case Analysis n the Implication of Philosophical Ethics Theories in mAking Ethical Business Decisions.

1. Running Head: ETHICAL DECISION MAKING 1
A Case Analysis on the Implication of Philosophical Ethics Theories in Making Ethical Business
Decisions
Rajesh Paneru
Kathmandu University School of Management
(KUSOM)

2. ETHICAL DECISION MAKING 2
A Case Analysis on the Implication of Philosophical Ethics Theories in Making
Ethical Business Decisions
Submitted By:
Rajesh Paneru
Roll No: 17322
Email: 17322_rajesh@kusom.edu.np
Submitted To:
Mr. Krishna Khanal
Faculty of Managerial Ethics and Corporate Citizenship
Kathmandu University School of Management
(KUSOM)
Balkumari, Lalitpur
Date of Submission:
23rd
November, 2017

3. ETHICAL DECISION MAKING 3
1. Identification of Facts
The secretary involuntarily lost her right hand in an accident; as a result of which, she is unable to fulfill
her job responsibilities as specified in her job description. She has worked for the company for 15 years
and the manager is really satisfied with her hard work and dedication. However, due to tight budgetary
constraints, the company cannot afford retaining her and hiring another secretary who can perform her
part of responsibilities at the same time. Hence, the company is under moral dilemma in making decision
to fire her, retain her or lay her off with some compensation.
2. Identification of the Ethical Issues
For fifteen years, the secretary has devoted herself to the organization. The company has been highly
satisfied with her work and dedication and there is no denying the fact that she has contributed to the
progress of the organization. However, her recent disability has raised moral dilemma for the company. If
the company decides to retain her in her job, it has to reallocate and compromise its budget. The
compromise can be costly as it can reduce the quality of service that the company has been offering to its
customers. Thus, retaining her and maximizing her happiness can cost the company happiness of its
thousand customers.
At the same time, if the company fires her because of her disability, the moral virtues of the company can
be at stake. How ethical is it to treat someone with all respect until the company gets something in return
and fire when she is incapable physically?
Similarly, if the company lays her off by providing some benefits, the decision may seem plausible for
the time being but the company well knows that she wants to stay in the job and that she will not get any
other job anytime sooner. In this case, would giving some compensation ensure a lifetime security to that
one employee who has given her blood and sweat to the company?

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3. Identification and Evaluation of Alternative Course of Action
Considering the facts and moral issues that the company is facing at the moment, the following
alternatives have been specified to the company:
a) Lay her off with some compensation
Since her accident was involuntary and that nobody, except her, understands the pain of losing her right
hand, a decision to fire her directly would only break her emotionally. Firing her could break her
confidence that she has built in the last 15 years. Instead, if the company can honor her contribution for
the last 15 years and offer her a reasonable “separation pay” before laying her off, the impact of
management’s decision to lay her off could somewhat be managed. However, such compensation can
help her last for few months. Afterwards, she still needs to earn her livelihood. Because it is well known
that she will not find any other job any time soon, firing her would jeopardize her future.
b) Find ways to retain her
Rather than firing an employee who has been very efficient and productive in the last 15 years, the
company can look out for ways to retain her. She lost her hand, not her mental ability. Her aptitude is still
intact. Her aptitude and a 15-year long experience can still do wonders for the company. Thus, the
company can look out for solutions like Speech Recognition Software (Google Speech) that
automatically types what she wants to keep records of. Such software is very cheaply available in App
Stores these days. Hence, this alternative could well suit the present scenario as the company has
budgetary problem and using cheap software would not pose much pressure on the budget reallocation.
c) Employee Exchange Program
The company can look out for organizations that hire physically challenged people. The company can
negotiate from organizational level with the Human Resource Department of such organizations to
engage in Employee exchange program. Such organizations can supply physically fit employee to the

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company and in return, the company will supply a highly experienced supervisor matching their
organizational requirements.
4. Impact on the Stakeholders
Alternatives Major Stakeholders Impact
Lay her off with
compensation
 Secretary
 Company
 Highly negative impact.
 Moderate as compensation may put pressure on
budget controls.
Find ways to retain her
 Secretary
 Company
 Customers
 Highly positive impact
 Positive Impact
 Positive Impact as her cognitive expertise stays in
the company.
Employee Exchange
Program
 Secretary
 Company
 Another Company
 Moderate as she may need time to accommodate
in new company.
 Moderate as exchanged employee may demand
higher salary.
 Moderate as it may have to invest resource in
socializing the new employee.
From the above analysis, we find that finding ways to retain her is the best alternative that the company
can opt for from business point of view. This alternative can be cheaply implemented without many
changes in the organizational experiences. Besides, retaining well-performing employee by
accommodating situation as per her convenience also builds better impression of the company
management among other employees. As a result, other employees also develop good perception about
the company. Their motivation level is high, work involvement increases and productivity rises. Thus, it

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is suggested that the company retained her by introducing new Google Speech Software to allow her
fulfill her usual job responsibilities.
Philosophical ethics accounts for the differences in judgment that people make in similar scenarios.
Philosophically, there is nothing as the ultimate right or ultimate wrong because it is the context that
determines the accuracy of any decision. In previous section, while analyzing the alternatives, we used a
business perspective which was more focused on the self-interest (business interest). However, ethics
points out that decisions based on self-interest may be appropriate from business view point but not
ethical view point. Thus, let us again analyze the given case using ethical theories.
1. Utilitarianism Perspective
From utilitarianism perspective, the company would be better-off firing the secretary because if the
company decides to retain her despite her permanent physical inability, the company will risk the
happiness of many stakeholders. Suppose due to her physical inability, her work and time efficiency
reduces. She starts to take more leaves and starts asking for additional care at the work place. All these
issues will add cost to the organization. The company may have to reallocate its limited budget because it
decided to retain her. As a result, all the other employees may also have to compromise at the work place
due to reallocation. Much impact of the decision could be upon the company’s customers. Due to
decrease in her efficiency, customers may not get the same level of service that they used to get.
Consequently, large group of stakeholders- fellow employees, shareholders, and customers- may end up
unhappy. Utilitarian perspective says that ethical decisions are those that maximize pleasure for most of
the people associated with the decision. Since, retaining her restrains utility of many stakeholders at the
cost of her only happiness, Utilitarianism says she should be fired.
2. The Principle of Deontology
Deontology Principle advocates for truth. Irrespective of consequence, what is right is always right and
what is wrong is always wrong. In the given case, from surficial level, it may seem plausible from

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deontological perspective to fire the secretary because the truth is she is incapable of fulfilling her
responsibilities post the accident. In a way, she is unable to fulfill her morality- her duty. But from a
deeper perspective, firing her would mean that organization only sees her as a means to achieving
organizational goals, which- according to principle of deontology- is wrong. Firing her means she is not
capable of achieving the organizational set goals. By firing her and treating her as only a means to goal
attainment, the company is compromising human dignity. This is not ethically acceptable. So, she
should not be fired. Rather the company should look for ways to retain her.
3. Virtue Theory (The Aristolian Theory)
Since the secretary has already proved her virtue as a passionate, hardworking, dedicated and loyal
employee of the company, the company should respect the inputs that she has given in the last 15 years.
Despite the devastating accident, she still has the courage to stay in the job and do equally good. Thus,
being the virtuous person that she is, she should not be fired from the organization. The organization
should instead redesign her job whereby she can work as a counselor as well. Her counseling can help
other employees in cultivating virtue among them through constant practice. She can be a source of
inspiration to many other employees. Employees can look up to her and improve their work accordingly.
4. My Personal Opinion
As a concluding remark, what I think is while Utilitarian may seem right from consumerism perspective,
firing an efficient, dedicated, and hardworking employee is never an ethical decision. If I were her fellow
colleague, I would always feel inspired by her when working with her. Despite devastating accident, she
still has the courage to stay in the job. She wants her independency. She does not want to be a burden
upon anyone else following his physical disability. My respect for such employee will always be higher
and I will always feel inspired by her. Besides, firing her would only mean that the company never treated
her as a family. She was mere means to achieving its stated goals and now that she is incapable of doing
what she is good at, the company wants to let her go. In this regard, my views converge with the

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proponents of Deontology Principle and Virtue Theory. I also believe that the company should retain her
by finding inexpensive ways like Speech Recognition software. She might have lost her right hand, but
her courage, cognitive abilities, and experiential expertise is still right and intact. It is not just her who
will be benefitted from this retention decision. The company will also get equal opportunities to reap
benefits of her caliber.