The Everlane Firm’s Ethical Decision-Making Report

Introduction to the Ethical Decision-Making Model

A business ethos is a cluster of principles that an organization employs to ensure that managers and employees behave professionally in their workspace. Similarly, an ethical decision-making rubric is a multifaceted framework that management uses to convey these standards to their organization and verify that they are upheld. Ethical decision-making is one of the most difficult processes managers encounter, and it often necessitates the use of specialized talents. In some instances, the procedure entails the application of prior expertise as well as a thorough examination of facts Heyler, S., Armenakis, A. and Collier, Y. (2018). In this paper, Everlane, a San Francisco-based clothing company, intends to incorporate the seven steps from the model to escape an ethical dilemma. A breakdown of individual tenets in the rubric and how they can be employed to solve the company’s current quandary forms the basis of discussion for this paper.

Assessment of the Situation

In order to understand the dilemma and define the problem, moral imagination has been used to explore the ethical gaps that exist at Everlane. This process involves highlighting the issues at hand, segmenting the persona, and identifying the channels and platforms affected by the predicament, it’s exact timing and the reason for its occurrence. The problem is then criticized on the basis of who, why, where, when, and what aspects, as highlighted below.

Further Reading

In this context, the enterprise is facing criticism and backlash − particularly from a number of former employees who accuse it of being anti-black, anti-union, and having a toxic internal culture. The predisposing factor for this problem is the retrenchment that happened in March 2020, when the company had to send home 200 employees as a result of the COVID-19 pandemic Coskun, A. & Fayes, K. (2020). Coincidentally, 42 out of 57 workers retrenched were from the customer experience team − a group that had announced the previous November that its members intended to unionize Drašček, M. and Andolšek, D. (2021). Even though Everlane stated that its layoffs were in response to the pandemic, the affected employees insist that the approach directly targeted them so as to jeopardize their coalescence. As a result, the company’s reputation has been tarnished, thus affecting the morale and output of the remaining employees. The section below highlights some of the retrenchment implications for the company’s accreditation.

Assumptions and Worldviews

Everlane faces severe defamation as a result of the accusations regarding its unprincipled and harmful work environment. Black models and people of color claim to be described using insensitive and inappropriate terms, making them feel that their personal space has been violated. In addition, new employees allegedly accuse the company of impertinent inception Loe, W. and Mansfield, P. (2019). These issues have been exacerbated by a lack of formal channels for employees to communicate and escalate concerns about harassment or discrimination. The section that follows highlights some of the policies under the third doctrine of the ethical decision-making model that the company can adopt to counteract these allegations.

Principles, Duties, and Care Requirements

The company should formulate strategies that will ensure the management is receptive and responsive to employees’ needs. This can be done through revising employees’ rights, taking into account their essential humanity and ensuring they are not simply used as a means to an end, identifying any conflicts in duties among departments, upholding truthfulness and integrity, and creating channels to be used for addressing justice needs.

Policy Formulation Criteria

The aforementioned policies and interventions must meet the following capabilities:

1. Combining logic and intuition in the formation and application of moral principles to situations where ethical challenges arise.
2. Elaborating how ethical decisions are made naturally rather than by defining sentimental ways of making choices Zhilla, F and El-Khoury, M. (2018). For instance, the retrenching of a majority of employees from one docket can illustrate a descriptive rather than a prescriptive company strategy.
3. Evaluating each alternative to identify the likely positive and negative consequences before implementation.
4. Providing a protocol and a helpdesk so that employees can get a comprehensive assessment of policies, laws, and universal values when they need it before making a decision. The management, on the other hand, should enhance their awareness and sensitivity to ethical issues that may arise and devise effectual methods to resolve relevant issues before they can escalate to the limelight.

Process, Outcomes and Consequences

Under this tenet, the company should identify possible solutions to the issues at hand (defamation and racial accusations), such as partnering with racism accountability organizations, opening a seat on the board for a black member and adding him to the company’s senior leadership. In addition, the entire company’s fraternity should undergo anti-racism training to teach colleagues how to work comfortably with people from diverse ethnic backgrounds. Some of the benefits associated with this training are discussed in the section below.

Impacts and Expectations

The consequences of these actions on employees and key stakeholders will include, but are not limited to:

1. Improved staff morale and positive work ethic since everyone has an equal right to express their views and ideas. The decisions are not biased on the subject but are created with their participation Paik, Y., Lee, J. and Pak, C. (2021). Employees’ sense of loyalty and belonging to the company reduces instances of conflict between staff and management. As a result, employees find it easy to accept the decisions and stay committed to their respective roles.
2. Individuals working in the organization can use decision-making to convey their ideas on an equal footing. Everyone will enjoy an equal right to participate in the management of the organization. This fosters a spirit of teamwork and solidarity among workers since they all work together to achieve the same company’s objectives, thus improving the organization’s overall productivity and reinforcing its general structure.

Character Factors

There are many positive attributes that will accrue to Everlane if it pays more attention to its employees’ welfare and overall well-being. For example, the volume of sales would increase as a result of proper understanding and interaction among its workforce. However, this can only be achieved if the company upholds the essential virtues that confer dignity on its workers, irrespective of their ethnicity Onu, D. and Kirchler, E. (2019). While identifying the issue and obtaining credible resources to fix it are critical, any recommendations on how to deal with it should be interpreted through the lens of the manner in which it may impact the existing employees. The section below discusses the best approach among the afore-cited alternatives that can be adopted by Everlane in order to solve the existing crisis.

Comprehensive Assessment

Weighing all the considerations, the best measure for this specific situation would be to re-hire the former employees since they had played a key role in the company’s success. However, there is an option of getting a new batch of trained staff with stronger personalities in addition to the required skills to fill the vacancies in the organization. In the process of evaluating the two options, the board should consider opinions from its current workforce. In addition, it should not perceive unionization as an occupational hazard but rather a platform through which workers can exchange relevant ideas to improve their performance and address personal issues affecting them Coskun, A. & Fayes, K. (2020). To minimize prejudice, the board will be required to consult with other businesses in the textile industry. During the decision-making process, it should make sure that employees understand that the chosen course of action is based on substantial studies and research rather than management’s independent ideology.

Justification of the Decision

Considering the feasibility of the decision, Everlane may face a negligible challenge because it is not guaranteed that all the workers will be willing to associate with the company for a second time. Workers who were racially profiled may turn down invitations to engage with the firm McDevitt, R. and Tromley, C. (2019). However, the company can issue incentives such as pay raises and, at the same time, guarantee that racial segregation will no longer be a challenge. This decision-making conclusion reached is based on the theoretical fairness approach. It does not rely on workers’ recommendations but instead goes further to explore alternative principles and options at the company’s disposal. In addition, all shareholders’ wishes were taken into account to guarantee that the workforce was not unjustly impacted. The decision is fair and ethical since the interests of all stakeholders were considered before settling on the final plan.

References

Coskun, A. & Fayes, K. (2020) ‘Ethical decision-making in business organizations and daily routine: business & management studies’, The International Journal, 8(4), pp.37-49.

Drašček, M. and Andolšek, D. (2021) ‘Moral pragmatism as a bridge between duty, responsibility, utility, and virtue in managers’ ethical decision-making’, Journal of Business Ethics, 172(4), pp.803-819.

Heyler, S., Armenakis, A. and Collier, Y. (2018) ‘A qualitative study investigating the ethical decision-making process in real business world: a proposed model’, The Leadership Quarterly, 27(5), pp.788-801.

Loe, W. and Mansfield, P. (2019) ‘A review of empirical studies and research assessing the ethical decision-making process in business’, Journal of Business Ethics, 25(3), pp. 185–204.

McDevitt, R. and Tromley, C. (2019). ‘A model of ethical decision-making as employed by managers and business shareholders: The Integration of Process and Content’, Journal of Business Ethics, 73(2), pp.219-229.

Onu, D. and Kirchler, E. (2019) ‘The dynamics of internalized and extrinsic motivation in the ethical decision-making of small business owners and enterprises,’ Applied Psychology, 68 (1), pp. 177–201.

Paik, Y., Lee, J. and Pak, C. (2021) ‘Convergence in international business ethics and principles: a comparative study of ethical philosophies, thinking styles, and ethical decision-making between US and Korean managers’, Journal of Business Ethics, 156(3), pp.839-855.

Zhilla, F and El-Khoury, M. (2018) ‘Conceptualizing the determinants of ethical decision-making in business organizations and their impact on business success’, Problems and Perspectives in Management, (4), pp. 30–41.