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Homework answers / question archive / In business, you may hear the statement “It may be legal, but its unethical”
In business, you may hear the statement “It may be legal, but its unethical”. Provide an example where a manager may be faced with a situation that is legal but may be unethical and how should that manager handle that unethical situation using one of the four ethical dilemma approaches? Explain the in detail your rational.
Answer:
One of the most straightforward examples for the above can be represented by the scenario where the company has to layoff the employees due to reduced demand, requirement, or in time of crisis. While the above actions are legal and the company has the right to let go of the employees, the work in itself can be considered unethical because the company was at fault for not being able to manage the risk appropriately. Now, there are several ways we can go about here, but, when we consider the utilitarian framework of ethics, we can say that it relates to the understanding that the company owes it to their employees to think in their best interest as well. Utilitarianism is the most accessible form of ethical understanding where the most number of individuals are benefitted from the decisions and actions. Therefore, the company can try to implement a change such as job rotation, working extra shifts, working overtime to increase productivity while managing the aspect of input to the output. The company can also cycle the shifts where the employees are paid according to the work they do, and they do not have to work when the production systems are idle, or when the demand is less than the production output.
Following such a policy would be in the best interest of the employees and the company as well. Since they do not have to invest in recruitment after this phase has passed while the employees retain their jobs as well, at a reduced salary or the cost of increased work output.