There are certain actions that have to be considered by an organization in order to become economically and strategically prosper and perfect. It is profitability and economic expansion for that an organization always strives for and in order to expand positively, effective decisions should have been taken considerably. Apparently, cost and profitability are the only two elements that deem important for an organization, but it is also important for them to adhere with the compliance accordingly and effectively.
Ethics is basically referred as norms and dos of an activity and it is solely responsible for the economic and strategic prosperity of a company. Among number of kinds of ethics, the name of Business Ethics is one of them that have its own significance and importance in a broad nutshell. The essence of ethics varies from organizations to organizations and it is totally different in not for profit (NFP) organizations in particular. Chief Executive Officer (CEO) and other management officials have to comply with the standards and should compel the organizations to stay in the node of business ethics. Specifically, the essence of business ethics is quite different for not for profit organization (Badiou, p.45). The main perspective of this assignment also relates to Business Ethics for Not for Profit Organizations. There is a case given with this analysis, pertain to Able Again, a nonprofit organization that partners with a profit organization manufactures low cost adapted motorized scooters for the disabled. There are two different questions that have to be considered and answered in this particular analysis. It is required to suggest Tricia about the ethical issues and consideration to become economically and strategically active.
- Ethics is part of philosophy which can be generally referred as Moral theories, ethical model or philosophical ethics. The ethics is particularly a benchmark or criteria, that is used to organize, protecting and make recommendation to distinguish the right and wrong conducts. The ethics is typically highlighted certain disputes that may ultimately lead to violate any form of moral diversity. Moral diversity is such a degree under which, different policymakers from the population show signs of preferences over diverse ranges of assessment. However, the “axiology” is termed as the super field in the ambit of philosophy which encompasses with ethics as well as aesthetics, and is integrated with each sub-category with having value (MacKinnon, p. 116). The primary objective of ethics theory is to determine the best possible manners through which the people can spend their lives. Moreover, it also plays a major role as it the standard that assists an individual to make a distinction between correct or immoral practices within specific scenarios. The term ethics may be further categorized under four sub branches include:
- Meta ethics,
- Normative ethics,
- Applied ethics,
- Descriptive ethics,
On the other hand, there are number of theories that are associated with ethics and its relevant dimensions. In this particular analysis, it is required to suggest Tricia about the ethical based theories pertain to the not for profit organization, that is now persuading towards become a profit organization. There are three theories that have been selected for the same analysis to enhance the productivity of the company. The names of the theories are Consequentialism theory, Value Clarification theory and Utilitariansim theory. This theory is committed to address majority of the practices that lean on unethical consequences that brings out from actions. This theory clearly based on the fact that the companies are totally emphasizing to maximize their profit by neglecting all of the responsibilities towards their customers. In other way, the individual only thinks about their own benefits and interest. All the actions are ultimately reflected negative or positive consequences. The companies should pursue only right actions without having any concerns regarding outcomes. There should be no aim in terms of right or wrong or good or bad. Following are some of the factors in this theory involve:
Moral egoism: It exhibits that an individual always perform such actions which would be the best for their long term benefits.
Personal egoism: It shows that the central focus of a person’s acts is always for the best long-term interests, without having any concern of how others should act
Distant egoism: It states that an individual always act for their best long-lasting interest.
The biggest disadvantage of Consequentialism theory is that it relates to Egoism and it all of the activities and actions depends upon on a non-moral consequences and it is not a perfect one for a Nonprofit organization like Able Again. It is also known as ethical relativism states that the leading feature is not what people believe, but aware of their feelings, beliefs and standards system. Therefore, the people consider substitute approaches for thinking and actions. The theory is based on what the person is intended to do rather have to do. Values clarification put a heavy emphasis on feelings, that it is almost identical to the values and feelings. It also poses a “philosophical relativism” reflects a confidence on the fact that there are no moral or ethical restrains and everything is relevant. The other theory that is the value clarification theory is also on the same side of Consequentialism theory because it also relates to egoism in particular. Utilitariansim theory is the only theory that could be applied on the case of Able Again Company, as this theory totally associated with the line of business of Able Again. Utilitarianism is considered as the most effective theories among all of them. It reflects a facet that all of the certain actions should be performed whose consequences are relatively more favorable than unfavorable to anyone. The theory aims that the optimistic approaches is the only provision that enable to accelerate the positive impacts in terms of pleasure, welfare or according to personal preferences ability to live. Utilitarianism is a typical example of the results of the theory of moral doctrine. This theory believes that it is important to bring cumulative positive result on every, and not just the overall positive effect on any one person (Mizzoni, p. 76). The biggest advantage of having and applying this theory on the selected company is that, it devises an equal opportunity for every individual. According to this theory the ethical and moral beliefs of every individual is the same and a person should move towards doing the good things in particular. This particular theory would be more valuable than any other theory for the business of Tricia in order to persuade the hostile board of directors to become more ethically sound and for the betterment of their current business practices. By applying this theory on the context of the company, then the stance of achieving betterment in both charity and nonprofit entity would become effective in future.
- There is a case associated with the assignment known as “Ford Pinto Case”, in that it is devised that, it is more than important for an organization to check the durability and effectiveness of a product before officially launching in the market in order to prevent from any sort of causalities and other hazards. Tricia’s board members are in the fact that they should launch the motorcycle product soon in the market in order to gain sufficient funds and productivity of the company; however the engineers of the company are not in the favor or launching the motor bike officially in the market prior than some serious accidental testing. In the case of Ford Pinto, it is found that it was a serious lacking of testing, as when the company launched the product in the market, it had a fuel tank issue associated with it that created problem not only for the company but also for the consumers as well. Total expense on per fatality arose to a level of $ 200,725 that was seriously an unbearable cost for the company. The core lesson learned by Able Again from the incident and case of For Pinto that they should not take any decision in a hurry as it pertains to the financial and strategic decision of the company. The reputation of the company would fall considerably, if they launch the product without any further testing. Egoism theory totally applies on the case of Ford Pinto as the company was unaware with the hazards of the product of the company.
The main perspective of this assignment also relates to Business Ethics for Not for Profit Organizations. From the entire discussion, it is found that Able Again should launch its motorcycle for disable people after critical thinking and testing, as it may create problems for them if it could have been launched without heavy and critical testing. There is the only way from that the company may bring sign of ethics in their not for profit organization as well.
Badiou, Alain. Ethics: An Essay on the Understanding of Evil. Chicago: Verso, 2001.
MacKinnon, Barbara. Ethics: Theory & Contemporary Issues - Concise Edition. London: Cengage Learning, 2010.
Mizzoni, John. Ethics: The Basics. Perth: John Wiley & Sons, 2009.