Ethical Dilemma in Business Organization-Free-Samples for Students

Question: Anayse and Evaluate the factor of Ethical Dilemma in Business Organization. Answer: Introduction In every business organization, there are instances when the managers or the supervisors have to face some tricky ethical situations. These tricky ethical situations are called Ethical Dilemma (Lo 2012). On a more precise note, Ethical Dilemma refers to those certain situations where the organizational managers or supervisors have to choose between the alternative decisions. These are some of the most complex situations in business and thus, they are called Ethical Dilemma. All these issues are highly related with the business ethics. Thus, these issues need to be solved with great care (Wachs 2017). Description of Ethical Dilemma Different kinds of ethical dilemmas can be seen in todays business organizations. Accounting and finance is the business field where different kinds of ethical dilemmas can be seen. The above section shows one of such ethical dilemma situation in a business organization. In one of the business organizations, the management of the company instructs the accounts manager of the company to register a transaction in the incorrect manner. In order to describe the situation of ethical dilemma, it needs to be mentioned that the year ending of the company is on 31 December. On 1 December 2016, the company signs a contract with one of its customers in order to provide them with services (Ford and Richardson 2013). The contract is signed on 1 December 2016 and it will continue for one year long. According to the accounting rules and regulations, the company needs to record the revenue for one month that is for the month of December. The rest amount of the revenue will be shown in the next year. This is the actual way to record the revenue for the year 2016. However, in this case, the management of the company is instructing the accounts managers to record the entire amount of contract in the month of December 2016. The main reason of doing so is to boost the re venue for the current year 2016 (Shapiro and Stefkovich 2016). According to the rules and regulations of accounting, this is the incorrect and unethical way of recording the revenues of the organizations. Apart from this, personal self-interest needs of the management are associated with this wrong record of revenue. Due to wrong accounting treatment, the entire amount of revenues will be shown in the year of December 2016 and for this reason, the management team will be able to get a huge amount of performance bonus (Kuntz et al. 2013). In addition, due to this deliberate wrong accounting entry, the annual financial statement of the company will not reflect the true financial position of the company. As a result, the investors of the company will be misguided. However, it can be seen that many unethical aspects are involved with this wrong accounting treatment. This situation is an ethical dilemma for the accounts officer. It is the job responsibility of the accounts officer to take orders from the management as the management develops the stra tegies to run the business (Natale and Doran 2012). On the other hand, all the accountants need to follow all the accounting standards and principles at the time of carry on the accounts and financial works of the companies. This is the ethical dilemma for the accounts officer. This is called ethical dilemma, as the accounts officer needs to choose from this two options. Evaluation of the Options Available According to the above situation, it can be seen that the accounts officer is suffering from the ethical dilemma. In this situation, two options are available for the accounts officer and they are evaluated below: 1st Situation The accounts officer has the option to agree with the decision of the management to record the entire revenues for the in December 2016. However, it needs to be mentioned that this option will be high unethical for the company as well as for the accounts officer as this act will break the ethical code of conduct of the company and it will beak the accounting principles and standards. In future, the business organization many have to face the consequences of this wrong accounting entry. Thus, the goodwill of the company can be affected along with the investors may lose faith from the organizations. These are the consequences of this first option (Braswell, McCarthy and McCarthy 2017). 2nd Situation In this situation, the accounts officer may take several steps to avoid the wrong accounting entry. First, the accounts officer needs to raise the issue in front of the management in a polite way. It is the responsibility of the accounts officer to inform the future consequences of this wrong entry to the management. It may happen that the management fails to foresee the future consequences of this wrong entry. Thus, the accounts officer needs to remind them about the code of ethics of the company. Second, the accounts officer can decline to make the incorrect entry of the revenue and can report the issue to the higher authority. However, this is an aggressive way for the accounts manager to resolve the issue. The accounts manager can discuss this matter with his/her peer employees and can raise the issue to the higher authority in a polite manner (Purtilo and Doherty 2015). Thus, from the above discussion, it can be seen that there are two specific options to the accounts officer to resolve the issue. However, it can be seen that the second option is more preferable in this situation. Conclusion Ethical Dilemma is one of the major ethical issue of the business organizations. From the above discussion, it can be seen that the accounts officer of the company is facing a major ethical dilemma in the field of accounting. However, as per the discussion, it can be seen that there are two major options. According to the condition, the second option will be more suitable as the accounts officer needs not to break ethical code of conduct in this option. Based on the whole discussion, it is recommended that the company needs to implement whistleblower hotlines for the employees so that they can maintain honesty and integrity in the workplace. References Braswell, M.C., McCarthy, B.R. and McCarthy, B.J., 2017.Justice, crime, and ethics. Taylor Francis. Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical literature. InCitation classics from the Journal of Business Ethics(pp. 19-44). Springer Netherlands. Kuntz, J.R.C., Kuntz, J.R., Elenkov, D. and Nabirukhina, A., 2013. Characterizing ethical cases: A cross-cultural investigation of individual differences, organisational climate, and leadership on ethical decision-making.Journal of Business Ethics,113(2), pp.317-331. Lo, B., 2012.Resolving ethical dilemmas: a guide for clinicians. Lippincott Williams Wilkins. Natale, S.M. and Doran, C., 2012. Marketization of education: An ethical dilemma.Journal of business ethics,105(2), pp.187-196. Purtilo, R.B. and Doherty, R.F., 2015.Ethical dimensions in the health professions. Elsevier Health Sciences. Shapiro, J.P. and Stefkovich, J.A., 2016.Ethical leadership and decision making in education: Applying theoretical perspectives to complex dilemmas. Routledge. Wachs, M. ed., 2017.Ethics in planning. Routledge