Role of ethical decision-making in business- a Case study of Peter Allen

Role of ethical decision-making in business- a Case study of Peter Allen

Specific dilemmas of Peter

As a customer service representative working in the advertisement industry, Peter has faced a considerable dilemma. His main job duties include selling advertisement packages at a high rate to the small businesses. However, he showed the signs of an ethical individual and was rather defensive of the idea that meeting sales target is the sole purpose of an individual in his position. He was aware that the saturated state of the San Francisco market is going to affect the business outcomes. He was also aware that small business firms used to spend thousands of dollars on meaningless advertisements as they were hopeful about the internet boom of 1999. Nevertheless, he wanted to guide the business owners so that they can make the right decisions rather than getting trapped and making huge investments. Despite the constant pressure of meeting the sales targets, Peter acted otherwise. Although, in the beginning, stages, he was rather confused as he was completely new to the industry. Rising competition within the advertisement industry was a serious issue. On one hand, he is obligated towards his boss, and on the other hand, he felt responsible for his actions towards his customers. Nevertheless, along with his team, he managed to influence the top executives to cut down sales targets.

Existing virtues of Peter and the motivating factors

After analyzing Peter Allan’s case, it can be stated that as an individual, he understands the value of acting morally. He completely believes in virtues such as loyalty, honesty, truthfulness, empathy and responsible actions. He was less motivated by the thought of making money and more concerned with the thought of delivering value. He understood that in the long-term, this decision would be fruitful. Strengthening the relationships with customer, as in this case, the business owner is more valuable than achieving a certain “sales target” to impress his boss. Again, the key motivating factors in the case of Peter was conducting business ethically and focusing less on profit-making. His decisions were influenced by his personal beliefs and moral obligations. Individuals face a dilemma because they are unaware of the difference between “good” and “bad” actions (Vyakarnam et al., 1997). In most cases, even after being aware of the consequences, individuals tend to take bad actions as they are motivated by personal gains. Nevertheless, in Peter’s case, it has been observed that he was aware of the consequences of making decisions based on self-interest. Hence, he acted the other way round and ensured success ethically.

Risks encountered by Peter

In Peter’s case, it was observed that he held the position of a sales representative, and he was solely hired for increasing sales of the firm. However, his decision to act otherwise and consider the welfare of customers has been a risky endeavor as he could have been on the verge of losing his job. Despite the existence of an “ethical code of conduct” in business, firms hardly consider acting according to ethics because ethics and business might be a recipe for disaster (Zarkada‐Fraser & Fraser, 2001). Businesses are set up for making profits and compromising this factor can be a real deal-breaker. Peter continued to face career-related risks as his expectations could have backfired. Nevertheless, he managed to convince the top executives to reconsider targets in the San Francisco market.

An outline of the factors behind moral decision-making

Moral decision-making is often guided by a range of factors. These have been outlined below-

• Past experiences– It is one of the relevant factors because, based on the experiences, an individual understands the consequences of an action. If he or she had committed something wrong and faced the negative outcomes, then the chances of taking the right decisions in the next phase of life increase.
• Avoiding biases- A morally-ethical person would be aware of his or her biases. Biasness often leads to wrong decision-making (Bagozzi, Sekerka & Sguera, 2018). Therefore, ethical individuals tend to avoid biases.
• Upbringing- An individual’s upbringing influences his or her behavior in the long run because it shapes the perception. The moral decision-making process would be less complicated for those who have been brought up with good values and sound judgments.
• Committed attitude- Lastly, commitment to ethics is a vital factor because moral decisions can be fruitful after taking a committed approach.

References

Bagozzi, R. P., Sekerka, L. E., & Sguera, F. (2018). Understanding the consequences of pride and shame: How self-evaluations guide moral decision making in business. Journal of Business Research, 84, 271-284.

Vyakarnam, S., Bailey, A., Myers, A., & Burnett, D. (1997). Towards an understanding of ethical behaviour in small firms. Journal of Business Ethics, 16(15), 1625-1636.

Zarkada‐Fraser, A., & Fraser, C. (2001). Moral decision making in international sales negotiations. Journal of Business & Industrial Marketing.