Amrut is a Director (Finance) of a Mutual Fund Company. The Board had requested Amrut to work towards introducing effective internal control systems and enhance inter-departmental and stakeholder relationship. He was giv

CS Professional · Multidisciplinary Case Studies · PYQS · June 2021
Amrut is a Director (Finance) of a Mutual Fund Company. The Board had requested Amrut to work towards introducing effective internal control systems and enhance inter-departmental and stakeholder relationship. He was given the liberty to choose his own team for this work. He recruited a deputy, Kalpa, who, was technically competent but seemed to have attitudinal issues. Some of his team members informed him, that Kalpa prefers to hold back information and her behavior is at times rude towards the team. However, no staff has formally complained or yet left the organization. As such there was friction between Amrut and Kalpa. She seems to ressent any suggestions that he provides and is not open to feedback. She has implied, several times, that she feels she is being unfairly harassed and bullied. Amrut discussed this situation informally with the Managing Director. Although he has found Kalpa awkward and defensive, and he knows that another director also considers her somewhat abrasive, he has identified nothing that would warrant disciplinary action. Kalpa informs Amrut that she has been shortlisted for a role as Director (Finance) at another Mutual Fund house. Quietly, Amrut felt elated at the prospect that she might be leaving. The following day he receives a letter from Kalpa's prospective new employer. Kalpa had given his name as referral without informing him. The letter asks questions concerning the ability of the candidate to work in team, to motivate volunteers and to accept advice. For several reasons, Amrut would very much like Kalpa to be offered the position with the other employer. However, he is concerned that an honest response to the enquiries would jeopardize his desire of keeping her out of the organization, as such a response can only be negative. Based on the above fact, answer the following: (a) Explain in detail what is the dilemma Amrut is going through.

Answer & Explanation:

Amrut seems to be going through an ethical dilemma. An ethical dilemma is a moral situation in which a choice has to be made between two equally desirable or undesirable alternatives. It can be understood as a dilemma (ethical paradox or moral dilemma) being a problem in the decision-making process between two possible options, neither of which is absolutely acceptable from an ethical perspective. Dilemmas may arise out of various sources of behaviour or attitude, as for instance, it may arise out of failure of personal character, conflict of personal values and organizational goals, organizational goals versus social values, etc. A business dilemma exists when an organizational decision maker faces a choice between two or more options that will have various impacts on (i) the organization's profitability and competitiveness; and (ii) its stakeholders. In situations of this kind, one must act out of prudence to take a better decision. The ethical dilemma consideration takes us into the grey zone of business and professional life, where things are no longer black or white and where ethics has its vital role today. A dilemma is a situation that requires a choice between equally balanced arguments or a predicament that seemingly defies a satisfactory solution. Examples Some examples of ethical dilemma include: Taking credit for others' work Offering a client a worse product for your own profit Utilizing inside knowledge for your own profit Ethical dilemmas are extremely complicated challenges that cannot be easily solved. Ethical Dilemmas in Business Ethical dilemmas are especially significant in professional life, as they frequently occur in the workplace. Some companies and professional organizations adhere to their own codes of conduct and ethical standards. Violation of the standards may lead to disciplinary sanctions. Almost every aspect of business can become a possible ground for ethical dilemmas. It may include relationships with co-workers, management, clients, and business partners. People's inability to determine the optimal solution to such dilemmas in a professional setting may result in serious consequences for businesses and organizations. The situation may be common in companies that value results the most. Fundamental Ethical Issues: In the present case, Amrut is going through fundamental ethical issue. The most fundamental or essential ethical issues that businesses must face are integrity and trust. A basic understanding of integrity includes the idea of conducting business affairs with honesty and a commitment to treating every customer fairly. When customers think a company is exhibiting an unwavering commitment to ethical business practices, a high level of trust can develop between the business and the people it seeks to serve. In order to solve ethical problems, companies and organizations should develop strict ethical standards for their employees. Every company must demonstrate its concerns regarding the ethical norms within the organization. In addition, companies may provide ethical training for their employees.

Topics: Business Ethics / Corporate Governance

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