Business organizations in the globe are guided and follow particular behavioral patterns as stipulated by policies formulated control their operations. The legal authorities greatly influences activities conducted by corporate. However, certain social-economical operations are nit accommodated in the legal provisions but established business ethics plays a pivotal role in promoting moral operations and behaviors by corporations (n.a."What is Business Ethics?" 2011). Business ethics gives acceptable behaviors that should be exhibited by corporate as they interact with customers and environment. Business ethics structure the scope of interaction between a company and its environment as well as extent of corporate to safeguard the welfare of its employees.
Therefore, business ethics plays a fundamental role in building a company's reputation in the society and enhancing morale of its employees. Organizational ethical issues not shows level of sensitivity of a company to welfare of its employees but also to contributes to a large part enabling a firm to compete favorable in particular industry. This paper research paper wishes comprehensively evaluate an organizational issue on the basis of business ethics, recommend an apt plan of action, identify demerits of the recommendation and inadequacies if the was not involved with the company.
East-coast insurance company has been privileged to process claims regarding health care for a Government Agency. Due to the magnitude of the task coupled with current workforce the company outsourced a commission to facilitate excision of the involved tasks through an appropriate strategic plan. The commission was geared towards identifying the root causes the company that had been increasing that threatened the company via reducing its profit margins. Also, the commission was to give possible solutions to the identified problem that compromised with the productivity of the company. After the commission comprehensively evaluated the situation variety of findings were presented which would act as a basis towards resolving the organizational inadequacies. The CEO of the company should identify the most suitable solution from the findings and present it before the Broad of Directors of the company.
According to findings presented by the commission the problem the company is facing are board and touches various section of the firm therefore should be reflected in the mitigating policy. The problems range from inadequate infrastructure to unskilled worker. This greatly hampers efficiency of the company and subjects it to gradual decrease in market share. Notably, it is apparent that moving with the project without making changes in the organizational infrastructure like space and welfare of the employees would greatly compromise with the business ethics (Jones, Parker, & Bos, 2005). From this perspective in order to register high gains and build on both morale and reputation of the company in the society a mitigating policy from those recommended by the commission is urgently required. Notably, scope of competence as well as qualification of employees plays a significant in fostering development of an institution. Therefore, advocating for recommendation that would prioritize on competence and skills to boost operations as well as efficiency of the company.
As the CEO of the company and having evaluated its position in the industry especially on the entire contract with the government I would recommend for basing Claims Processing Department to an area approximately forty miles from the city that is not accessible by public transport system relocation of the department would resolve infrastructure inadequacies and eliminate possibility of similar problems in the future. Also, the fact that the issue of unskilled personnel would be tacked appropriately and competence be evident among the company workforce. The fact the location of the department would be away from the city, external disturbance to the system would be reduced greatly hence the number of errors that can emerge from the system will be remarkably minimized. Problematic issues emerging from within the company tend to subject an organization to risky situation that cannot slow bring a company to its heels. Therefore, resolving the workforce problems from this context would manage the risks within the organization and promote optimal operations of the company.
Also, it is clear that the company lacks adequate spaces at its current working place. In addition the contract entered between the company and the government would demand not only extra space but also more personnel to perform various tasks associated with the contract. The ethical issues that guide operations of organizations prohibit companies from establishing working conditions with limited working space. Under this context relocating the Claim Process Department would allow the company to adopt working conditions and environment that reflect business ethics. Moreover shifting the location of department would facilitate sharing of the risks in case an accident or resources of the company occurred. In insurance industry records are significant therefore establishing a data based department independent from other operations of the company would safeguard core values of the company is crucial in meeting various demands of the company (Ferrell, Fraedrich, & Ferrell, 2009). This preserves reputation of a company and portrays corporate sensitivity to ethical issues that calls for honesty and accountability in task performance.
Though locating Claim Processing Department posed to be the most appropriate recommendation to resolve the problems facing the company a number of challenges were associated it. In order to maximize beneficial aspect of the recommendation its evaluation is crucial in anticipating problems. This would promote consistency in implementation process and establishment of mitigating policies to problems that might emerge. Locating the department in different area would cause interruptions to the daily activities of the company. On the grounds that the company is service oriented organization interfering with its claims would cause inconveniences to its customers. If appropriate measures are not established during the entire period the company can loss a considerable number of its customers as well as damage its reputation in the society. Also, the entire process is resource consuming activity that requires a huge funding from the company.
This can result to financial constrain to the company that can hamper development through exploring untapped market in different areas. Also, moving the Claim Process Department to a different area requires skills to facilitate installation of the premises. This indicates a further financial requirement of the company that might compromise with its capacity to explore opportunities. Relocation of the department would require special arrangement in order to facilitate accommodating employees in the new system. From this perspective inclusive adaption of employees is challenge to implementation process. In case the process involved other institutions rather than the government different problem would arise. For instance the lack of diversification in the workforce would be identified as a core problem to the company. Also, the fact that the current business ethics call for gender balance in the workforce and corporate are associating with companies that reflect the equal representation on both genders. Therefore, gender inequality in the workforce as well as in top posts of would pose to be a problem to the company.
Business ethics plays central role in establishing appropriate organizational environment to foster suitable working conditions. This boosts morale of employees in an organization as well as promotes unity of direction towards a common goal. Reputation of a company in the society influences relationship between its customers, potential customers and the firm. East coast insurance company having entered into contract with the government commissioned a planning committee to evaluate the position of the company on handling the project especially at its declining productivity. The committee gave findings of the issue and an appropriate mitigating action is recommended in order to resolve the situation. The recommendation is established in line with ethical issues in order to safeguard the reputation of the company and promote apt working conditions.