15 May 2022

368

Debating the Ethics in Kickbacks

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Academic level: College

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Pages: 7

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The scenario which has been presented for analysis concerns ethical issues at Alcon Company. The company is known for good reputations, good standards, quality service delivery, and has an excellent leadership with moral reproach and quality. The administration of Kathryn, the vice president, and the outstanding personality of Joseph are some of the critical pillars of Alcon. However, Carl, sales personnel, who are working under the directives of Joseph, has been found guilty of giving kickbacks to his clients to raise the sales. More remorseful is the fact that Carl is defensive of his behavior, and does not show any resentful effort at the mistake. He seems to be comfortable and has attained a hard ground upon which he can argue his case. Carl supports his argument by quoting the vague conditions existing within the runs of the company, arguing that the habit of giving kickbacks is a standard norm. By such, he does not see any reason behind stopping the vice. Furthermore, he states that the money which he gives to his clients as incentives are from his commissions and that he has more problems to solve. 

Other issues which surround the question of how Joseph should handle the problem include the fact that there exists a blood relation between Carl and the vice president Kathryn. In this regard, family ties may lead to favoritism or criticism between the two relatives. More so, Kathryn has a known character of laying off no profiting employees in a way which Joseph does not seem to be comfortable with. Therefore, the ethical questions in this intertwined condition are whether Joseph should report the case of Carl to the vice president, or handle it at his level. Finally, the last paragraph of this except brings a more interesting conflict. The very vice president, Kathryn, has had a keen interest on Joseph’s wife, Ellen, owing to her good works as a broker. Therefore, the questions which come to mind is whether Joseph should approach Kathryn as the leader of his company, or as a friend to his wife. Thus, the complex scenario will be discussed in-depth in this paper, borrowing from the professional ethical solutions to such kind of problems. 

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Possible Outcomes

Aristotle was very concerned with the questions of ethics in the society, in his discussion about whether an action should fulfill one’s ego, or should be for the benefit of all, the Aristotle concludes that the operation of an individual in a society should be in such a dimension that it is as considerate about the wellbeing of the others above the ego of a single individual (Solopova, 2016). More so, an individual should adopt utilitarianism rather than egoism when it comes to decision making and the actions taken afterword. In this regard, it is clear that the question of kickbacks in a business setup is unethical. By all standards, kickbacks only help an individual in a society, and brakes all other cords and relationships with the rest of the community. In the long run, both the initiator and the receiver of the kickback will be out of tune with the conventional norms of the society. There is need for Joseph to take action if he decided that giving kickbacks by his salespeople in an unethical act. There is a possibility that Joseph would do nothing. Joseph would pretend that he is less informed about the situation and avoid giving further attention to it. Joseph could also go to the company’s Vice-President for advice. The fact that Joseph has already discussed the issue with Carl, the leading salesman, he would issue him a warning demanding the end of practicing kickbacks and give consequential disciplinary measures that could be implemented if more cases of kickbacks get reported. Joseph could also base on a statement from the company’s policy book about kickbacks and decide the relevant disciplinary measures to be taken against the three salesmen so as to correct the kickback adversary. Joseph could also issue an immediate termination of the salesmen to set a learning example for the rest of the team to understand the distinct stand of zero tolerance in the kickback issue. Joseph could also make a step to evaluate the company’s policies by scheduling a meeting or training for the sales people to elaborate his opinion.

In the narration given, which encompasses the ethical dimensions of Alcon Company, and Joseph, the sales manager, it is visible that Carl has put Joseph in a dilemma. However, as a leader, it is expected that one should be able to navigate through difficulty professionally by making informed decisions and yet achieve the goals of the company. Apart from meeting the purposes of the company, the leader should have a clear intention to build his subjects, rather than to kill their ego and personality. Therefore, the following are the suggested ways through which Joseph could approach the issue at hand without causing any unnecessary conflicts among the members and various departments of the organization. 

Joseph should consider handling Carl as a person and an employee of the organization. In this regard, he should organize an out of session sitting, however informal it may be, and discuss the demerits of the vice into which Carl had been found. During this sitting, it is prudent for Joseph to create a good rapport with his client Carl, and be as friendly as possible. Courage, as discussed by Zavaliy and Aristidou, is a component of a successful leader (2014). Joseph should embrace all an all rounded approach to face to Carl, take him through the ethical issues as adopted by the company, and make him understand the consequences of the actions he has been receiving. 

This approach is long lasting. It also creates a more peaceful environment in which respect and love are the fundamental virtues. Once the employee has been taken through this peaceful process, he will change permanently. However, the process may turn out to be wild in case a proper approach is not given. More so, Carl may perceive Joseph as a witch hunter and a lousy leader who pokes his nose into other people’s affairs. 

The second option is to report the case of Carl directly to the deputy president of the organization. In this case, the way forward in handling Carl would be made by Kathryn. However, due to the family link between Carl and Kathryn, and the personal character of Kathryn, one may argue that the case should not be directed to Kathryn. Although Kathryn and Carl are related, and that Kathryn has a unique character, it should be understood that the action which the vice president should take concerning a vile employee should not be pegged on whether they are related or not. Blood relations and friendships should be differentiated from business management. In a more efficient way, the vice president stands at a better position to offer discipline to a defective employee than the sales director. Therefore, Joseph should forward the case without considering the family ties between the two factions. 

There should be a joint seminar session organized by the company to handle the issues of kickbacks among the salespeople. This level of reasoning opens an opportunity to elaborate as to whether Alcon Company accepts briberies such as kickbacks and tips as suggested by Carl, or whether the company rejects such vices among her members. The advantage of this approach is that every employee will get an opportunity to learn the right directives of the company as opposed to disseminating information to one person at a time. Furthermore, the company will get an opportunity during which the leaders will spell out the norms and virtues embraced by Alcon among other essential pieces of information. Finally, this session will act as a bonding session for the employees and the company leadership in that the two parties will interact freely while sharing their personal experiences. 

My Decision 

Having underlined the possible measures and steps that can be taken to cub the vice in the company, I would prefer to use the third option. Considering all the ethical steps in decision making, I would decide to go for the joint session in sending information to the employee. In this regard, I have considered the harm test, the professional examination, the reversibility test, the publicity test, and the virtue test as outlined in the works of Michael (2008). Ethical issues are closely connected to management and the success of the company. While Joseph maintains that Alcon delights in everything in the right way, it should be the plight of the employees to support the brand of the company in matters which concern ethics. 

The joint session process should be inclusive of the top management of the company. Under these circumstances, Kathryn will find ease in deciding Carl. The seminar should be organized uniquely so that the main speakers do not come from within the company; instead, they should be outsourced and briefed on the impending issues. 

Application of Ethical Perspective(s)

The early writers in the field of ethics such as Hjern and Porter agree that decision making requires an organizational level involvement (1981). In this regard, the best theory which should guide the decision on how to deal with the case of kickbacks in a company is the organizational decision-making strategy. In this way, the employee in question will not feel offended at the personal level; instead, he will feel accepted and well treated among the other employees. Such lessons do sink deeper into an individual’s character and lifestyle. 

As opposed to the one on one option of handling employees, it is ethical to manage the entire group, and send the information to a more extensive system at the same time. In this way, the interpersonal development among the employees will be enhanced, and the entire company will enjoy a smooth transition into a friendly working environment. 

This decision has been arrived at because of my virtues. I subscribe to the utilitarianism school of thought, which dictates that action should influence the entire community and that an act should not be targeted at an individual. Finally, the decision taken supports the deontological theory which requires that individuals should not be used as a means to the end. Macclellan suggests that action should not be reactive but somewhat proactive (2013). I believe that each employee should be developed into a fully functional and autonomous being, who does not require supervision and follow-ups. For this reason, I prefer to take up an approach which builds individuals rather than killing their ego by laying them off, or by causing unnecessary embarrassments. 

My Assumptions

I have assumed that the relationship between Ellen and Kathryn is not connected to any biasness and that the steps which will be taken against Carl will not affect Joseph’s personal life and family ties. I have also assumed that Kathryn will consider hiring Ellen irrespective of whether Joseph will open up to discuss the issues concerning Carl or not. In making these assumptions, I have assumed that the primary objective of the paper is to give the best direction concerning the problems of kickbacks and the general running of the company. However, such matters may still affect the family connections if they are not concluded in good spirit. 

Consequences

If my suggestion is considered by Joseph, I foresee a situation in which the sales may drop for some time after which the company will pick up its sales more systematically. The drop will be occasioned by the fact that those clients who depended so much on kickbacks will no longer have the urge to purchase from Alcon. In addition to that, most clients will become skeptical about the Alcon Company products. However, in the long run, the company will have its sales running continuously since there will be a good environment for transactions. The salespersons will face the same market with equal opportunities without giving the buyers incentives. It is plausible that the decision would lead to a decrease in the company’s sales which would frustrate the sales personnel. Employing tactful and evident reasons to elaborate the unethicalness and unfairness of kickbacks and purge it while replacing it with strategic sales approaches would balance and back up the company’s overall sales. There would be strong development of the team with more pride and confidence in their abilities knowing they have no one to accuse them of unethical behavior.

References

Hjern, B. & Porter, D. O. (1981). Implementation structures: a new unit of administrative analysis. Organization Studies, 2 (3): pp. 211-227.

Macclellan, J. (2013). How (Not) to Defend a Rawlsian Approach to Intergenerational Ethics.  Ethics & the Environment,  18(1), 67–85

Michael D. (2008) Center for Study of Ethics in the Professions , Illinois Institute of Technology, Chicago 

Solopova, M. A. (2016). Aristotle on the Intellectual Virtues: On the Meaning of the Notions of Consideration (γνώμη) and Consideration for Others (συγγνώμη) in Nicomachean Ethics.  Russian Studies in Philosophy , 54(6), 519–534

Zavaliy, A. G., & Aristidou, M. (2014). Courage: A Modern Look at an Ancient Virtue.  Journal of Military Ethics,  13(2), 174–189

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