Deliverable 6: Legal And Ethical Decision Making

15deliverable 6 Legal And Ethical Decision Making Businessashley Sant

Identify the core assignment question: Write a comprehensive corporate memo analyzing a business ethical dilemma involving a company's vice president suspected of dishonesty related to expense reimbursements, discussing the ethical concerns, legal implications, and appropriate organizational responses, including supporting laws, internal policies, and recommended actions. The memo should include an explanation of the relationship between ethics and law, the potential breach of fiduciary duties, and the importance of whistleblowing policies, supported by scholarly references.

Paper For Above instruction

The ethical landscape of business decisions is complex and multifaceted, often intersecting with legal statutes that govern corporate behavior. In the scenario involving a vice president (VP) suspected of misrepresenting expenses, a thorough analysis must consider both ethical principles and legal obligations to determine appropriate action and organizational response.

The primary ethical concern centers on potential dishonesty by the VP, who allegedly claimed reimbursement for personal expenses incurred on a non-business related occasion. If true, this behavior constitutes a breach of honesty and integrity, fundamental ethical principles in corporate governance. According to Bazerman and Gino (2012), dishonesty undermines trust within organizations and can have serious repercussions for organizational culture and stakeholder confidence. The question arises whether the VP’s actions represent merely a violation of internal ethical standards or also infringe upon legal statutes.

Legally, the conduct could be construed as misappropriation or fraud, depending on jurisdiction-specific statutes. Under many state criminal codes, such actions might qualify as theft, embezzlement, or fraudulent activity. For example, in the United States, potential violations could include violations of criminal laws that prohibit the filing of false claims or fraudulent expense reimbursements (Madden, 2019). The enforcement of these laws entails legal consequences such as fines, restitution, or imprisonment. Thus, the conduct is not merely an ethical lapse but also a legally punishable offense if substantiated.

Understanding the relationship between ethics and law reveals that while all legal violations are ethical breaches, not all ethical breaches are necessarily illegal. Ethical violations, such as abusing company policies or acting dishonestly without a legal breach, are often addressed through internal disciplinary mechanisms (Miethe, 2019). However, in cases where legal statutes are violated, the organization has an obligation to act decisively, not only to uphold reputation but also to comply with legal requirements and avoid liability.

Organizational responses should begin with a confidential investigation, adhering to internal policies and ensuring fairness. The organization’s whistleblowing policy plays a vital role here; it mandates employees to report unethical or potentially illegal activities through appropriate channels. In this context, the employee reporting the VP's conduct demonstrated ethical responsibility and loyalty to the organization. Confidentiality protections prevent retaliation, encouraging employees to disclose misconduct without fear (Miethe, 2019).

If investigations confirm misconduct, measures must be taken to address the breach, including disciplinary action or legal proceedings if criminal activity is verified. Conversely, if the investigation finds that the VP did meet with a client, but used personal funds for expenses, internal guidelines should be reinforced to segregate personal and business expenses clearly. To prevent similar incidents, the organization should implement strict policies requiring prior approval for expenses and transparent documentation of all expenditures.

Legal considerations in this case include reviewing applicable state statutes that define and penalize fraudulent expense claims. For example, under the California Penal Code, fraud involving false claims can lead to criminal charges (California Penal Code, 2020). The organization must ensure compliance with these laws and cooperate with authorities as needed.

From a moral and strategic standpoint, maintaining organizational integrity depends on transparent and consistent enforcement of policies. Leaders must exemplify ethical conduct to foster a culture of honesty and accountability. Training programs emphasizing the importance of ethics and adherence to legal standards can reinforce this culture effectively.

Ultimately, the decision to report the suspected misconduct aligns with ethical principles of honesty, accountability, and loyalty. It also aligns with legal mandates that prohibit fraud and misrepresentation. The organization’s commitment to ethical conduct is reinforced by policies that encourage whistleblowing and protect employees who report misconduct (Miethe, 2019). Ensuring that policies are explicitly communicated and consistently enforced will help mitigate such risks in the future.

References

• Bazerman, M. H., & Gino, F. (2012). Behavioral ethics: Toward a deeper understanding of moral judgment and dishonesty. Annual Review of Law and Social Science, 8, 85–104.
• California Penal Code §487 (2020). Theft and related crimes. Retrieved from https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=487.&lawCode=PEN
• Madden, T. M. (2019). Law and strategy and ethics. Geo. J. Legal Ethics, 32(1), 181-200.
• Miethe, T. (2019). Whistleblowing at work: Tough choices in exposing fraud, waste, and abuse on the job. Routledge.
• Organization for Ethical Business Practice. (2018). Internal policies on expense reimbursement. Retrieved from https://www.organiations.org/ethical-practices
• Robinson, S. L., & Bennet, R. J. (1995). A typology of deviant workplace behaviors: A multidimensional scaling approach. Organizational Behavior and Human Decision Processes, 63(1), 88–107.
• Sims, R. R. (1992). The challenge of ethical behavior in organizations. Journal of Business Ethics, 11(7), 505–513.
• Smith, J. (2017). Fraud detection techniques in corporate finance: A legal perspective. Journal of Financial Crime, 24(3), 445–461.
• United States Sentencing Commission. (2018). Sentencing guidelines for corporate fraud. Retrieved from https://www.ussc.gov/guidelines
• Wallace, R. S., & Boles, J. (2012). Ethical decision making in business: An integrated approach. Business Ethics Quarterly, 22(1), 65–90.