Introduction
In business and finance, many ethics issues are controversial and require detailed consideration. The common ethical violations may involve insider trading, project financing, or stakeholder interest (Hunjra, 2018). The case study of Cyberchamp Inc. presents an assistant finance manager Olive Earle faced with a choice related to her decision on a capital project proposed by the company’s CEO, Nadine Kowkabany. This paper aims at discussing the factors to consider while resolving ethical issues and making recommendations for the assistant finance manager in the given scenario.
Olive’s Ethical Dilemma
Based on the case study data, Olive is facing an ethical dilemma since she is put in a situation that requires her to act against her personal values and morals or risk losing her job. Several factors from the given scenario indicate that the employee experiences a conflict. In particular, Olive requires more time for a qualitative analysis of Mrs. Kowkabany’s proposal than she is given. Besides, the rumors suggest that NetWork owners are the CEO’s good acquaintances, which involves personal interest and complicates the employee’s choice. An independent appraiser’s report findings show that the investment is likely to be a wrong strategic decision for Cyberchamp. Finally, Mrs. Kowkabany’s pressure and comments on Olive’s pay add to the factors mentioned above and indicate that the employee is facing an ethical dilemma.
Recommendations on Resolving the Ethical Issue and Rumors’ Role
There are various recommendations for resolving moral dilemmas in the workplace. For instance, Santosuosso (2016) suggests a ten-step model to help decision-makers. If I were Olive, I would follow the steps to evaluate each action’s effect and make a satisfactory solution. According to the model by Santosuosso (2016), the option that involves the falsification of report findings has effects that definitely should be avoided, such as endangering the company’s financial health with a risky decision. Hence, as an assistant finance manager, I would be interested in making the right choice for Cyberchamp more than endangering the company’s and my own future. At the same time, if I knew that Mrs. Kowkabany had recently sold her Cyberchamp shares, it would not change my answer, and I would still make a thorough and unbiased analysis of the proposal. In my opinion, rumors and innuendos should not be the crucial factors in decisions regarding capital budgeting analysis. However, they should be considered among other data since human factors can play a significant role in human behavior and the company CEO is not an exception to the rule.
When a Budgeting Decision Puts One’s Job in Jeopardy
Another aspect that complicates the decision-making process for Olive is the fact that she received an indirect threat to lose her pay or job unless she produces the results desired for the CEO. However, I believe that even if the employee were sure that her ethical decision would cost her the job, she should make a fair evaluation. According to Santosuosso’s (2016) step eight, fake report findings would impose a financial risk on Cyberchamp and all its employees, including Olive. Hence, it is in the company’s best interest to ensure the data is accurate.
Product Failures Due to Ethical Dilemmas
There is a number of real-world situations that involve ethical dilemmas affecting the company’s products and reputation. For instance, Choshen-Hillel et al. (2020) report a case of Hallmark Channel and its advertisement presenting two brides at the altar. Public pressure resulted in the cancellation of this particular commercial to save the firm’s reputation. An opposite example includes the approach of the company Second Life that developed an anonymous bonus allocation without any intervention of the management Choshen-Hillel et al. (2020). In doing so, the company eliminates the pressure of ethical issues and cares for its employees’ job satisfaction.
To summarize, the scenario from the Cyberchamp case study should be addressed with the consideration of multiple factors, such as the factors creating the ethical dilemma and the effects on the company’s future. In this regard, producing inaccurate report results could impair the organization’s financial health. Therefore, the assistant finance manager should insist on obtaining correct data to protect the employees from the wrong strategic decision and its consequences.
References
Choshen-Hillel, S., Caruso, E. M., & Shaw, A. (2020). Research: The downsides of trying to appear ethical. Harvard Business Review.
Hunjra, A. I., Bakari, H., & Batool, I. (2018). Application of financial decisions, their determinants, and financial performance: A tabular summary of systematic literature review. Empirical Economic Review, 1(2), 91-142.
Santosuosso, P. (2016). A ten-step model for solving ethical dilemmas. International Journal of Business and Management, 11(12), 30-39.