Running Head: ETHICAL DECISION MAKING AND BUSINESS CULTURE : STANDALONE PROJECT 1 Ethical Decision making and Business Culture : Stand-Alone Project Anthony Cornibert Ashworth College Author Note Student Number: GA1900011 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT Abstract This is Stand-Alone project and final paper. This project places me in the scenario where I have been working for Advanced Data Transmission, Inc., for several years as the chief human resources officer. As such, I have given direction for the company in terms of its treatment of workers, diversity issues, and risk issues, and have provided consultation to other senior-level managers in dealing with ethical and moral issues within the company. Advanced Data Transmission, Inc. has just announced that it has been granted the contract to open and operate the first outer-space corporation that will include a small village atmosphere. Due to this, I will develop a “Global Business Ethics Manual” that addresses the following: 1. a basic normative ethical foundation theory and reasons for choosing it, 2. my design for the corporation, 3. the safety and liability risks for all participants, 4. my human resource guidelines for the ethical treatment of workers, 5. Marketing guidelines for ethical advertising and sale, 6. technology ethics in monitoring data transmission and 7. current environmental concerns and ethical issues that will set the stage for a transition to an environmentally sustainable future. 2 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT Ethical Decision Making and Business Culture - Stand-Alone Project This global business ethics manual of Advanced Data Transmission, Inc. details the ethical guidelines for all employees who will reside in the space village for the more than six months before returning to earth. All employees, managers or workers, will be guided by this global business ethics manual as its goal is acknowledge ethical factors as it relates to all stakeholders. 1. Basic Normative Ethical Foundation Theory: I have chosen the deontological ethical theory is the most appropriate normative ethical foundation theory for the organization. Deontological ethics an action is considered morally good because of some characteristic of the action itself, not because the product of the action is good. Deontological ethics holds that at least some acts are morally obligatory regardless of their consequences for human welfare. Descriptive of such ethics are such expressions as “Duty for duty’s sake,” “Virtue is its own reward,” and “Let justice be done though the heavens fall” (Deontological ethics, n.d.). The reason lies I in the fact that this theory places emphasis on moral and ethical duties and obligations of the people. This theory is not concerned about the consequences of the actions.(Floyd et. al., 2013). The deontological ethical theory will specify duties and obligations for the managers and workers residing in space village, and encourage them to do what is morally and ethically right. According to this theory, people should take responsibilities and perform activities with right intention. “Right intention” is the foundation of deontological ethical theory. Right intention refers to correct and appropriate intentions. Application of the deontological ethical theory will encourage the managers and workers of space village to work with appropriate intention. 3 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT The deontological ethical theory also considers elements of moral value. Some deontological theorists believe that there is no clear relationship between “right action” and elements of moral value. However, the deontological theory relates to moral obligations which is very important in setting high ethical standards and improving ethical compliance. Choosing deontological ethical theory will give the managers and workers of the space village freedom to act in moral way which will be tied in with the organization’s operations. This theory does not insist on final consequences but provides clear guidelines on how to take right actions and improve moral actions of employees. This theory also helps in improving individual’s efforts to carry out moral obligations and adopt ethical codes. (Ferrell & Fraedrich, 2016). The moral rules represent the moral constraints that relate to human behavior. The deontological ethical theory has a narrow scope that prohibits it from defining what actions are prohibited. This theory can be used to define what actions are right, and presents various rules that help in understanding the nature and implications of moral obligations. In a space village, the employees have to take responsibilities of their own actions. They are isolated from the world they have been a part of. The space village is like a new world for them. They must set high moral and ethical standards, and their actions must be motivated by right intentions. Thus, selection of deontological ethical theory will be more effective in this situation. Application of this theory as it relates to the operations of the organization voids or minimizes the use of legal and disciplinary courses of action in the absence of what exists on earth, if indoctrinated. 2. Design for the Corporation: 4 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT The application of a design that I will choose for the corporation will encompass a focus on the stakeholder as compared to another approach. Despite the major objective of Advanced Data Transmission as being that of profit generation, this may go against fundamentals as it relates to ethics encouraging the use of entities as a means to an end. Implementation of the stockholder design and by extension theory suggests and it states that the sole responsibility of business is to increase profits. It is based on the premise that management are hired as the agent of the shareholders to run the company for their benefit, and therefore they are legally and morally obligated to serve their interests. The only qualification on the rule to make as much money as possible is “conformity to the basic rules of the society, both those embodied in law and those embodied in ethical custom.” (Admin, n.d.). It focuses on short term strategy and greater risk taking which are just two of the inherent dangers involved On the other hand, a stake holder design takes would take into who affects or is affected by decisions made within the Advanced Data Transmission. It states that a company owes a responsibility to a wider group of stakeholders, other than just shareholders. A stakeholder is defined as any person/group which can affect/be affected by the actions of a business. It includes employees, customers, suppliers, creditors and even the wider community and competitors (Admin, n.d.). Our implementation of the stakeholder theory as design of our corporation can be recognized as an important element of Corporate Social Responsibility (CSR), a concept which recognize the responsibilities of corporations in the world today and by extension that of outerspace both in the short and long-term. For better or for worse, the decisions that our corporation makes will affect many more people than just the us. In order to sustain the firm, our ethically responsible business decision 5 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT making goes beyond a narrow concern with our stockholders and considers the impact that our decisions will have on a wide range of stakeholders. Our failure to consider these additional stakeholders will have a detrimental impact on those stakeholders, and by extension on stockholders, specifically, and on the firm’s long-term sustainability as a whole and its ability to maintain profitability. 3. The safety and liability risks for all participants: workers, investors, customers, etc: As Chief Human Resource Officer, I am expected to exemplify the highest standards of ethical business conduct and encourage discussion of the ethical and legal implications of business decisions. This by extension implies that Advanced Data Transmission, has the responsibility to create and sustain a work environment in which employees, consultants and contract workers not only know the ethical and legal behavior that are expected of them, but also familiarize themselves with safety and liability risks of all associated stakeholders. When we protect the health and safety of our coworkers, our community, and the environment, we demonstrate respect and contribute to a positive work environment. Without respect for health, safety, and the environment, we put our coworkers, our employees, our clients, our customers and the public at risk. Advanced Data Transmission, Inc.is committed to protecting the health and safety of our employees, the public, our customers, suppliers, and visitors. Advanced Data Transmission, Inc. will be the first corporation in the world to open to operate an outer-space corporation. Despite this great achievement, we will inevitably be faced with unforeseen circumstances as it relates to all aspects of this objective. We as a corporation have both a moral and ethical responsibility to acknowledge all risks and their possible 6 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT implications as it relates to Advanced Data Transmission, Inc. and all its stakeholders. The following are probable risks as it relates to our stakeholders. Employees: Advanced Data Transmission, Inc. is the first outer-space in the world. We are fully aware that human being are incapable of surviving in the atmospheric conditions which prevail on the moon. The construction of the compound if not done correctly would prove detrimental to the very survival of each and everyone on the compound. We must place ethical view to the forefront and ensure that the no shortcuts or cost saving measures exist as it relates to the construction. we intend to ensure that our employees safety is kept as our number one priority. To enforce this, the construction of the outer-space corporation will be made with the highest quality and standards globally available. Workers and managers will reside in the space village for a minimum of six months before returning to Earth. This carries potential risks, as not employees for various reasons may necessarily be able to co-exist in such an environment, weather for emotional, health reasons emergency or the like. Employees based on an ethical stand point cannot be forced stay against their will. We should ensure that we perform various tests prior on employees to ensure their capability. Despite the location of the new corporation, all laws applicable to employees redress still applies. Failure to acknowledge these risks can lead to first class law suites and the imposition of legal proceedings on behalf of employees. Customer: Customers have become smarter, more well-informed and are quick to perceive if they are being cheated. The company’s success therefore rides on building trust and confidence with 7 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT the customer which can only happen when they practice ethics in customer dealings. Integrity in every dealing must come naturally and not because there would be legal repercussions. Ethics in customer dealings is doing the right thing every time and in everything. So how can companies display that they follow strict guidelines of ethics in customer dealings? These characteristics must be clearly demonstrated for customers to believe them long term (Newman, 2017). False advertising and developing products that of an inferior quality can have sever ramifications and adverse risks for Advanced Data Transmission, Inc. Such practices generally manufactures a high level of mistrust and negative consumer perception in both the short and long-term, which in the end, could reduced sales, profits and negative implications on other stake holders associated with Advanced Data Transmission, Inc. Advanced Data Transmission, Inc. Will manage all satellite data transmissions to all countries. In so doing risks may lie in our inability to provide to every single customer due to this new venture. We risk ensuring that we maintain quality standards and manage all possible issues relating to our product. We also risk the lives and health of our customers who use our shuttle service between the earth and moon, both related to the functionality of the shuttle as well as environmental conditions on moon. This can lead to prospective civil, and Federal lawsuits. Environmentalist: Just as matters pertaining to climate warming and the like on earth, we risk contention from environmental pressure groups and global pressures from other countries who all may deem their claim on the moon. This could lead to postponement or even cancellation if the matter receives enough publicity, triggering governmental involvement. 8 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT Investors: As mentioned before, this is a new venture, which will call for a huge financial investment. We face the reluctant investors who may hesitate or even pull away due to the uncertainties in its financial feasibility and financial returns. This may prove a major problem, rendering the construction of the corporation on the moon delayed or even stopped. Our corporation may also be faced with legal ramifications in the customer’s pursuit towards that of compensation; In the United States a variety of laws at both the federal and state levels regulate consumer affairs. Among them are the Federal Food, Drug, and Cosmetic Act, Fair Debt Collection Practices Act, the Fair Credit Reporting Act, Truth in Lending Act, Fair Credit Billing Act, and the Gramm–Leach–Bliley Act. Federal consumer protection laws are mainly enforced by the Federal Trade Commission, the Consumer Financial Protection Bureau, the Food and Drug Administration, and the U.S. Department of Justice (Consumer protection, 2020). In so doing we must ensure that To maintain trust in our business relationships, we must always act with integrity. We must steer clear of giving or receiving gifts that are intended to influence, or appear to influence, business decisions. When we accept or give such gifts, it can undermine customer relationships, hurt our reputation, and put the Company in legal jeopardy. Absolutely no staff member is to receive, receive no gift or item which suggests such. 9 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT False or misleading communication can is strongly prohibited as it has the propensity to degrade trust in an organization and may be considered fraudulent. We intend to provide our customers with the 4 human resource guidelines Our policy is to maintain a drug-free, secure workplace where all employees are attentive to hazard prevention and the avoidance of accidents and injuries. Posted safety regulations, statistics, and warnings are guides to help us stay out of harm’s way—observed accidents, injuries, or hazards should be immediately reported to Company management. To support this commitment, each employee is responsible for observing the safety and health rules and practices that apply to his or her job. Employees are also responsible for taking precautions necessary to protect themselves and their co-workers, including immediately reporting accidents, injuries, and unsafe practices or conditions. Appropriate and timely action will be taken to correct known unsafe conditions. - Every employee deserves the opportunity to work and grow in an environment that is free of discrimination and harassment, and that supports work/life flexibility. Advanced Data Transmission, Inc. employees have the right to work in an environment that is free from intimidation, harassment and abuse. At Advanced Data Transmission, Inc., we are committed to providing a work environment free of unlawful harassment of any kind. Verbal or physical conduct by any employee that harasses another or disrupts another’s work performance or creates an intimidating, offensive, abusive, or hostile work environment will not be tolerated. Our anti-harassment policy applies to all persons involved in the operation of the Company and prohibits unlawful harassment by any employee. In addition, unwelcome sexual 10 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT advances, requests for sexual favors, and other unwelcome verbal or physical conduct of a sexual nature are specifically prohibited. Employees are encouraged to help each other by speaking out when a co-worker’s conduct makes them or others uncomfortable, and are responsible for promptly reporting harassment when it occurs. Advanced Data Transmission, Inc.has internal complaint procedures to immediately address and undertake an effective, thorough, and objective investigation. If an employee believes that he/she has been unlawfully harassed, they should submit a written complaint to their manager, the CEO, COO, or Chief Human Resource officer as soon as possible after the incident. If it is determined that unlawful harassment has occurred, effective remedial action will be taken. Any employee determined by Rainmaker Systems to be responsible for unlawful harassment will be subject to appropriate disciplinary action, up to and including termination. Due to our high level of ethical standards, Advanced Data Transmission, Inc. maintains a level of non-discriminatory practices as it relates to our screening process. Applicants will not be discriminated on the grounds of cultural, racial, religious, marital, sexual or physical disposition until we deem it absolutely necessary that in so doing would compromise the execution of the proposed post. Due to the high level of confidential data as well as the very nature of Advanced Data Transmission, Inc. all employees are required to take a bi-monthly drug test. 5 The marketing guidelines Our ethical marketing practices is an approach that guides the marketing efforts of Advanced Data Transmission, Inc. Through our sales ethics and ethical marketing, responsibility, fairness, and honesty are promoted. 11 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT 1 Our advertising, public relations, and all marketing communications professionals have an obligation to exercise the highest personal ethics in the creation and dissemination of commercial information to consumers. 2 Our advertisers should clearly distinguish advertising, public relations and corporate communications from news and editorial content and entertainment, both online and offline, hence avoiding consumer confusion and mistrust, striving to clearly separate paid advertising from actual news. 3 We will clearly disclose all material conditions, such as payment or receipt of a free product, affecting endorsements in social and traditional channels, as well as the identity of endorsers, all in the interest of full disclosure and transparency. 4 We will treat our consumers fairly based on the nature of the audience to whom the ads are directed and the nature of the product or service advertised. 5 We will never compromise consumers’ personal privacy in marketing communications, and their choices as to whether to participate in providing their information will be transparent and easily made. 6 We will follow all federal, state and local advertising laws, and cooperate with industry self-regulatory programs for the resolution of advertising practices. 6 Technology ethics in monitoring data transmissions: Due to the very nature of our service, it entails not only the provision of one of the highest quality and fastest transmission of data, but also the personal information of our customers. This information ranges from their age, the use of data, internet sites visited, social security numbers to social media information. In so doing we are of an ethical obligation to not divulge any information as it relates to them. We are aware there are risks in so doing due to the 12 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT fact that such information is accessible by a range of our employees, which leaves the window open for the probability of exposing such crucial and private information. We therefore must employ technology ethics in monitoring data transmission of all information relating to our customers. The following are our ethical approach as it relates to monitoring data transmission: 1 All data should be obtained, collected, analyzed or otherwise used through lawful, legitimate and fair means. In particular, data access (or collection, where applicable), analysis or other use should be in compliance with applicable laws, including data privacy and data protection laws, as well as the highest standards of confidentiality and moral and ethical conduct (Data Privacy, n.d.). 2 All data use must be compatible or otherwise relevant, and not excessive in relation to the purposes for which it was obtained. The purpose of data use cannot be changed unless there is a legitimate basis (Data Privacy, n.d.). 3 Strict standards of data protection will be employed as it relates to employees obtaining, accessing, collecting, analyzing or otherwise using data. All employees log-in activities will be monitored (Data Privacy, n.d.). 4. All data obtained by Advanced Data Transmission, Inc. will not be disseminated out to or used by an other entity for the purposes of but not limited to acquiring funding, or intrusive advertising. 5. Where possible, the assessment should be completed by a diverse team of experts (e.g. legal, ethics and security experts as well as subject-matter experts) and, where reasonably practical, a representative of the group(s) of individuals who could be potentially affected (Data Privacy, n.d.). 13 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT 6. Personal data should be de-identified, where appropriate, using such methods as aggregation, pseudonymization, or masking, for example, to minimize any potential risks to privacy, and taking into account the likely occurrence of any potential harms associated with data use and non-use. 7. Any retention of data8 should have a legitimate and fair basis, including beyond the purposes for which access to the data was originally granted, as specified (Data Privacy, n.d.). 8. All data-related activities should be designed, carried out, reported and documented with an adequate level of quality and transparency (Data Privacy, n.d.). 7 Current Environmental Concerns: Sustainability is a concept that, over the past two decades, has gained and continues to gain traction in a wide range of institutions and sectors, from national to local governments, from agriculture to tourism, and from manufacturing to construction. Several countries have articulated policies centered on sustainability, using it as a framework on which to base integrated strategies covering the environment, the economy and quality of life. Climate change is the big environmental problem that humanity will face over the next decade, but it isn't the only one. A look at some of them from water shortages and loss of biodiversity to waste management are challenges we have ahead of us (Corporativa, n.d.). The third decade of the 21st century has begun and the environmental challenges we have ahead of us, set out in the UN's 2030 Agenda for Sustainable Development, are many. This global plan of action adopted in 2015 puts forward specific measures to achieve a world that is fairer, more prosperous and more respectful of the environment within ten years. In this regard, the UN itself warns that we are running late, and the question now is whether we still have time 14 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT to save the planet. The following is a few of the he main global environmental problem and concerns: Global warming Due to CO2 emissions — which according to the UN have increased by almost 50% since 1990 — is accelerating climate change and threatens the survival of millions of people, plants and animals by causing meteorological events like droughts, fires and floods, which are becoming increasingly frequent and more extreme (Corporativa, n.d.). Pollution problems and their effect on health: The World Health Organization (WHO) estimates that 90% of humanity breathes polluted air, so is calling for a reduction in air pollution to cut rates of respiratory illnesses, thus preventing seven million deaths a year. Contaminated water also causes major health problems and five million deaths a year according to Oxfam Intermón. The UN advocates eliminating dumping, minimizing the use of chemicals and treating more waste-water, among other measures (Corporativa, n.d.). Protection of the ocean: The oceans have become the giant waste dumps for plastic. What's more, there are other serious environmental problems related to the oceans such as damage to ecosystems due to global warming, dumping of pollutants, waste-water and fuel spills. The UN calls for improved management of protected areas, giving them sufficient resources, and reducing overfishing, pollution and acidification of the ocean caused by the increase in the earth's temperature (Corporativa, n.d.). Energy Transition and Renewable: 15 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT While energy accounts for 60% of global greenhouse gas (GHG) emissions, the UN calculates that 13% of the world population lacks access to electricity and that 3 billion people depend on fossil fuels for cooking. This situation requires an energy transition towards a cleaner, more accessible and efficient model based on the use of renewable energy sources to build communities that are more sustainable, inclusive and resistant to environmental problems like climate change (Corporativa, n.d.). Sustainability food model Intensive food production harms the environment by depleting the soil and damaging marine ecosystems. What's more, overexploitation of natural resources has put food safety and the availability of drinking water at risk. The UN considers it essential to change the food production model and our food habits, including a more plant-based diet featuring local ingredients to save energy and reduce CO2 emissions (Corporativa, n.d.). Despite continuous attempts to curtail the ravages of all aspects as it relates to damage related to the environment, it is more than likely that the the situation will continue to get worse. This encompassed with a global population prone to increases in waste and a culture based on innovation more and more people are looking at a future based on a move away from earth and the establishment and sustainability of individuals and societies on different planets. Ethics or a lack there of, has presented a move by governmental bodies around the world to take a general approach to that of all aspects related to an environmentally sustainable future. A move towards the use of renewable energy, food production processes that allows for synergy of the environment and the ever evolving innovations that promotes the use of energy efficient products are just a few of the many. With the advent of time, we will see this continual transition. 16 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT While individual activities are not, by themselves, sufficient to create a more sustainable society, they are invaluable. Individual practices will help initiate and reinforce structural changes, hence, increasing consumer demand for locally- and organically-produced food will encourages producers and distributors to make it available. Large-scale policy changes will also transform the national food production and distribution system, with obvious pressures from the necessary stakeholders. . 17 ETHICAL DECISION MAKING AND BUSINESS CULTURE: STAND-ALONE PROJECT References Admin, C. (n.d.). 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