Corporate Governance and Ethical Responsibility Research Paper
Corporate Governance and Ethical Responsibility
Ethics is a part of life. These are policies and procedures which determines what is permissible and what is to be followed. An individual has to fulfill his ethical responsibilities in every phase of life. Corporate governance is higher ethical standards. It actually makes a peculiarity between legal and ethical acquiescence mechanisms and thus prevents the inefficiencies to restore confidence and the ability to build trust.
Corporate governance and ethical responsibility if combined together is known as Ethical Corporate Governance which refers to all the procedures and policies that a corporation create in order to tackle issues and to respond the difficult situations. (NHS, 2010) Ethical corporate governance also emphasized as to how management and every day activities should be conducted with proper regulations.
The basic idea behind formulating a corporation is to manufacture products and to provide services in order to generate money or profit and to become market leader but ethics determine to have a balance between earning profit and corporate social responsibility that is to work for the welfare of common people. (Noble, 2009) However that intentions or objectives must be balanced with controls that make certain a company pursues turnover without crossing over the line into the realms of unethical behavior.
The research paper that needs to be discussed is about a doctor DoRight who is responsive and ethical to his job. (Health, 2012) Once he noted that several patients got dead due to inefficiency or negligence of staff which he reported to higher authority. Higher authority promised to conduct investigation but did not do so till two years. He further raised the issue by meeting with trustees and community organizations. The duty of loyalty is major concern here which is addressed below.
Determine at least three (3) different internal and external stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital.
Stakeholders are individuals or groups who are affected by the actions of an organization. They play a vital role in any organization because they have a direct or indirect venture in the outcome of the policy-making and planning process. (NHS, 2010) There are several internal and external shareholders to hospital like patients, staff, society, stockholders, etc. The hospital is responsible to fulfill the needs of everyone through duty of loyalty.
The Universal Human Care Hospital has both internal and external shareholders. The main internal shareholders are board members, patient representatives, the overall staff or the nurses staffing committee, legal lawyers, upper management and administrative representatives. (Noble, 2009)
The patient representatives, as the name indicates represent the queries and problems of patients. They are responsible for maintaining customer client relationships; they investigate about the inappropriate medical cases and they bring the truth to the mark. Nursing staff is responsible for conducting the proper care of patients. (Werner, 2012) It is necessary to recruit qualified and efficient nurses or staffs who know how to care patients and how to ensure their health and safety.
Lawyers are employed to solve the legal cases of hospital. The legal cases include purchase of land and construction of building; in addition to that they take care of all the inefficiencies. Administrative representatives are responsible for medical management and all the necessary apparatus. They have to manage the authority of hospital that is to lead the hospital and they have to make sure that hospital operate efficiently.
The external shareholders to the Universal Human Care Hospital are pharmaceutical representatives or suppliers, patients, hospital equipment representatives and insurance company. (Noble, 2009) The pharmaceutical representative or suppliers of medicines will manage the incoming and outgoing of medicines and to ensure research of proper medication along with new offerings. Hospital equipment representative has to manage all the apparatus, utensils and equipments. (Health, 2012) He has to conduct proper examination so as to every apparatus is available as per requirement.
Insurance company acts as a shareholder because it supports the hospital in case of emergency like fire or any other natural disaster. If hospital building got demolished or some internal failure so insurance company will come to handle the case.
Compare and contrast potential conflicts of interest that may exist between the internal and external stakeholders.
As discussed previously that stakeholders are those people who are affected by the performance of organization. Internal stakeholders are directly associated with the performance while external stakeholders are indirectly associated with the organization. Internal stakeholders participate and coordinate in every function; they provide funds, allocate resources and provide publication of the strategy from a local health where as external stakeholders develop their relationship through word of mouth. (Riley, 2012) They share their experiences from hospital. Conflicts between two should be managed carefully otherwise it will lead to downfall of business.
As far as potential conflict of interest is concerned then both internal and external stakeholders share some conflict. Comparing trustees or shareholders with customers/patients then patients want health and safety from hospital, they want proper care and concern and above all reasonable cost that is health within budget bur shareholders want their hospital to grow, they are concern with the reputation of hospital whether it comes from tit or by tat. (Werner, 2012) Trustees want wealth and profit.
Medical staff, nurses can have conflict with patients. The duty of medical staff is to provide support, assistance, carefully treat the patient and to provide them with proper medications where as customer can have conflict when they show carelessness. (Richter, 2012) As health is the prominent factor and any death due to negligence creates a massive issue. Safety of patients cannot be compromised.
Further, suppliers and hospital administration holds conflict when supplier cheat or if administration does not give money on time. Conflict also occurs during negotiation with suppliers. Hospital Managers wants to have a rise in prices while patients want everything at low prices. Society wants hospital to conduct something for welfare where as board of directors are keen towards money making. (EIC, 2010) Hospital can conduct free medication programs like free injections to society for Removal of hepatitis. But it will be expensive for hospital and benefit for society, so interests different.
Regardless of the regulations and laws administration structures, zoning, health and safety, the devotion of the president to the hospital will take superiority. Besides all contrasts, the main concern of everyone is to have a prosperous state with healthy people. (Noble, 2009) The main objective of hospital besides enjoying profits is to reduce disability, illness and to continue prospering as the world’s best hospital.
Discuss whether Dr. DoRight has fulfilled his ethical duty by reporting the illegal procedures.
Dr. DoRight being ethical has reported about the negligence and careless attitude of medical staff and nurses. When he joined Universal Human Care Hospital he discovered patients suffering from serious deaths. By investigation he found that it is due to inefficiencies of hospital workers as there was no proper supervision. He also observes staff committing serious blunders and errors.
The doctor being professionally responsible reported the issue to higher authority or upper management because according to him, loss of a patient will adversely impact whole family and reputation of hospital. (EIC, 2010) Although before recruitment, an oath is taken from each and every worker which clearly states that staff should conduct proper treatment and have to fulfill the responsibilities completely.
The higher authority promised to investigate but did not take serious steps till two years. DoRight noticed that the trend of loss of life is increasing day by day. Further he controls the responsibilities of hospital to search out where the staff is lacking. He also consults with other trusts and hospital committees to resolve the issue.
DoRight has fulfilled half of his duty by reporting about illegal conduct and later he took every possible step to fulfill his ethical duty. The thing where he lacks was independency. DoRight was dependent on others to take action; he informed about the situation but did not have serious response. (Werner, 2012) On the other hand if himself he has conducted proper investigation with the assistance of detectives of crime investigation departments so he can surely handle the case by conducting investigations, documentations and reporting of patients.
According to given opinion, Dr. DoRight’s moral duties were not absolutely fulfilled. It is because he was acquiescent antagonistic for two years while soothing noticing patients were dying. (Riley, 2012) It was his ethical obligation to follow up on the examination on a regular base, commence an even more aggressive plan of action. He has got some authority and based on the authority he was allowed to involve a third party entity.
Describe the deontology principle and apply it to the ethical dilemma that Dr. DoRight faces in this case.
Deontological principle deals with the moral obligations. It deals with the perception of people that how different people perceive different thoughts and behaviors. There are some behaviors and conducts which are acceptable while others are unacceptable. (EIC, 2010) Some conducts are right while others are wrong, but the definition of correct and incorrect also differs from one culture to another.
Some attitudes are so basic that they do not need description or set of understandings. These are universal truths like to steal something is unethical, to fraud, to deceive is illegal and to lie for one’s loss is immoral whereas to help someone is ethical and to save someone from trouble is moral.
Ethics is a set of moral principles. Obviously morals are based on diverse views so it is significant to understand the varying perceptions of people. Deontological morals are actually exemplified or portrayed by concentration upon adherence to self-determining ethical regulations. (Rainbow, 2012) It is the understanding and practice that there is a respect for life, fairness, and honesty despite the consequences and no matter the affect on the minority or majority of people affected.
To act in an ethically responsible manner, one should know what are the correct codes of conducts, what rules and regulations one has to follow, what one has to adapt and what correct rules exist to regulate the duties. (EIC, 2010) If an individual runs accordingly with moral behavior he is following the right path otherwise wrong.
Actually, in deontological principle duties, rules, and obligations are determined by God. Being moral is thus a matter of obeying God. (Johnson, 2011) As far as the ethical dilemma faced by Dr. DoRight is concerned then he wants to fulfill his moral obligations but due to dependency he does not. He hold some authority, if he want he can opt for the right path but he remain passive for years.
DoRight knew it very well that the main issue is negligence which is unethical. It is the duty of staff to carefully treat patients; negligence is immoral and thus disobeying God.
Describe the utilitarianism principle and apply it to the ethical dilemma Dr. DoRight faces in this case.
The utilitarian ethical theory is founded on the aptitude to forecast the consequences of an action. Actually in utilitarian principle, majority is authority. It is not for all time apprehensive with righteousness, beneficence or autonomy for an individual if oppressing the individual leads to the solution that benefits a majority of people. (Sexton, 2008)
It does not deal with ethically correct boundaries but it influences on best possible case that is the thing which is in favor of majority or the thing which is accepted by mainstream will be accepted. Utilitarianism is solely concerned with achieving the maximum good. For example, a pharmaceutical company may operate by the principle that it will release any officially approved drug with some side effects as long as it helps more persons combat a particular disease than the number troubled by a minor side effect. (Rainbow, 2012)
Speaking about DoRight, then majority of patients were facing death without any reason so he should conduct investigation himself without taking care of others. Although it is unethical to conduct legal investigation without prior permission of management but it will benefit majority of patients. (Anderson, 2010)
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