Managing Ethical Issues In Contemporary Organisations

Overview of the Report

In the modern day business contemporary organisation are facing lot of issues. Ethical issues are most important and difficult to handle. These ethical issues can be related to different aspects i.e. in terms of commercial, economic, environmental and social issues (Shapiro & Stefkovich, 2016). It is crucial that company understands these issues and work upon it. Use of ethical framework can be helpful for managing these issues appropriately. This part of report identifies the issues and suggests the appropriate ethical framework that can be helpful in managing the issues.

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Multinational organisations are facing huge amount of challenges related to the discrimination at the workplace. This is due to the fact that most of the employees are from different cultural backgrounds and hence discrimination is very much likely. This is a challenge for the company and the environment at the workplace as it is harmful for the teamwork culture (Fahie, 2014). Providing equal opportunities to both men and women and maintaining diversity is an issue for the organisation. Along with this the compensations and benefits given to the employees must be in equal terms and should always be done as per their performance. Glass ceiling has been one of the biggest issue in the organisation and needs to be removed immediately. Discrimination also exists in terms of selection and recruitment procedures as the staffs from particular community often get selected easily as compared to others. This is unethical in nature and needs to be eliminated.

Among different ethical frameworks, it is essential to use the Consequentialist Framework. This is because Consequentialist framework suggests focusing on the effect that will be caused due to action done (Crossan, Mazutis & Seijts, 2013). This framework rejects such practices as it yields negative results in the firm. Since discrimination can lead to higher employee turnover or negative environment at the workplace hence it must be removed. Using this framework manager can easily predict the results if such practices does not get removed from the base. Consequentialist framework suggests about the type of stakeholders that can get affected due to this issue at the workplace. It also suggests moulding the practices in a manner that best results could be obtained from it as it is what actually matters. Discrimination is wrong practices if done in any aspect of the business and hence its outcome must be evaluated properly. This framework is justified as it suggests the nature of the results that is yielded by improper diversity management.

Ethical Issues in Contemporary Organisations

This is an issue that is attached with most of firms from past several years. Companies are exploiting the resources very rigorously. The over usage of resources has created problems related to sustainability (Rogerson, Gottlieb, Handelsman, Knapp & Younggren, 2011). This is generally done by the organisations to stay ahead in the market at the same time fulfilling the demands and needs of the market is essential. Firms have not made strategic planning for long period of time and hence they are facing the challenges related to environment. Due to over exploitation of resources it was found that large numbers of environment related issues have emerged. The waste that is generated by the organisation needs to be managed but due to improper management of the resources, the issue has become bigger. The over exploitation of resources have also resulted due to the unskilled labourers and improper use of technology especially in the small and medium sized organisation. In order to increase the production capacity companies are exploiting their raw materials at highest of levels.

In order to face this issue the ethical framework that can be useful in this regards is the Duty framework. As this framework suggests focusing on the obligations and duties in a difficult situations hence can be very much effective in addressing the above issue. Companies have not cared for the environment and hence it has created environment related problems. Duty Framework defines that doing right thing is always an obligation and hence companies should look at the challenges related to over use of resources as they are harming the environment (Gastmans, 2013). Companies should act according to the moral rules and duties irrespective of the fact that they have to achieve maximum profits from their business.

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From this section, it can be concluded that modern day organisations have to face large amount of ethical issues. Discrimination at the workplace reduces the productivity of the person and results in high employee turnover. In order to address this issue company needs to take use of Consequentialist framework. This framework stresses on changing the results hence is very appropriate for this issue. Along with this over exploitation of resources is another big issue in this regards. Taking use of the duty framework can be beneficial for the company as it concentrates on doing right things irrespective of the outcome they generate.


Crossan, M., Mazutis, D., & Seijts, G. (2013). In search of virtue: The role of virtues, values and character strengths in ethical decision making. Journal of Business Ethics, 113(4), 567-581.

Consequentialist Framework for Managing Discrimination and Diversity

Fahie, D. (2014). Doing sensitive research sensitively: Ethical and methodological issues in researching workplace bullying. International Journal of Qualitative Methods, 13(1), 19-36.

Gastmans, C. (2013). Dignity-enhancing nursing care: a foundational ethical framework. Nursing ethics, 20(2), 142-149.

Rogerson, M. D., Gottlieb, M. C., Handelsman, M. M., Knapp, S., & Younggren, J. (2011). Nonrational processes in ethical decision making. American Psychologist, 66(7), 614.

Shapiro, J. P., & Stefkovich, J. A. (2016). Ethical leadership and decision making in education: Applying theoretical perspectives to complex dilemmas. Routledge.

The ethical framework mentioned in the above section explains the duties of the person in different situation. Different aspects of business will have different kind of effect on my behaviour, personality. This section elaborates about the effect of the ethical norms, corporate governance, culture and professional ethics on the behaviour of me as a worker and individual. It elaborates the changes in the behaviour that will be brought by ethical framework that was discussed above. At last it explains about the way in which ethical codes of conduct can be helpful in creating ethical culture in the firm.

The above section explains about the two major issues that are faced by any organisation first the problems in managing diversity like following practices such as discrimination on the floor. This ethically wrong and result in the situation such as negative environment at the workplace and poor performance of the employees. It has also resulted in high employee turnover. The use of Consequentialist framework is very much effective as it suggests concentrating on the results that is produced by any action. Along with this another major problems that is faced by the company is that in order to achieve higher profits margins and growth, companies have over exploited their resources. This has not only created problems related to sustainability but also creates problems related to environment. The use of duty framework could be helpful in addressing and resolving this problem as it suggests focusing on the actions which in return suggests taking use of resources in a sustainable manner (Dubnick, 2012).

Both the issue diversity and discrimination at the workplace and the over use of resources are affecting the behaviour of each and every employees. The use of framework has suggested me that I need to work in a team irrespective of the fact that people are from different cultural backgrounds. The Consequentialist framework suggested me that work should only be done checking the outcomes that it produces. The work that results in hurting some or the other stakeholders must not be done. On the other hand duty framework taught me that I should check everything before doing any task. It is my duty and obligation to work according to the moral principles and ethics. Both the framework teaches that actions and consequences both are essential so as to do things ethically.

Duty Framework for Managing Resource Exploitation

Professional ethics supports the actions that are done by me and the way in behave in an organisation. My Professional ethics is a guideline that shapes my duties hence it has a direct influence on the way I behave. For instance the professional suggests me to do things in the best interest of the company and my team. It also teaches me that I should do things checking what might be its consequences.

The behaviour of the senior management has a great influence on the people that working under them. It is found that people generally follows what management does. If I will see that people at the top of mine at the workplace is doing things ethically then it will pressurise me to do things accordingly. For example once my management team was not looking at the ethical norms of the company suddenly I also started to do the same. This made the situation worse.

The way in which my company has made rules and regulations influences my behaviour (Crane & Matten, 2016). As I have seen that a slight change in the corporate governance rules had a direct influence on my behaviour. I also saw that leniency in the ways HR managers have implemented those rules had also affected my behaviour. At times I have seen that I and my colleagues have acted in discipline because of the policies that is made by the organisation. Policies of my firm prohibit me to follow any type discriminatory practices at the workplace.

Culture in any organisation has a direct impact on the way I behave in the organisation (Ruiz?Palomino, Ruiz?Amaya & Knörr, 2011). Since the culture of the company is to work as a team hence I started to work as a team member. Previously this was missing in my behaviour. We also have a good communication culture at the workplace where we discuss the problems with each other. This has also shaped my behaviour where I do keep things in mind rather I discuss it with my senior members or the team mates. Since strict professional standards are followed by my company hence I have also behave in a professional manner and do things that are specified in the company guide for behaviour and professional ethics.

Ethical code of conduct is very much helpful in creating an ethical culture of the workplace. This is because it is a clear set of rules and guidelines that suggest what are the do and don’ts in the organisation (Resick, Hargis, Shao & Dust, 2013). It addresses all the factors that might actually lead to unethical behaviour. It also suggest about the punishments that will be given if the ethical norms are violated. It also explains about the roles and responsibilities of each individual in bringing this ethical culture at the organisation.


From this part of the report it can be stated that ethical framework has the capability to change the behaviour of the individual. At the same time professional ethics, behaviour of the senior management, corporate governance, culture all these have a great impact on my behaviour as an employee. Ethical code of conduct is very much helpful in bringing the ethical culture within the organisation as it defines the roles, responsibilities, dos and don’ts of the organisation. This acts as a guide for the ethical behaviour of the employees.


Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.

Dubnick, M. (2012). Clarifying accountability: An ethical theory framework. In Public sector ethics (pp. 78-92). Routledge.

Resick, C. J., Hargis, M. B., Shao, P., & Dust, S. B. (2013). Ethical leadership, moral equity judgments, and discretionary workplace behavior. Human Relations, 66(7), 951-972.

Ruiz?Palomino, P., Ruiz?Amaya, C., & Knörr, H. (2011). Employee organizational citizenship behaviour: The direct and indirect impact of ethical leadership. Canadian Journal of Administrative Sciences/Revue Canadienne des Sciences de l’Administration, 28(3), 244-258.