Running Head: Business Ethics Homework 1

Running Head Business Ethics Homework 1business Ethics Homeworknamei

Business Ethics Homework Name Institution BUSINESS ETHICS HOMEWORK !2 Business Ethics Homework Various values and standards guide the manner in which people lead their lives and interact with others in the society. These rules of life are bound to evolve and change over time as a person continues to gain more knowledge and many experiences in life, which helps change the way in which they perceive the reality of the world around them. The life of human beings is based on ethics, which makes him or her a rational being since their actions are justified through the evaluation, comparison, and judgment of the situations, which is the used to justify the course of action that is adopted by an individual (Pfeiffer & Forsberg, 2012).

Thus, one must be guided by the values and principles which are needed to make effective decisions within the organization and for their personal improvement. Making the wrong decision could affect the future progress of the firm and the people who depend on the organization. The RESOLVED method provides a way of analyzing and understanding various ethical issues in business and identifies the best approaches to resolving these issues. RESOLVEDD Method in the Decision Making Process R- Reviewing the Facts of the Case History The family practice business owned by Dr. Smith had been in operation for the past few years. Saul, his younger brother, owned an accounting firm before he sold it to come and work with Dr. Smith in the family practice business at his hometown of Zoar, Ohio. His role at the business was to help his brother monitor any accounting errors and details while dealing with the patient records. Background BUSINESS ETHICS HOMEWORK !3 While going through and sorting the patient records and business paperwork, Saul noticed that there were errors in charging for Medicaid at the family practice business to the patients. The Medicaid program is aimed at assisting the low-income households to access quality health care services, without requiring them to make payments using cash or checks. Saul notices that the Medicaid charges have been increasing over the years while the patients continued to make cash payments for the services they received (Pfeiffer & Forsberg, 2012). E-Estimate the Conflict Dr. Smith has helped the people in his hometown to access medical care, which has gained him a positive reputation in the community. However, after the evaluation of the paperwork and patient records, Saul Discovers that more the $75,000 has been charged through Medicaid, even though the patients had made cash payments for the services they received. These charges are applied to all individuals regardless of their income level. This causes Saul to confront Dr. Smith seeking clarification on how these errors had occurred. S- Possible Solutions In handling the situation, Saul should talk to Dr. Smith to convince him on the need to report the case to Medicaid. This would help them avoid the possible challenges that may arise when these fraudulent actions are discovered, among them being sent to jail for the two of them. In case Dr. Smith does not accept the proposed solution, he should make a move to report the incident to Medicaid, as this would help them to avoid being involved in cases of fraud. Even though this may compromise the situation of his brother, it would ensure that the necessary actions are taken to protect the people and improve the quality of medical care to the people in the town (Carroll, & Buchholtz, 2014). BUSINESS ETHICS HOMEWORK !4 The other alternative solution would be for Saul to avoid reporting the incident and assume that he had not discovered the errors in the patient records all along. Even though this may accrue as malpractice in his profession, it would save his brother’s service and enable him to avoid losing his job (Lashley, 2016). However, if such an act is discovered, more consequences may accrue such as the closure of the family practice business and termination of his license. O – Important and Likely Outcomes By reporting the incident, the hospital may be closed due to misappropriation of medical funds and exploitation of the patients. Reporting the case may offer the doctor a chance to make the necessary payments to ensure that the money he had fraudulently acquired is paid pack to Medicaid. In addition, Saul is bound to lose his job and license once the incident is discovered, if h opts not to report it (Carroll, & Buchholtz, 2014). L –Likely Impact of the Solution The malpractice may lead to the closure of the family care business, which could affect the people of the town, who depend on it for their healthcare needs (Pfeiffer & Forsberg, 2012). In addition, Dr. Smith may be jailed for his actions in as much as the accountant; Saul is likely to have his license canceled and risk a jail term for the accounting malpractices. If the case is not reported, and the patients continue being charged the same way, Medicaid could continue losing more money. V – Values Upheld by Each Solution Reporting the case portrays the honesty, reliability and acting responsibly by the doctor and the accountant, who may have been unaware of the errors that were taking place, as they had not looked into the details of the patient records. Saul portrays values of accountability, BUSINESS ETHICS HOMEWORK !5 responsibility, and competence by identifying these errors and reporting them to the relevant authorities for actions to be taken. However, failing to report indicates irresponsibility, lack of professionalism, and dishonesty as the customers may continue to be exploited by these actions (Pfeiffer & Forsberg, 2012). E- Evaluating the Solutions By reporting the incident, the personal gains are set aside for the betterment of the people in the society and the institution. The accountant may lose his job at the firm if it is closed down for the misappropriation of funds upon reporting the case. Failing to report the incident will protect personal interests as the individuals will keep their jobs by covering up the accounting mistakes. However, the firm stands to lose everything is such malpractices are discovered and lead to a jail term for both Dr. Smith and Saul, who is responsible for the firm’s accounting procedures (Ferrell & Fraedrich, 2015). D- Decision on the Best Solution The best solution would be the first one where Saul informs and advises Dr. Smith to report the accounting mistakes to the relevant authorities. This way, the authorities will be aware of the mistakes during their pursuit of justice, and it will enable Saul and Dr. Smith to defend the situation as being a mistake since they had not looked into the details of the firm’s paperwork. This could save the future of the firm, as they can be able to make the necessary payments and resume business without risking a jail term or losing their licenses. In addition, they will not have to live and work with fear of being discovered at any moment during their exercise at the firm (Lashley, 2016). D –Defending the Decision BUSINESS ETHICS HOMEWORK !6 The weakness in this solution is that the firm may be able to manipulate the information so that it works to its advantage, citing the lack of focus on details by the doctor before he was able to acquire the assistance from Saul, a qualified accountant. Saul and the doctor may act unethically to save the firm when reporting the cases (Ferrell & Fraedrich, 2015). However, reporting the incidence outweighs the effects of continuing the malpractice, where unethical conduct may continue if the case is not disclosed. The willingness to report the case portrays the honesty, responsibility, and commitment to their clients, who need to be served with effectiveness. BUSINESS ETHICS HOMEWORK !7 References Carroll, A. B., & Buchholtz, A. K. (2014). Business and society: Ethics, sustainability, and stakeholder management. Nelson Education. Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision-making & cases. Nelson Education. Lashley, C. (2016). Business ethics and sustainability. Research in Hospitality Management, 6(1). Pfeiffer, R. S., & Forsberg, R. P. (2012). Ethics on the job: Cases and strategies. Cengage Learning.

Paper For Above instruction

Business ethics serve as guiding principles that shape the moral conduct of individuals and organizations within society. These principles are rooted in core values and standards that evolve over time, depending on societal changes, personal experiences, and increasing knowledge (Pfeiffer & Forsberg, 2012). The significance of ethics in human life stems from the capacity for rational judgment, whereby individuals evaluate situations to justify their actions. Ethical decision-making is paramount in maintaining organizational integrity and personal accountability, especially when faced with complex dilemmas that could significantly impact stakeholders and the wider community.

Introduction: The Role of Ethics in Business

Ethics in business create a framework for responsible behavior, fostering trust and credibility among clients, employees, and other stakeholders. Ethical conduct ensures that organizations operate not only legally but also morally, aligning their practices with societal expectations and moral standards (Carroll & Buchholtz, 2014). In the context of healthcare, ethical decision-making becomes even more critical due to the direct impact on human well-being and societal trust. This paper explores a specific ethical dilemma encountered in a family practice business, utilizing the RESOLVED method to analyze the situation and identify the most appropriate course of action.

Case Background

Dr. Smith’s family practice clinic, situated in Zoar, Ohio, has served the community for several years. His younger brother Saul, a professional accountant, joined the practice to oversee financial records and ensure fiscal responsibility. While reviewing patient records and business paperwork, Saul discovered discrepancies in Medicaid billing practices. Specifically, he noticed that Medicaid charges had surged by over $75,000 over the years, despite patients paying cash directly for their services. This inconsistency raised concerns about potential fraud and ethical violations within the practice (Pfeiffer & Forsberg, 2012).

Analyzing the Conflict: Ethical Dimensions

The core ethical conflict revolves around the possible misappropriation of funds through fraudulent Medicaid billing. On one hand, Dr. Smith has a positive reputation in the community for providing accessible healthcare; on the other hand, the suspicious billing practices threaten this reputation and raise legal issues if uncovered. Saul’s discovery puts him at a crossroads, forcing him to choose between loyalty to his brother and adherence to ethical standards and legal obligations (Ferrell & Fraedrich, 2015).

Evaluating Potential Solutions

One viable solution entails Saul confronting Dr. Smith directly and persuading him to report the Medicaid discrepancies to authorities. This approach aligns with principles of honesty and accountability, which are fundamental to ethical practice (Lashley, 2016). Transparency with regulators would allow for rectification of errors and prevent legal repercussions that could threaten the practice’s existence.

Alternatively, Saul could choose to remain silent, either out of loyalty or fear of repercussions, and ignore the irregularities. However, this raises significant ethical concerns, as silence in the face of fraud compromises integrity and potentially facilitates ongoing misappropriation of funds (Carroll & Buchholtz, 2014). The decision to conceal malpractices may seem advantageous short-term but ultimately sacrifices ethical integrity and can lead to severe legal consequences if discovered later.

Likely Outcomes and Impact of the Chosen Course of Action

If Saul persuades Dr. Smith to report the issue, the practice might face penalties, including fines, sanctions, or even closure, especially if fraudulent billing is confirmed. However, reporting fraudulent activities is an act of moral responsibility that upholds the integrity of healthcare provision and reinforces societal trust (Pfeiffer & Forsberg, 2012). This transparency could lead to rectification, safeguarding future practice operations, and restoring public confidence.

Conversely, choosing silence could protect the practice temporarily but risks legal action, damage to reputation, and potential closure if the scheme is exposed. Moreover, it compromises the ethical obligation to act with honesty, responsible stewardship, and concern for patient welfare (Ferrell & Fraedrich, 2015).

Values Embedded in the Decision

The decision to report the discrepancy reflects values of honesty, responsibility, accountability, and professionalism. These values are central to ethical behavior in healthcare and business, emphasizing the importance of safeguarding public interests and maintaining trust (Carroll & Buchholtz, 2014).

The alternative, to ignore or conceal the misconduct, signifies a lapse in ethical standards, potentially leading to dishonesty, irresponsibility, and damage to stakeholder trust. Both Dr. Smith and Saul are bound by these core principles, which guide their actions towards societal good and legal compliance.

Evaluating the Ethical Responses

Reporting the malpractice aligns with the moral duty of transparency and accountability; it prioritizes societal welfare over individual or organizational gain. This decision, although difficult, demonstrates moral courage and integrity. On the practical front, it could lead to the practice paying restitution, implementing more rigorous oversight, and ultimately restoring ethical standards.

Failing to report, however, may temporarily shield the practice and its leaders but undermines trust and opens the door to worse consequences in the future. Ethical decision-making in such contexts involves balancing legal obligations, personal integrity, and concern for the community (Lashley, 2016).

Conclusion and Recommendations

In conclusion, the ethical dilemma faced by Saul and Dr. Smith underscores the importance of adhering to core values of honesty and responsibility. The most ethical and pragmatic decision involves full disclosure and reporting of the Medicaid billing irregularities to authorities. This course of action not only aligns with professional standards but also demonstrates commitment to societal well-being and legal compliance (Ferrell & Fraedrich, 2015).

While this may entail short-term challenges such as penalties or practice disruption, the long-term benefits of upholding integrity far outweigh these costs. Ethical leadership requires courage and commitment to moral principles, especially in healthcare settings where lives and well-being are directly impacted.

References

• Carroll, A. B., & Buchholtz, A. K. (2014). Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.
• Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision-making & cases. Nelson Education.
• Lashley, C. (2016). Business ethics and sustainability. Research in Hospitality Management, 6(1).
• Pfeiffer, R. S., & Forsberg, R. P. (2012). Ethics on the job: Cases and strategies. Cengage Learning.
• Treviño, L. K., & Nelson, K. A. (2017). Managing business ethics: straight talk about how to do it right. John Wiley & Sons.
• Schwas, F., & Steiner, M. (2019). Ethical dilemmas in healthcare settings: A review. Journal of Medical Ethics, 45(4).
• Ciulla, J. B. (2020). Ethics, the heart of leadership. Praeger Publishers.
• Kidder, R. M. (2005). How good people make tough choices: Resolving the dilemmas of ethical living. HarperOne.
• Valentine, S., & Fleischman, G. (2008). Ethics programs, perceived organizational values, and internal auditor behavior. Journal of Business Ethics, 77(2).
• Boatright, J. R. (2012). Finance ethics: Critical issues in theory and practice. John Wiley & Sons.