First Article
The first ethics article that is discussed in this paper was published in the Chicago Tribune on 6 April 2014. The title of the articles was Flower Shop Deal not divulged on Ethics Forms. Joseph Ryan and Gregory Pratt wrote it when reporting for the Chicago Tribune. The article was accessed via the internet through the link. The study focuses on the conflict of interest in organisations as one of the ethical issues that affect contemporary businesses and their operations.
Article Overview
The article starts with a statement of the several laws that require disclosure of any conflict of interest in organisations and the implications of the failure to follow such laws. Apart from the existing state laws on the declaration of conflict of interest, the authors reveal the many strict rules that exist at Tinley Park, which is the centre of attention in the article (Ryan & Pratt 2014). According to the authors, the company’s flower shop sold over $150, 000 worth of merchandise to South Suburb. This sale was not accompanied by any disclosure over the period of the transaction (Ryan & Pratt 2014).
The article provides details of how the same newspaper made a discovery of a conflict of interest in the dealings between a florist and the local village (Ryan & Pratt 2014). The owner of the company was married to the mayor’s secretary. The company always won the deal to supply the village with flowers even at the Metra Station. Despite the relationship between the company and the village, the public was not aware of the deals that were being made without its consent. In a proper arrangement, the company and the village administrators should have established any conflict of interest that existed in the making of the deal and agreement. The authors reveal that the florist should have engaged in the declaration of conflict of interest on a yearly basis in his deals with the village (Ryan & Pratt 2014).
The newspaper conducted an interview with the florist, after which he disclosed his ownership of the company that he was the sole supplier of flowers to the village. In his defence, the accused individual stated that he was not aware that the declaration of ownership of the company was necessary (Ryan & Pratt 2014). He states that the failed disclosure was not meant to hide anything and that the disclosure forms were not his responsibility in the organisations where the secretary was charged with handling such matters (Ryan & Pratt 2014). With the confession, the authors proceed to recommend that the disclosure laws at the organisation should be re-evaluated and made more strict (Ryan & Pratt 2014).
The article features the view of different individuals and groups regarding the issue of disclosure. The general sentiments reveal the need to strengthen the state laws on disclosure in organisations. After focusing on a specific case, the authors proceed to look at the disclosure laws in the state of Illinois. They state that the laws are inadequate to prevent all the insider deals in organisations, especially with regard to their interaction with public organisations. The state provides forms where officers fill information regarding their sources of revenue. Any attempt to give false information in the forms is highly punished. For example, the authors state that the punishment for providing false information is just $1000 and/or a year in state prison (Ryan & Pratt 2014). According to them, there is no process of ensuring that the information provided is true or false. The absence of regulatory checks may result in the falsification of information (Ryan & Pratt 2014). Thousands of state officials are also said to fill these forms. This means that there is still room to provide false information without detection.
The authors also reveal that the regulations in place have been in place for over 40 years. Unlike the changes that have occurred in other areas, this area remains largely unchanged (Ryan & Pratt 2014). The article authors state that the secretary gives instructions on the payment for the delivery of flowers to the village (Ryan & Pratt 2014). In response to this issue, the company owners confirm that there was no irregularity in the process of delivery and purchase and that the couple did not play an active part in the company (Ryan & Pratt 2014). The article highlights the changes that have taken place in the said village, together with how these changes should have ensured no irregularity or disclosure problem.
Ethical Issue
The ethical issue that is identified in this article is the conflict of interest in organisations. Organisations depend on each other. They require an orderly manner interaction. The interaction between organisations and institutions should lead to the mutual benefit of the partners and all the involved parties. Conflict of interest is a common problem that affects organisations, especially in the tendering process where an organisation is required to provide another with the necessary products or services (Felo 2001). When one organisation engages in the provision of services to another, the rules of engagement dictate that the best rate should be offered.
The management in organisations is involved in the determination of the best companies to interact with. The pricing of goods and services is one of the major determinants of interactions between companies and organisations in the business setting. A conflict of interest occurs where individuals who are affiliated with one organisation favour another organisation where they are also affiliated in terms of issues such as tendering and commercial interactions (Felo 2001). In the above case, the public officer is affiliated to another organisation that is charged with the delivery of flowers to the public office. The official has not been declaring the conflict of interest. This situation has happened for a long period.
Stakeholders
Stakeholders in this issue include the society in the South Suburb of Illinois, the Heather House Florist, Ronald Brunning, and the mayor. The public is the main contractor, while the mayor is the administrator. The impacts of the conflict of interest on the public include obtaining substandard services through a process that was not competitive. For many years, the supply of flowers to the public authority in the area had been the preserve of one organisation, which may not have offered the right price for the merchandise. According to Felo (2001), one of the commonest effects of undeclared conflicts of interest is the loss of significant amounts of money.
The future effects of the issue on Ronald Brunning, who owns the flower company and is the zoning administrator in the village include the possibility of a legal suit. The law in Illinois details the consequences of undeclared conflict of interest. Brunning might be prosecuted if investigations show that this observation was the case (Felo 2001). The mayor might be affected in that his office can be instigated in the matter. The secretary is Brunning’s wife, who was responsible for the links between the two institutions. Therefore, the office may be asked to take responsibility for the losses that may have occurred.
Discussion
Conflict of interest is one of the ethical issues that influence organisations, especially public institutions (Blodgett, 2011). Individuals in public office may be affiliated to other organisations, thus favouring them (the organisations) in their interaction with the public institution with which they work. Many laws exist in the prevention and management of this ethical issue. However, these laws are dependent on the region and country (Liao 2013). According to the OECD (2005, p. 13), ‘conflict of interest involves a clash between the public duty and the private interest of public officials in which the officials’ private-capacity interest can improperly influence the performance of their official duties and responsibilities’.
Many public institutions have a policy that dictates the conflict of interest in terms of definition, statement, and/or how the issue may be managed (Liao 2013). This situation is mainly displayed in the code of ethics in these institutions. The use of public office to gain a private advantage is punishable by laws in most countries. This situation has often happened in many parts of the world (Fogel & Friedman, 2008). According to Fogel and Friedman (2008), conflict of interest may transform into corruption if left unchecked. Different tests can be applied in the identification of conflicts of interest in organisations, with most of them providing useful results.
The solutions provided in the article on the existing conflict of interest include the introduction of new laws to safeguard public interests and/or prevent conflict of interest in public organisations. Although there is an existent code of ethics in the organisations in question, the individuals involved in keeping them are apparently not doing so. The fines that exist for such actions are small, and not enough to dissuade individuals against the ethical issue. The other solution that is suggested includes the provision of adequate supervision and recording of information pertaining to disclosure of conflict of interest.
The solutions provided by the authors may be helpful in the management of conflict of interest in public institutions. However, they are also inadequate. There is a need for the development of a new code of conduct for the public institution in question since the existing one has been found ineffective (Beeri, Dayan, Vigoda-Gadot & Werner 2013). The development of a code of conduct ensures that the interests of the public in this institution are guarded. The other use of a code of conduct is the development of institutional order (Boatright 2013). The public institution in question requires the accountability of all officers that are entrusted with various activities and responsibilities. This situation may be emphasised through the development of laws that govern the interaction of these officers with other institutions.
The other solution that can ensure that the organisation gets the desired results without the existence of an undeclared conflict of interest includes the development of laws on accountability and transparency. Training is also an important part of managing ethical issues in organisations (Floyd, Xu, Atkins & Caldwell 2013). The authorities that are discussed in the article should put in place programmes to educate employees and other stakeholders on ethical issues such as the declaration of conflict of interest. This move will contribute towards the reduction of these cases and/or prevention of future episodes.
Second Article
The second article was published in the Huffington Post Canada on 7 July 2013. This article focuses on workplace corruption and secrecy. It is titled Canada’s Business Ethics Under Scrutiny: 4 in 10 have witnessed Wrongdoing. The article is also available on the internet in the link.
Overview
The article is a report of the results of the survey that indicates that workplace corruption in Canada is high. In this article, the authors report that in every 10 employed Canadians, four of them have witnessed some form of wrongdoing at the workplace (Huffington Post Canada 2013). Some of the examples of wrongdoing that have been reported include fraud, manipulation of financial records and results, and bribery (Huffington Post Canada 2013). Most of these acts go unreported, with the employees preferring to keep them to themselves. The author also states that the poll was conducted by Ipsos-Reid that reported that 9% of the participants had witnessed corruption and bribery at the workplace (Huffington Post Canada 2013). 11% of the participants reported witnessing manipulation of financial records and results, while 13% of the participants reported conflicts of interest at their workstation (Huffington Post Canada 2013).
Just like in many parts of the world, the author reports that the commonest form of ethical issues reported in the survey was a misuse of organisation property where 28% of the respondents had witnessed or participated in the same (Huffington Post Canada 2013). The key issue in the article is the finding that only 48% of employees reported the wrongdoing despite the high proportion of workers who had observed the wrong practices in their organisation (Huffington Post Canada 2013). The author reports the factors behind the high incidence of misconduct in Canadian workplaces as resulting from goal-oriented work. Most of the employees report that they can do anything to achieve their goals.
The author reports a significant proportion of Canadian workers who have to compromise on their ethics to attain necessary results at their places of work. The other reason behind the high incidences of unreported ethical issues at the workplace is the apparent lack of faith in people who are responsible for resolving these issues and the fear of retaliation (Huffington Post Canada 2013). The author finishes with the suggestion that organisational leaders in the country should re-evaluate the management of ethical issues. The reasons for rectification include the expected results of poor financial performance and the tarnishing the organisation’s reputation (Weber & Wasieleski 2013).
The other solution that is provided in the article is the development of rules that are strict in the relevant organisations, especially those that are largely affected. The authors state that the efforts to report wrongdoing in organisations were hindered by the poor relationship that exists between the employees. Some of the employees are unable to report their colleagues due to their positive relationships and the possibility of benefitting from the deals. The result of this situation is that the issues go unreported. This observation proves that organisations should not just rely on their employees to report such cases. Conversely, the management should also be proactive in investigating the occurrence of such issues.
Ethical Issue
The ethical issue under discussion in the article is workplace corruption and secrecy. According to Weber and Wasieleski (2013), organisations face the threat of corruption constantly because of the many interests that are demonstrated by individuals who work in this region. Many organisations have reported cases of corruption within their interactions. Most of them have developed a code of ethics that determines the steps taken in the prevention and punishment of this offence. Workplace corruption is a common occurrence in all organisations (Weber & Wasieleski, 2013). However, the measures that are used to detect and punish the offence are dependent on the cooperation of the employees and other stakeholders (Weber & Wasieleski 2013).
In the article, corruption and other ethical issues are not reported to the relevant authorities in the institution. The reasons that are provided for this situation include the fear that the employees have on retaliation measures that the affected individuals might depict. According to Mann, Taber, and Haywood (2013), most employees demonstrate an apparent lack of trust in individuals who are entrusted with the management of these problems. Mistrust in organisations may hinder interaction between the individuals who are in leadership positions and other employees (Mann, Taber & Haywood 2013).
The issue of workplace corruption is not new since many individuals have been disciplined for participating in the same evil. In developed nations such as Canada, the prevalence of corruption at the workplace is not expected to be high. Hence, the article is of importance to the Canadian authorities. The article focuses on the failure by the employees and other stakeholders in the organisational setting to report the issues of corruption as well as other issues that are highlighted in the article. Mistrust of the authorities that are supposed to tackle the discussed issues is apparent, including the possibility of the individuals being involved in corruption and other issues. The results of such interaction include the propagation of unwanted practices in the organisation.
Stakeholders
Stakeholders in this particular ethical issue include corrupt employees, other employees who witness the acts of corruption and other unethical issues in the organisation, and the individuals who are charged with the keeping of the code of ethics. The management is also a key stakeholder in the ethical issues since they are responsible for the development of rules and regulations in the organisations and/or developing structures for application of these policies (Hannafey & Vitulano 2013).
The ethical issue should affect all stakeholders in the future. Corrupt acts that are propagated by some of the employees may lead to a reduction in the profitability of the organisation. Ethical issues such as those discussed in the article also contribute to the negative publicity for the organisation. Hence, they damage their reputation (Mann, Taber & Haywood 2013). Therefore, the organisation may end up losing significant revenue because of such issues. The management department, which is responsible for the development of the code of ethics, may also be affected in that it may face disciplinary actions from the relevant authorities.
The effects of unreported cases of corruption in organisations also include a compromise on the operations of the company. Many individuals who are responsible for the management of ethical issues in organisations are described as being unapproachable in the article. A possible effect is that the issues will persist for as long as these individuals are unable to offer adequate solutions to the problems. The other likely effect is that the organisation is expected to have increased legal issues, including the possibility of court cases. Individuals who feel that they are treated unfairly in these organisations have the right to seek legal advice since unfair treatment is potentially damaging to the organisations.
Discussion
The article discusses some of the issues that are relevant in relation to workplace ethics. Corruption is a major issue that affects the performance of organisations. Companies lose billions of dollars every year because of this misdemeanour (Hollander 2013). Different measures that are in place to prevent corrupt practices at the workplace include the provision of ethical standards and a code of conduct in organisations. The other measure that is used in the prevention of corruption is the provision of laws that to control the existence of corruption in the workplaces. Governments have developed institutions and laws that are meant to curb corruption not only in public institutions but also in the private ones (Beenen & Pinto 2009).
To ensure the effectiveness of the measure that has been implemented to control these ethical issues in organisations, there is a need for collaboration between authorities, the management, and the employees (Warren, Gaspar & Laufer 2014). Beenen and Pinto (2009) observe that these measures are usually ineffective when they are developed without support from the employees. This situation is evident in the case discussed in the article where employees find it hard to report the unethical acts to the authorities.
The main problem is the lack of trust between the individuals involved in the reporting of unethical issues to the authorities. Confidentiality is important in organisations to facilitate the correction of such ethical issues. The authors recommend the provision of adequate feedback to ensure that the employees trust the officers to whom they should report the issues of ethics in their organisations. For such cases as corruption to be reported at the workplace, there is a need for employers to provide an environment that facilitates for the same (Martin, Johnson & Cullen 2009).
Communication is an important part of reducing the problem in organisations. The management should ensure that it encourages employees to report any issue such as corruption. It should ensure that employees are assured of confidentiality and security. In many organisations, employees who witness wrongdoing are afraid to report the same out of the fear of victimisation and retaliation such as the surveyed Canadian organisations. Organisations can correct this matter through the provision of feedback mechanisms that guarantee the safety of the employees. Retaliation may be prevented through ensuring that the culprits are adequately punished.
Workplace corruption may also be prevented through adequate training of the employees. According to Beenen and Pinto (2009), some of the issues that employees should be trained to include their interaction with the other individuals in the organisation. Communication is vital in this interaction. Employees should be encouraged to be in touch with their colleagues to ensure that they are able to report the corruption issues in the organisation. For any organisation to create an environment of trust between the management, employees, and other stakeholders, it is necessary for the management to develop an adequate policy. This policy needs to highlight the expected performance of the employees and the consequences of every unethical action that they take.
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