Pre-Ethics Assignment No. 2 Due 10/17 Ethics Exercise: Read

Pre-Ethics Assignment No 2 Due 10/17 Ethics exercise: Read The Followin

Read the following case and respond to the questions that follow, using an analysis sheet for your response:

Case Overview:

Barbara King, a recent graduate working as a corporate communications specialist, faces an ethical dilemma involving the reporting of inflated company financial numbers. The company she works for is a young, high-growth firm during the dot-com boom, and it has a culture that encourages the intentional inflation of quarterly financial results to boost the company's stock price. Barbara suspects the numbers are inaccurate but passes them along due to peer pressure, loyalty, and her newness to the company. The decision to report inflated figures raises questions about honesty, responsibility, and loyalty within the workplace environment.

Discussion Questions:

• Describe the ethical dilemma that Barbara faces.
• What are Barbara’s possible choices to make in this situation, based on the ethical theories that you have studied?
• For each alternative choice/approach, who are the stakeholders? Who benefits (gains) and who loses (is harmed) as a result?

Paper For Above instruction

The ethical dilemma faced by Barbara King centers on her decision to either comply with her company's practice of inflating quarterly financial numbers or to act ethically by reporting truthful data. This dilemma embodies conflicts between honesty, loyalty to her employer, and her own moral integrity. It also involves considerations of potential repercussions on stakeholders such as herself, her coworkers, investors, and the company's long-term trustworthiness.

Barbara’s primary choice is whether to perpetuate the practice of inflating numbers or to challenge the status quo and report the truth. From an ethical standpoint, different theories provide a framework for analyzing these options. Utilitarianism, which emphasizes maximizing overall happiness and minimizing harm, would evaluate which action produces the greatest benefit for the majority. If she reports truthful numbers, it might lead to short-term discomfort or sanctions but supports honesty, transparency, and future stability of the company. Conversely, continuing to inflate numbers might boost short-term profits and morale but risks larger ethical and reputational damages if deception is uncovered, potentially leading to regulatory action or loss of stakeholder trust.

Deontological ethics, which emphasizes duty and adherence to moral rules, would argue that Barbara has a duty to uphold honesty and integrity regardless of consequences. From this perspective, reporting truthful figures aligns with moral duties to truthfulness and transparency. Conversely, following orders or succumbing to peer pressure to inflate the numbers violates ethical duties. Virtue ethics, focusing on moral character, stresses qualities like honesty, courage, and integrity. An honest approach would cultivate virtues essential for ethical leadership, while complicity in deceit would undermine character development and moral reputation.

In terms of stakeholders, the choices impact various groups. If Barbara reports truthful data, stakeholders benefiting include investors (who can make informed decisions), regulators, and the company's future reputation. Customers and employees might also benefit from increased trustworthiness. On the other hand, the company and its insiders, who benefit from the inflated numbers to sustain stock prices and executive bonuses, would lose if truth comes out, facing penalties, lawsuits, and damaged trust.

If Barbara chooses to remain silent or actively participate in the inflation, she and her coworkers might maintain their jobs and benefits temporarily, but at the expense of her personal integrity and the long-term well-being of stakeholders such as investors, customers, and the public. The company's reputation and financial stability could also suffer significantly if the deception is exposed, leading to legal and financial ramifications.

In conclusion, Barbara's ethical dilemma involves balancing her duty to uphold honesty against her loyalty to the company's culture and her own career interests. Ethical decision-making grounded in principles like honesty, transparency, and integrity suggests that she should advocate for truthful reporting, even at personal or professional risk. Recognizing the broader implications of her choice underscores the importance of ethical conduct for sustaining trust and integrity within business environments.

References

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