 01#)* For e2ample parents ma, tell prosocial lies a=out

their marriage to protect their children9 the goernment authorities ma, tell a prosocial lie to the

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citi.ens9 and hoping to protect them and doctors ma, tell a prosocial lie a=out the seerit, of a

prognosis in order to help their patient (7eine L cheit.er9 01#)*

+here as a famous case stud, hich happened in ordstrom and it as a=out a clerk

helping an elderl, oman* +his oman came to ordstrom for returning a set of ne tires hich

ere for her hus=ands automo=ile* he ished to return them =ecause her hus=and as recentl,

deceased* nfortunatel,9 there is no automotie department in ordstrom* B, seeing ho

distressed this oman as9 the ordstrom clerk decided to take the tires =ack and reim=ursed the

oman out of his or her pocket* In this e2ample9 l,ing as used as a demonstration of the

organi.ational improisation and resulted positie outcome for the customer (Cona,9 01#)* De

can argue that there is still a good side of l,ing* 3rosocial l,ing is an ethicall, am=ialent act9 it

signals care for others =ut also disregard for the moral principle of honest, (7eine L

cheit.er9 01#)* +he ma


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the ?reat 7eap forard =ut persisted in their polic, and imposed a s,stem of deception* $ue to

lack of free de=ate hich a=le to stimulate the action9 10 millions of people died of the staration

in ,ear 16%6 to ,ear 16&19 it as hidden for ,ears* +here are good and =ad side of l,ing*

4.2 Se63a Hara''me$

e2ual Harassment reflects the une@ual poer relations =eteen the omen and men in

the societ, (g L -thman9 00)* It can =e said as a serious infringement on the right of the

orkers ithin a compan, and the ictims are forced to deal ith some unpleasant and

humiliating e2perience hich might cause in emotional and also ps,chological trauma* Besides

that9 it can create an offensie and hostile orking enironment for those orkers hich impede

the productiit, and also the social interaction ithin the compan, ("amsaroop L 3arumasur9

008)* In order to sho that the se2ual harassment is actuall, occurred9 the complaining parties

must sho that the ph,sical conduct is unelcome* Most of the se2ual cases inole omen

ith the loer income* +hose ictims might e2perience some kinds of emotional reaction

heneer the se2ual harassment occurred* e2ual harassment cases ala,s reduce the

productiit, and also the teamork and the idea generation hich impact on the compan,s

effectieness ("amsaroop L 3arumasur9 008)*

Moreoer9 most of the companies and goernment ala,s cancel the contracts ith those

companies ho hae se2ual harassment pro=lem =ecause such pro=lem might reduce the

reputation of those companies ho cooperate ith them and the, are doing this for discouraging

se2ual harassment ("amsaroop L 3arumasur9 008)* ome omen argued that se2ual

harassment consists of the use of male se2ualit, to e2ercise and to reinforce the poer of those

men and to control oer the omen* +he, said that it is a se2ual iolence and gender

discrimination (g L -thman9 00)*

In Israel9 the la prohi=its intimidation or retaliation that accommodates se2ual

harassment9 referred to pre


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stress leels and also their mental health (7unen=urg9 010)* +hose harassed ictims also might

=e more likel, to leae the compan,* Besides that9 the, also tend to hae some negatie attitudes

toard their superisors or coorker (7unen=urg9 010)*

Hoeer9 a trul, consensual se2ual relationship or the se2ual conducts ma, not =e

considered as unelcome if it is participated illingl, and hence it is not a se2ual harassment*

De can argue that it is an ethical =ehaiour* In fact se2ual harassment has =een misconceied =,

=oth omen and men as simpl, a harmless e2pression of an indiiduals =asicall, se2ual nature

to others and hence some omen are flattered =, se2ual attention and ould flirt =ack (g L

-thman9 00)* According to =iological model9 men and omen are attracted to each other and

the, ould like to relate to each other in se2uall, oriented manners in the orkplace (g L

-thman9 00)* Dith this e can argue that it is


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+he utilitarian argument against discrimination maintains that societ,;s productiit,

ill =e highest hen


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or are targeted for la,offs* +hus9 although the influence ma, =e su=tle9 the cause

ma, =e age stereot,pes and the effect9 discrimination*

Hoeer9 these same indiiduals implicitl, har=or negatie emotions and cognitions

toard omen (or minorities)9 driing them to discriminate in inconspicuous or rationali.a=le

a,s (Cortina et al*9 01!)*

tilitarianism on the other hand has also its upsets as9 giing reards9 salaries and


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compensation9 the o=


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-ar$ D9 Rec%mmeda$i%'

!. Im7ica$i%' $% '%cie$5: %rai8a$i%': ad maaeme$.

In societ,9 people do not ala,s lie een though l,ing might increase monetar, pa,offs*

(Erat* 9 01!)* Hoeer9 people might hire someone to lie for them to allo themseles aoid

from the disutilit, of l,ing* (Erat* 9 01!) According to Erat* 9 01!9 the possi=ilit, of

delegating to an agent is depending on the incenties* In the results shos that omen hae

higher possi=ilit, to delegate an agent as compared to men* (Erat* 9 01!)* ome ma, lie a=out

good deeds =ecause it seems to =e a self/defensie strateg, as this strateg, might decrease ones

ulnera=ilit, of social distrust* +he research recommended that =, emplo,ing the standard

principal/agent frameork and e2plains the delegation from differences in information9 a=ilit,9

and cost or from the credi=ilit, =ecause of handing off the decision/making authorit,* +here is

one model hich is the principal select an appropriate incentie scheme and delegates it to agent

and conse@uentl, gain credi=ilit,* (Fershtman9 C*9 :udd9 J* 7*9 L Jalai9 E* 1661) For e2ample9

people might =e aerse to hire an illegal immigrant to help them doing things for less than the

minimum ages9 this doesnt mean that the people choose to hire onl, legal orkers* In this

situation9 that people hae an alternatie course of action to hire an agentG and act on that

people =ehalf ith the possi=ilit, of this person might engage in some actions that he ould not

do*

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In the =usiness organi.ation9 it is a form of human communit, contri=uted to commerce*

(Dallace* :9 000) According to Dallace* :9 0009 people ma, perceie to ork in a =usiness

=ased on lies and ithout =eing distur=ed =, it* ome people might tolerate to an enironment in

hich the emplo,ees are routinel, lied to if the emplo,ee is the t,pe of a=le to thrie in an

enironment* Hoeer9 some emplo,ee might resign due to lack of integrit, =ecause there is an

incentie for eer,one to =e honest in =usiness* An organi.ation ho is lack of integrit, ma,

lead to man, pro=lems for e2amples hen customers hae discoered the, hae =een laid9 the,

ill not return to the organi.ation* Besides9 emplo,ees ho hae =een laid to ill leae the

organi.ation too and this cause the organi.ation hard to recruit ne emplo,ee*

For the management9 leader is like a flag* (Dallace* :9 000) 7eader needs to hae good

ethical alues for their emplo,ee in order to salute him* +he honest, of the leader is the

cornerstone of the structure* o9 if the emplo,ees found out that the, are =eing laid9 the, ill

reduce the confident leel toards the leaders*

e2t9 ith the technolog, adancement9 stakeholders are a=le to look through and get to

kno the situation of compan,* Hoeer9 some listed compan, might disclose less information

a=out ho their =usiness is =eing conducted for instances the policies and situation in the

compan, to satisficed the inestors and stakeholders* (u* +L Chen* :9 006)*Hence9 hat are

the conse@uences A compan, ho is lacking of transparenc,9 the stakeholders or inestors

might not ant to trust the compan,* takeholders ill uncertain that hether the compan, has

alread, taken into account as ell as taken preentie steps on fraud and corruption* According

to De=le, (001)9 ?oernment and shareholders groups are asking for accounta=ilit, and

transparenc, on the part of multinational corporations =, giing the potential of high profile

incidents that poor corporate =ehaior ma, lead toG*

Apart from l,ing and fraud9 as far as historical records sho9 the more ciili.ed a

societ, =ecomes the more su=tle the stigma and discrimination getsG* ("oseal* D9 n*d*)$iscrimination is still happening in the societ,* +he conse@uences of discrimination in societ,

are o=iousl, reflecting on race9 religion and disa=le discrimination* oada,s9 one of the main

reasons cause iolence is race discrimination* For e2ample9 hite people ala,s fight ith =lack

people due to the, ere discriminated* 3eople might not understand a=out others culture hich

ma, cause them to look don on others* Furthermore9 discrimination in religion might endanger

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the peacefulness of the societ,* Dhen there is a conflict =eteen different religions9 this ma,

easil, lead to a ar*

-n the other hand9 discrimination also happens in organi.ation and management as ell*

$iscrimination in the organi.ation such as age9 gender9 disa=ilities9 se29 race and so forth*

$iscrimination in the organi.ation can hae serious conse@uences and effect toards the

offender and also the ictim* (7isa* F9 n*d*) Dhen the discrimination in the organi.ation has

spread9 the morale ill decrease9 trust =eteen each other ill =e =roken9 and significantl, the

compan, =ottom line ill =e =roken* Besides that9 ?oogle Compan, has faced serious pro=lem

in discrimination of gender in their compan,* (Cla=urn* +9 01#) Dhen an emplo,ee is =eing

discriminated9 he might feel helpless and an2iet, as ell as lack of interest in


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ictims =ut also the o=serers ho ala,s @uit the


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unethical =ehaior9 the, should also reard their emplo,ees ho hae done in ethical =ehaior

in order to encourage them to continue doing ethical =ehaiors*

Hoeer9 leader needs to =e aare of the appropriateness of punishment standard =,

giing punishment according to the leel of unethical =ehaiors in order to sho fairness among

the emplo,ees =ecause a too harsh punishment of a small unethical =ehaior ill lead to reduce

the confidence of emplo,ee in doing orks that ma, =ring =enefit to the organi.ation in future*

In short9 an organi.ation should hae a standard of ethical =ehaior set =, the ethical leader to

assure that their emplo,ees are clearl, understand the standard hich is e2pected =, the

organi.ation* +hrough this9 the emplo,ees potential performance ill =e ma2imi.ed*

Fra3d

"ecentl,9 pu=lic has largel, captured their attention to the cases of fraud* (CBIAED9

008) According to the American Institute of Certified 3u=lic Accountants (AIC3A)9 small and

midsi.e companies suffer a greater share of fraud losses than do the largest companiesG*

(CBIAED9 008) o9 hat are the recommendations to preent this issue

Firstl,9 compan, should re@uire a =ackground check on all emplo,ees* According to

3"-+EC+ -" C-M3A9 01!9 =ackground report is a great a, to protect the @ualit, and

culture of =usiness* +he manager should check for an, inconsistencies =eteen the application

and the report of the =ackground* For e2ample9 a persons dishonest, might proe detrimental to

the =usiness* o9 the manager should look into deeper the persons =ackground or consider

another person* +he manager must kno ho the, are hiring as the manager can take time to call

the preious emplo,ers* (3"-+EC+ -" C-M3A9 01!)

Besides that9 the manager should actiel, inole in checking compan,s finances*

(3"-+EC+ -" C-M3A9 01!) +he, hae the o=ligation to kno the cost and e2penses

run =, the compan,* In detail9 manager need to recogni.e an, costs seem too high or the profitseem too lo for the compan,s sales olume* egregation of duties is also ital in a compan,*

Eer, emplo,ee should hae their on ork to preent them manipulate others ork easil,*

Furthermore9 according to (3"-+EC+ -" C-M3A9 01!) the compan, should

implement internal controls =, asking some @uestions in order to ealuate and get to kno

29


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current internal policies* For e2ample9 the manager needs to ask a=out is there an, =lank checks

as =eing left out Is there an, suspicious people hae access to ,our signature stamp 7ast =ut

not least9 in order to raise the aareness a=out fraud emplo,ees should =e educated a=out fraud*

(3"-+EC+ -" C-M3A9 01!)* +he compan, can hae fraud aareness training in the

compan, to assist the emplo,ees kno a=out the su=tle and not so su=tle instances of fraud* In

short9 emplo,ee ma, =e a=le to keep this aareness at the forefront and the, ill also get to

kno the conse@uences of fraud*

Se63a Hara''me$

In order to reduce se2ual harassment issue in the orkplace9 leaders are automaticall,

pla,s an important role and perceie ethical =ehaior* +herefore9 the emplo,er should also

implement positie duties toards the emplo,ees* According to (Dright* :9 010)9 Australia as

introduced a model here=, if an emplo,ee is se2uall, harassed in the orkplace9 the

responsi=ilit, is lies ith the emplo,er =ecause the emplo,er holds a positie dut, to preent this

issues from happening* In detail9 emplo,er has the responsi=ilit, to update the orkplace

policies relating to se2ual harassment* Besides that9 emplo,er needs to organi.e a regular staff

meeting to remind emplo,ee the compan, polic, that se2ual harassment is prohi=ited* If

emplo,ee =reaches the orkplace polic,9 the emplo,ee should e2pect to =e disciplined =, his4her

emplo,er*

Furthermore9 the leader should also implement other measures to reduce the risk factors

of omen orkers* (Ismail* M* *9 Chee* 7* J*9 L Bee9 C* F9 008)* For instances9 emplo,er ma,

rearrange the ork area to let the omen orkers ork in the full ie of other emplo,ees*

Emplo,ees also encouraged to dress properl, at the orkplace* +he introduction of legall,

=inding standards and positie duties for emplo,ers is a positie step forardG* (Dright* :9

010)* +hrough this step9 it can encourage the emplo,ee to hae self/regulation in order to

achiee social change in the orkplace* (Dright* :9 010) Hoeer9 the author also proposed thatthe duties must =e in clear and unam=iguous term9 the, should =e goerned as ell in order to

preent emplo,ers not fail in their responsi=ilit, to preent se2ual harassment*

-n the other hand9 Mala,sian goernment has officiall, launched the Code of 3ractice on

the 3reention and Eradication of e2ual Harassment in 1666 in order to deal ith the se2ual

30


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harassment issue* (Ismail* M* *9 Chee* 7* J*9 L Bee9 C* F9 008)* Mala,sia goernment has also

put efforts =, conducting orkshops to enhance the aareness and implement the a,s to handle

such case* In short9 preention ill =e an effectie a, to deal ith the pro=lem in the long term

as people are =eing educated to deal ith it and aare of se2ual harassment*

Di'crimia$i%

As mention in the


32/41

-ar$ E9 C%c3'i%

oada,s9 people are ala,s tr,ing to make a decision that is =enefitting to the

compan,* Hoeer9 sometimes =eing =eneficial to the compan, =ut there is unethical* +herefore9

ethical dilemma is occurred hen this situation happened* Ethical dilemma is influence =,

personal alue hen a person has the a=ilit, to make to choices9 =ut can onl, perform one or

the other that among seeral rong and unethical action* ome people prefer to make decisions

=ased on ethical code =ut most of people are desired to reach the goal of the compan, een

though there are unethical* +hus9 there ill =e a great danger in the =usiness orld if an ethical

dilemma is failed to acknoledge* +he good nes is that situation such as ethical dilemma does

not hae a perfect solution9 choosing either of the alternaties ill not =e entirel, rong*

Ethical dilemma is ala,s occurred in our dail, life like making decision* +here is

essential in the decision making process* It affects the use of different modes of reasoning =,

decision makers* Dhen people make the decision that is onl, =enefitting toard them9 the, ill

start to anal,.e the ethical dilemma encountered9 and then select an appropriate mode of

reasoning to resole the situation in an ethicall, accepta=le fashion* As a result9 it leads to ethical

actions* For e2ample9 people ma, act unethicall, to make the decisions in such conflicting

situation ho eigh profita=ilit, a=oe alues and morals* +hus9 ethical misconduct =, an

indiidual ill =e detrimental to the interest of stakeholders*

According the


33/41

At the end9 this stud, is proed that ethical dilemma is er, common and ala,s

occurred in our dail, life and in the professional9 corporate and also in the =usiness orlds* B,

referring the 0


34/41

Al/Fedaghi9 * * (00%)* 7,ing a=out 3riate Information' An Ethical :ustification*

Communication of the IIMA9 %(!)9 #8/%&*

Alle,ne9 :* B*9 L Elson9 :* "* (01!)* +he Impact of Federal "egulations on Identif,ing9

3reenting9 and Eliminating Corporate Fraud*Journal of Legal, Ethical and Regulatory

Issues9 1&9 61/10&*

B*M* $e3aulo9 $* J* (1665)* Eer,da, lies in close and casual relationships* :ournal of

3ersonalit, and ocial 3s,cholog,*

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Challenges in Human 3articipants "esearch among $ifferent ettings*VJournal of

Preventive Medicine 1., 16/1*

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te2t=ook4ethics/in/=usiness/1!4ethical/responsi=ilities/of/management/664different/

approaches/to/ethical/dilemmas/#&%/5!8#4

Cad=ur,9 * (00)*Ethical !usiness "ractices."etrieed from

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importance/of/ethics/in/=usiness*htmlWa2..!HJre?B

Caico9 F* :*9 Muffler9 * C*9 L Mu


35/41

CBIAED* (0089 Ma,)* 3reent fraud in ,our orkplace* 5%(#)* "etrieed from

http'44*c=ia*com4c=ianes400840%40080%BX3reentFraud*htm

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http'44ps,cholog,*a=out*com4od4ps,cholog,1014f4ps,chfa@*htm

Chris9 C* (01!)*Ethical 'ilemmas in the %or("lace) %hy 'o $ome *rgani+ations $tum!le&

"etrieed from http'44hrdail,adisor*=lr*com401!4084!04ethical/dilemmas/in/the/

orkplace/h,/do/some/organi.ations/stum=le4Wsthash*En%+Yi&Y*dpuf

Cla=urn9 +* (01#9 Ma, 6)* ?oogle Admits Its Dorkforce 7acks $iersit,* Information eek*

"etrieed :ul, !9 01#9 from' http'44*informationeek*com4strategic/

cio4team/=uilding/and/staffing4google/admits/its/orkforce/lacks/diersit,4d4d/

id41&660

Cona,9 :* * (01#)* he invention of lying -at or(/) he develo"ment and validation of a

situational 0udgment test measuring dishonesty in organi+ations* npu=lished

$octoral dissertation9 niersit, of outh Florida

Cortina9 7* M*9 Ja=att/Farr9 $*9 7eskinen9 E* A*9 Huerta9 M*9 L Magle,9 * :*9 (011)* electie

Inciilit, as Modern $iscrimination in -rgani.ations' Eidence and Impact*Journal of

Management9 !6(&)9 5

http'44


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$epartment of ocioog,* (n*d*)* %hat is $ociology&"etrieed from

https'44sociolog,*unc*edu4undergraduate/program4sociolog,/ma


37/41

Firestone9 :* M*9 Miller9 :* M*9 L Harris9 "* (011)* Implications for Criminal :ustice from the

00 and 00& $epartment of $efense ?ender "elations and e2ual Harrasment

ure,s*American Journal of Criminal Justice9 !89 #!T#%1*

?*:* "ossou9 B* M* (000)* $efining and understanding fraud' A outh African case stud,*

Business Ethics Uuarterl,*

?eoffre,9 J* (005)*E#ICAL 'ILEMMA$* "etrieed from http'44ethicaldilemmas*co*uk4

?raafland9 :* L Eenkhoorn9 3* (010)Lying in !usiness insights from #annah Arendt3s 4Lying

in Politics5.+il=urg niersit,*

Heckman9 :* :** (1665)* $etecting $iscrimination* he Journal of Economic Pers"ectives,1()9

15

http'44pu=lic*econ*duke*edu4\hf1#4teaching4poert,disc4readings4heckman65*pdf

Ik=ale9 +*9 Hida


38/41

JKlemark9 * (00!)* 7iing ith conflicts/ethical dilemmas and moral distress* +he ational

Institute for Dorking 7ife* "etrieed from

http'44*sciencedirect*com*li=e.p*utar*edu*m,4science4article4pii40886%!&0!0086

Y

Jamir9 -* (00%) e2ual Harassment 7a in Israel* International :ournal of $iscrimination

and the 7a9 89 !1%/!!%*

Jlempner9 ?* (005)* Ethical dilemmas* Creating A +hinking Board*

Joesten=aum9 3* (00)* 7eadership' Facing Moral and Ethical $ilemmas* +he 3hilosophic

Consultant' "eolutioni.ing -rgani.ations ith Ideas*

7ai9 7*9 L Ba=cock9 7* C* (01)* Asian Americans and Dorkplace $iscrimination' +he Interpla,

=eteen e2 of Ealuators and the 3erception of ocial kills*Journal of

*rgani+ational 2ehavior9 !#9 !10T!&*

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7arence* (n*d*)*Ethical 'ilemma in oday8s 2usiness."etrieed from

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7isa9 F* (n*d*)* ?lo=al 3ost* +he Effects of $iscrimination in the Dorkplace* "etrieed from

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7itschka9 M*9 uske9 M*9 L Brandteiner9 "* (011)* $ecision Criteria in Ethical $ilemma

ituations' Empirical E2amples from Austrian Managers*Journal of 2usiness Ethics9

10#9 #8!T#5#*

7unen=urg9 F* C* (010)* e2ual harassment' An a=use of poer* International :ournal of

Management9 Business and Administration9 1!(1)

Martin9 B* (n*d)* +elling 7ies for a Better Dorld $ocial Anarchism9 !%9 8/!6*

*7* 3i@uero9 * +* (00%)* E2amining the role of differential association and techni@ues of

neutrali.ation in e2plaining corporate crime* $eiant Behaiour*

g9 C* L -thman9 :* (00)* =nanted and =nelcome) $e9ual #arassment in the

Malaysian %or("lace.

oor Ha.lina Ahmad9 Mahfoo. A* Ansar9 L "ehana Aafa@i* (00%)* Ethical "easoning' +he

Impact of Ethical $ilemma9 Egoism and Belief in :ust Dorld*Asian Academy of

Management Journal9 10 ()9 51T101*

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inentor,* Educational and ps,chological measurement9 #5()9 #5!/#6&*

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39


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U* Miao9 A* eman9 :* u L 7* Yu* (01!)* +he "elationship Beteen Ethical 7eadership and

nethical 3ro/-rgani.ational Behaior' 7inear or Curilinear Effects : Bus Ethics9 11&9

T &%!*

"amsaroop9 A* L 3arumasur9 * B* (008)* +he prealence and nature of se2ual harassment

in the orkplace' A model for earl, identification and effectie management thereof*

Journal of industrial Psychology, ->/, >6


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alentine9 *9 am9 *9 Hollingorth9 $*9 L Hall9 C* (01!)* Ethical Conte2t and Ethical

$ecision Making' E2amination of an Alternatie tatistical Approach for Identif,ing

aria=le "elationships*Journal of 2usiness Ethics9 1#9 %06T%&*

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http'44*spectacle*org40%004lies*html

Delker9 :*9 L Berardino9 7* (01!)* Integrating Ethical $ecision Making In Multiple Business

Courses*Academy of Educational Leadershi" Journal9 189 88/6!*

Dells9 C*9 L $arnell9 C* * (01#)* Caster emen,a9 ?ender erification and the 3olitics of

Fairness in an -nline +rack L Field Communit,* $ociology of $"ort Journal9 !19 ##/&%*

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Aggression*Journal of 2usiness Ethics9 11%9 &18T&!#*

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Australia;s 3arliament* e7a :ournal' Murdoch niersit, Electronic :ournal of 7a9

18()9*

business ethics utar assignment

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