The Ethical Dilemma – How to Make the Right Decision Essay
The issue of ethical dilemma is something human beings cannot let alone. It is evident that it remains part of their life. Someone finds himself in such a dilemma. Most of the time it is proper to make the right decision when in such a situation.
Personally, I believe the right decision always lies with your conscience. When in an ethical dilemma, making the right decision goes a long way in measuring someone’s ability to be responsible in future (Carter, C. & Clegg, S, pp 125).
My ethical dilemma
Sometime last week I was faced with an ethical dilemma which made me choose between friendship and truth. I was at home watching movies with one of my schoolmates. Then a kitten jumped through the window and in to the house. I did not mind as am used to seeing it in our home most of the time.
It belonged to the next door neighbor. My friend got so excited and even held it in his palm. He kept on telling me how cute it was. He went to the extent of saying he will leave with it, I thought he was joking. In the evening, I decided to see him off. He begged me to allow him go home with the kitten and bring it back tomorrow.
I did not want to allow him do this, as I knew the first place our neighbor could come looking for her kitten was our home. We argued for a long time, and at last I allowed him to leave with it just to please him because he was my friend.
As we were walking down the road the kitten jumped off my friend’s palm straight into a truck’s path. It was knocked down and died on the spot. My friend begged me not to tell the owner what had happened. He even made me swear, and because he was my pal I accepted everything just not to hurt him.
When I went home that evening, I found my neighbor at my place. I was asked whether I had seen the kitten. I did not know what to say. If I told the truth, I was going to lose my friend. If i told a lie, I would save my friendship but I could not stand the guilt of lie to my parents. I also believed my neighbor needed to know what happened to her kitten. After a lot of thinking, i decided to tell the truth.
It is noteworthy that I acted in the right manner, as I could not tell a lie just to protect my friend. He acted unethically, and I should not do the same by protecting him. I find it so uncomfortable, when I have to swear not to do something then I end up not honoring my oath.
In this situation, I could not hide the truth when I knew clearly what consequences I was going to face. I knew I could still talk to my friend and tell him why I chose to stick to the truth. I could not allow my friend to manipulate me in to tainting my ethical integrity (Trevino, L & Nelson, K, pp 7).
I believe when someone is in an ethical predicament he is supposed to make a decision that will stand the taste of time. Making decisions just to suit that particular time, and external factors may not work appropriately.
When one makes such a decision he must be affected to some extent. If I could have protected my friend, I could always feel the guilty whenever in the presence of my neighbor. I also could have branded my self a dishonest person (Trevino, L & Nelson, K, pp 9).
Carter, Chris. & Clegg, Stewart. Business ethics as practice: representation, reflexivity and performance. Heltenham.UK. Edward Elgar Publishing, 2007 125
Trevino, Linda & Nelson, Katherine. Managing Business Ethics. New Jersey: John Wiley and Sons, 2010 7-10
Ethical Dilemma in Healthcare Administration Essay (Article)
Healthcare administration faces ethical dilemma in providing prime health services and maintaining the economic status of the healthcare system concurrently. The administration must stringently balance health services and economic issues that are intrinsic to the healthcare system.
Hornbeak explains that, health care administrators have critical role “…in overseeing the moral conduct and missions of their institutions while at the same time maintaining the economic viability of those institutions, but these two major functions can clash and create dilemmas that complicate the practice of health administration” (2011, p. 1).
The ethical issue regarding economic viability of health care institutions elicits ethical dilemma where two views arise. The first view questions how health care institutions can ethically concentrate the administrative functions on the issues of health only and remain economically viable and sustainable at the same time.
The second view ethically doubts the administrative capacity to juggle both health care and economic issues, without compromising the primary role of offering quality health care in the society. Therefore, how does the health care administration resolve the ethical dilemma amidst demands of quality health care and economic constraints?
Health care systems have a noble responsibility of ensuring that they provide quality health care services that are affordable and accessible to all people. Other responsibilities such as integration of business practices into the system seem to have encumbrance effect that would lead to compromised health care services.
The integration of business practices into the health care system has elicited ethical concerns that have resulted into ethical dilemma in the administrative responsibilities. The Joint Commission on Accreditation of Healthcare Organizations (JCAHO) “expanded its patient rights standards to include requirements for assuring that hospital business practices would be ethical in 1995” (Laura, Cherry, & Darragh, 2009, p.1).
JCAHO established ‘patient rights and organization ethics’ that classified two types of ethics involved in health care administration; clinical and business ethics. Clinical ethics govern the relationship between healthcare and patients while business ethics deal with the relationship between health care and its suppliers.
Currently, the health care system is struggling to resolve the ethical dilemma that threatens to stall provision of quality health services and sustainable utilization of health care resources. Ethical concerns root for the distinction and separation of clinical ethics and business ethics in order to avoid complications of the responsibilities in the health care system.
Laura, Cherry and Darragh argue that, “while marketing and admission practices are seen as issues related to ‘business’ they can lead to unneeded admissions or demand for unneeded services, both of which can unnecessarily expose the patient to the risk of side effects or complications” (2009, p. 2).
Without clinical and business ethics to streamline the relationship between essential and non-essential health care services, the business aspect would take precedence since profits is the ultimate objective. On the other extreme, stringent clinical ethics may render health care system economically unviable resulting into poor healthcare services. Therefore, health care systems have great challenge of resolving the ethical dilemma that threatens the quality provision of services and sustainability of resources.
Health Care Ethics
Historically, healthcare system has been focusing on the clinical ethics while neglecting the importance of business ethics. By doing this, the healthcare system erred because “…it sought to deal with specific clinical ethical issues before assessing the ethical organization life and ethical infrastructure of the whole system which has affected the resolution of the ethical dilemma” (Silva, 1998, p.26).
Clinical ethics govern the relationship between the healthcare system and the patient by ensuring that health professionals do not comprise the quality of health services that patients receive.
According to healthcare professional ethics, the primary goal of any health institutions is provision of quality, affordable, and accessible health care services that improve health standards of the people. However, integration of business ethics into the healthcare system is a threat to clinical ethics.
Although the primary goal of the health care system is provision of quality services, it is impossible to sustain the use of available resources without venturing into business.
Health institutions are in strategic position to conduct lucrative businesses aimed at improving the quality of services they offer to patients. Faced with this truth, healthcare administrators have a challenge of balancing the clinical and business ethics because there is tendency to neglect clinical ethics and concentrate on the business ethics.
Healthcare institutions have become business oriented in the United States since “…health care organizational culture has shifted from a service oriented one to a monetary oriented one characterized by product lines, stocks, profits, competition, megamergers and, ultimately, survival” (Silva, 1998, p. 3).
The survival of the health care system may entail increasing the costs of services, falsifying diagnoses, admitting or discharging patients unprofessionally with the prime objective of earning profits.
Solution to Ethical Dilemma
To address the ethical dilemma in the healthcare system involving clinical and business ethics, the administration should focus its attention on building cultural and ethical infrastructure to regulate all activities in a health organization.
In addition, the administration should instill ethical principles to healthcare professionals at all levels of the organization through education and strong leadership that advocates for the postulated ethics.
Silva argues that, “in any attempt to change the values of an organization … the contents of the existing organizational culture must be dealt with directly for positive change to occur” (1998, p. 4). Therefore, the issue of clinical and business ethics calls for cultural and ethical infrastructure for it to have a lasting solution.
The resolution of the ethical dilemma requires an overhaul of organizational culture and ethics. Change in cultural and ethical infrastructure is imperative as it provides professional environment where ethics guide all healthcare practices.
Corporate leadership is not enough to transform cultural and ethical infrastructure because “not only the leaders but also the followers must ascribe to common, sound, and shared ethical values, just as unethical leadership can taint followers, morally tainted followers can impede or stop the goals of ethical leaders” (Laura, Cherry, & Darragh, 2009, p. 7).
Therefore, transformation of the cultural and ethical infrastructure needs concerted efforts of both the administrative and health professionals.
The ethical dilemma in the administration of healthcare system is affecting the delivery of quality services and sustainability of the health resources available. The healthcare system administrators face the challenge of striking a balance between clinical ethics that seek to provide standard services to the patients and business ethics that take care of the sustainability of health resources.
Since both clinical and business ethics are critical in the healthcare system, cultural and ethical infrastructure is essential for the resolution of the long-standing ethical dilemma and the realization of defined administrative roles.
Hornbeak, J. (2011). Health Administration Ethics. Spring Journal, 12, 1-10
Laura, J., Cherry, N., & Darragh, M. (2009). Organizational Ethics and Health Care:
Expanding Bioethics to the Institutional Arena. National Reference Center for Bioethics Literature, 9(5), 1-14.
Silva, M. (1998). Organizational and Administrative Ethics in Health Care: An Ethics Gap. Online Journal of Issues in Nursing, 16, 1-11.
Ethical Dilemma in Accepting or Rejecting of Offers Problem Solution Essay
- TO: Henry Carpenter, ABC, Inc. Manager
- FROM: Clare Cook, XYZ, Inc. company representative
- DATE: October 1, 2010
- SUBJECT: Offering Material Assistance.
Having informed me in confidence about your son’s requirements to work on a project at school and your financial position, I have resolved to offer desirable assistance. I propose to send over to you a digital camera and color printer and charge only the company’s cost on the devices as per my company’s regulations.
My decision to take this action was after a detailed and careful consideration of the legal requirements, company laws, responsibilities, and obligations I am bound to while working with this company and decided to act in my capacity as our company’s representative.
In addition to that, I took this course of action bearing in mind the close working relationships between your company ABC Inc. and XYZ Inc., my cordial working relationship with you, information of your budgetary constraints you confided to me, and my knowledge about you.
I am entitled with the authority to act in the capacity as XYZ Inc. company representative to enhance client relationships as I deem it necessary.
Looking forward to improving our company’s working relationship with you and acceptance of the offer I am making to meet your son’s needs.
Both Henry and Clare hold positions of responsibility which come with business obligations and responsibilities. Henry is ABC Inc.’s marketing manager and Clare is XYZ Inc.’s representative .ABC deals in computer equipments and office supplies in the retail market.
XYZ sells new products to ABC Inc. Henry is responsibility for purchasing new products for ABC Inc. from Clare. There is a business relationship between Henry and Clare. Clare and Henry are single parents and do occasionally meet and spend a lot of time together.
Henry confides to Clare about the failure of his son’s school to give him prior information about his son’s projects and the requirements for the project. Henry discloses his budgetary information to Clare and the position that he could not afford to meet the expenses for a new digital camera and a color printer.
Due to their relationships, Clare offers to use her position as XYZ Inc.’s representative to give Henry her organization’s digital camera and a color printer. Clare clarifies to Henry that she had authority to act in that manner.
Should Henry accept Clare’s offer of the digital camera and color printer for his son for the sake of improving customer relationships? What could be the consequences of Clare’s actions of passing over company assets to Henry in relation to her position in the company she works for? What are the ethical considerations for Henry in accepting or rejecting Clare’s offer?
Should Clare have acted by providing Henry with his son’s requirements on private information?
Here, Henry is in an ethical dilemma to accept or to reject Clare’s offer of company property. On the other hand there is a direct conflict between Clare’s ethical considerations and her actions. Clare has to make a choice.
What will be the legal implications on the part of Henry in accepting a camera and a color printer for his son and to Clare in providing that assistance in view of their positions?
Henry’s dilemma could be solved using the utilitarian theory in decision making. The utilitarian theory combines both Hedonism and consequentialism. Hedonism draws on the extrinsic good or bad and the resulting pleasure or pain of one’s actions. Consequentialism draws on the consequences of one’s actions.
Henry has to evaluate the moral integrity of his decision in accepting or rejecting Clare’s offer and the consequences of his decision. Henry’s action not only could result in pain or pleasure to Himself, Clare, the companies they work for, but also to the business environment as a whole. Henry’s actions should reflect an upright, fair, and just person (Melden 120).
Under this theory, Clare has to critically consider the consequences of her actions and their impact on her job and the company she works for. Giving the color printer and digital camera may result in greater pleasure for Henry and his son, but if the action results in greater pain for her, she may not be justified to act in that manner.
Giving the color printer to Henry may result in greater pain if the company’s equipments are given to Henry on the basis of his relationships with Clare. That could have the possibility of generating distrust on the moral integrity of Henry and Clare. Henry could be viewed with distrust by accepting the offer if it causes pain to Clare such as getting reprimanded, creating a bad image, and damaging the company’s goodwill.
On the other hand, if Henry receives the color printer and digital camera, he has to evaluate the impact that action will have on his position and the relationship between him, Clare, and his company. Accepting the equipments may cause displeasure and be in direct conflict with his company’s laws.
Some of the consequences may include an undue influence by Clare on Henry for a good business relationship. Therefore, the act may not be moral.
Each act has some intrinsic good and bad. Clare and Henry have to carefully weigh the consequences of their actions to themselves and their respective companies of work and the moral justification of taking a course of action each chooses (Melden 105).
According to the theory, the utility of Henry’s and Clare’s actions should reflect a degree of moral integrity. Henry’s act of accepting the offer should purely reflect a utilitarian act evident of a just, fair, honest, caring, and trustworthy individual not to cause Clare pain. On the other hand, Clare should weigh her action in view of its consequences to herself, Henry, their respective companies, and the environment.
The Golden rule
According to Melden, the Golden rule lays emphasis on the need for individuals to do to others as they would like others to do to them (100). The reciprocity of this theory emphasizes on positive and passive forms, prohibitive passive forms, positive active forms, and the silver rule (Koons 1).
Fieser argues that this theory is very popular and traverses many cultures of the world (1).
If Clare decides to give Henry the equipments he mentioned to Henry, she could foster and enhance the working relationship that exists between her and Henry in addition to enhancing their own relationships. On the other hand, Henry should carefully weigh the kind of relationship between him and Clare and the effect of the choice of the action he should take.
Given Henry’s position, Clare is justified to act by giving him the color printer and the digital camera. However, Henry should evaluate the fact that if he were in the shoes of Clare, the moral values attached to his actions and their effects on Clare’s job, himself, and the companies they work for.
The golden rule lays emphasis on the reciprocity of actions by either party in an issue. Henry has to evaluate Clare’s actions by carefully identifying and determining if her action is simply reciprocating the business offer between both companies and his good relationship to her. On the other hand, Clare has to carefully evaluate if by doing Henry the act of giving him the digital camera and color printer, she and others are bound to gain from that act.
Kant’s “categorical imperative”
This theory focuses on the premise that each individual should act in a manner that one’s action becomes a universal law. The deontological theory has its foundation on the morality of duty. This raises the question on the morality of Henry and Clare’s actions. Moral duty is innate.
We have personal inclinations that are summed up in our raw desires and wants and our actions are enshrined in moral statements. The Act and rule imperatives significantly underpin the general form of this theory (Liuzzo and Anthony 23). The theory lays emphasis on the moral standing of actions.
Henry’s action could be moral and in a manner that it becomes universal because it is universally acceptable. However the benefits he is bound to gain by accepting Clare’s offer has to be carefully evaluated since his act may conflict with other universal values and beliefs. A universal act in this case is one that is acceptable to all and by all. Therefore, Henry’s act of accepting Clare’s offer should be evaluated against the fact of it becoming universally acceptable.
A universally accepted act should reflect fairness and justice on the part of both parties in view of the business, climate, industry, organizational, society, and personal levels. Henry’s act of accepting the offer should reflect fairness and integrity while Clare has to critically evaluate and distinguish between duty and inclination.
Henry has to evaluate the moral nature of his actions if he accepts these equipments by carefully weighing the resulting impact of the action on Clare, her employer, himself, and his employer. By accepting the color printer, Henry could be asserting the universal nature of his actions.
That implies Henry’s act of accepting these equipments is an act that can be duplicated elsewhere. However, careful consideration indicates that this action could look to the public eye as accepting an inducement and not a moral act. This could adversely affect the image of Henry’s company and be a disaster rather than a benefit.
According to Liuzzo and Anthony, this theory focuses on virtue as a trait that should be imbued in human beings (23). Every one runs away from vice but seeks virtue. Such a trait could be good for every person. The theory emphasizes on love, social feelings, and the quality of the relationship between people and the moral motivation for taking certain actions (Fieser 1).
Clare could act based on the love she has for Henry and the social feelings that are likely to be strengthened between Clare and Henry. Clare has strong feelings about Henry’s position and impelled by virtue that has been cultivated in her, she could be justified to give Henry the color printer and the digital camera for his son.
However, she has to carefully weigh if her virtuous deeds are in conflict with the company she works for. Different companies operate on different laws and their employees are bound by different legal requirements. Clare’s decision should also be evaluated for impartiality.
On the other hand, Henry should critically evaluate the motivating factor behind Clare’s offer not to lead to personal conflict and conflict of interest.
Henry should accept the color printer since the act could be ethically correct. In Henry’s view, accepting the digital camera and color printer could result in pleasure and could neither cause Clare nor the companies they work for any harm. Henry could be given these devices by charging some company fee. This could justify Henry’s moral integrity, trustworthiness, and fairness in accepting the offer since he could pay the fee.
The fee payable could alleviate any act of dishonesty in both Henry and Clare. Henry could need Clare to offer him assistance that she could have liked to be given were she in a similar situation. Such could be a universally acceptable act. In this case, this offer is virtuous, human, universal, and moral.
Accepting this offer on the basis of enhancing business relationships with a client and acting consistently with the laws of his employer could agreeably enhance working relationships and enhance the company’s image. However, Henry has to carefully weigh the company costs levied on the digital camera and color printer before accepting the offer.
Fieser, James. Business Ethics. 2010. Web.
Koons, Robert, C. The Problem of Evil. Preliminaries. The Virtual Office. University of Texas. 2002. Web.
Liuzzo, Anthony & Anthony, Liuzzo. Essentials of Business Law. 7th ed. Harbor Town, New York. Career Education, 2009.
Melden, Abraham, I., Ethical Theories. 2nd ed. New York, Prentice-Hall Inc., 1950.
Globalization and Its Impact on the Health Care System: Ethical Dilemmas of Medical Treatment Term Paper
The process of globalization is considered to be one of the most important and influential issues in all spheres of life. Different cultures, societies, and even economies undergo considerable changes within a short period of time. Nowadays people get used to rely on their financial status to have appropriate and in time treatment and do not even want to consider the fact that those people with lower financial income may be in serious need of fast help and medical consultation.
The notion of a global ethics is under a threat because it can be easily misunderstood (Commers, Vanderkerckhover, & Verlinden, 2008); as a result, many discontents, constant briberies, and inappropriate treatment of patients take place. In this paper, the ethical dilemma concerning the idea of bribery in the health care system will be analyzed.
Globalization is one of the processes that have a considerable impact on the development of the health care system and the way of how people are able to get treatment; the spread of an ethical dilemma that has financial backgrounds is evident nowadays, and globalization is defined as one of the main causes of the unfair treatment and imprudent deaths.
Basics of the health care system
The main purpose of healthcare is to treat or prevent different types of illness. The ways of how medical experts are ready to provide patients with necessary services influence considerably human lives, relations, and abilities. One the one hand, globalization is regarded as a successful tool to solve poverty challenges, problems connected with human hunger, and diseases which are hard to diagnose and treat (Pang & Guindon 2004).
On the other hand, there are a number of negative effects of globalization which are evident for the sphere of health. If a person fails to get an appropriate treatment or, in other words, present a necessary bribe, the results may be rather disappointing: a person is not able to perform his/her functions in society and to improve his/her skills in the chosen sphere.
This is why it is very important to evaluate the conditions under which health care services may be provided and the ways of how the process of globalization may influence health care services and possible improvements of human activities. Health care systems work to save human lives, and there is no other thing more important that a life of a person.
Analysis of globalization and its effects on the health care system
The relation between globalization and health care systems is evident and even considered to be rather complex so that a serious analysis is required.
The effects of globalizations vary in their forms: they may be direct “at the level of whole populations, individuals and healthcare delivery systems” and indirect “through the economy and other factors, such as education, sanitation and water supply” (Pang & Guindon, 2004, p. 16). For example, it is necessary to admit that globalization influences the spheres of trade, business, and food; it leads to considerable health risks.
Tobacco companies offer a number of goods for people of different age and different social status. Those people who have money are able to buy good tobacco goods and enjoy their purchases. Poor people who suffer from a kind of tobacco dependency have to buy the goods which are cheaper and of poor quality.
Poor quality of tobacco products worsens a lot human health, and the vast majority of smokers should address hospitals to get proper care. It is stated that “the death tool from tobacco abuse alone will reach 10 million a year over the next two decades. Up to 70% of these deaths, cased by lung cancer… lung diseases… and many other tobacco-related ailments, will occur in developing countries” (Pang & Guindon, 2004, p. 17).
Another impact of globalization on human health is connected to drugs and their fast spreading in society. Many medics are eager to earn more on making drugs, and the possibility to spread them over the whole world (that becomes possible due to the process of globalization) is a good chance to achieve success in the chosen activity. So, globalization is still a terrible process that influences considerably human health and the ways of disease treatment.
Ethical dilemmas caused by the process of globalization in the health care system
There are a number of ethical dilemmas which are connected to health care and globalization. Some of them are based on how people may get treatment; some dilemmas are based on the idea that people with different financial status get different kind of access to medical treatment; and some dilemmas are connected to the fact that different people cannot prevent illnesses in the same ways due to their financial inabilities or some other reasons; and finally, some medical professionals are eager to earn money on making harmful drugs for people without considering the fact that some drugs are too dangerous for human health.
For example, in the United States of America, an ethical dilemma is based on the fact that many young medics try to check their abilities and knowledge and develop some drugs. The process of globalization makes the unity of different cultures possible, so, young experimenters are free to use different sources of information, approaches, and components to develop their activities which are harmful for human health.
In some developing countries (Asian, African, and European countries), the idea of bribery becomes widely spread, and medical treatment depends on a number of financial issues: if it is possible to pay much money for treatment, people can get medical help in time and under the most comfortable conditions.
If incomes are not too high, people have to wait a lot, communicate with different people, and think about the most appropriate ways to get help and prevent disease development. The most crucial ethical dilemma connected with globalization and health care is all about money and its impact on human treatment. Is it still necessary to consider financial status and appreciate it more then human health and human lives? It is hard to give a clear and true answer.
Risks and consequences of the ethical dilemma
Risks of the dilemma under discussion are huge indeed. People put themselves under a threat because of inabilities to define the importance of a human life. Globalization poses a number of risks to global health (Pang &Guindon 2004), and current researches prove that “important improvements for the population at risk” are necessary (Mills & Singh, 2007, para. 16).
The most evident examples of risks are the development of tobacco and alcohol spread all over the world with their consequences of terrible diseases which are not always possible to treat and prevent.
Globalization should promote healthy style of life and abilities to improve living conditions. So, ethical dilemmas connected to health care are usually cause by the process of globalization, and people should take care of their actions and choices. It is necessary to evaluate citizens’ demands and necessities. It is wrong to rely on financial support only but appreciate human life as it is. Governments should follow the ways and methods chosen by local medical organizations and check the effectiveness of their work.
Commers, R., Vanderkerckhover, W. & Verlinden, A. (2008). Ethics in an Era of Globalization. Burlington, VT: Ashgate Publishing.
Mills, E.J. & Singh, S. (2007). Health, Human Rights, and the Conduct of Clinical Research within Oppressed Populations. Globalization and Health. Retrieved from <https://globalizationandhealth.biomedcentral.com/articles/10.1186/1744-8603-3-10>
Pang, T. & Guindon, G.E. (2004, October). Globalization and Risks to Health. EMBO Report, 5(1), 11-16.
Decision Making Challenges Facing Ethical Dilemma Essay
Decision making is a major managerial function in the sense that the attainment of organizational goals and objectives directly depends on the quality of decisions made by managers. In the same way the performance of line managers is judged by the quality of the decisions they make. Good management will be largely associated with quality and timely decisions (Williams, 2002).
The kind of decision that Martha faced was an operational decision. These are decisions that need to be made in the course of day to day implementation of organization’s objectives. These are decisions made by middle level managers such as supervisors on issues that come up in the process of their work (Adair, 2010).
Decision making challenges
This refers to the study of groups and also the general terms for group processes. A group is two or more individuals who are connected to each other (Adair, 2010). For instance, task groups are groups which seek for solutions to a problem or generate decisions together. The inability of Martha to make a personal decision concerning the customer’s complaint without involving the task group that makes the company decisions posses as a challenge.
Biases in perception
This is whereby different people tend to view same issues differently depending on their frame of reference, expectations, selective exposure stereotypes or interests. For this reason Martha is faced with a challenge because her bosses do not seem to take the customer’s complain with a lot of weight as she does herself.
Fallacies in reasoning
A fallacy is essentially an error in reasoning. Fallacies are often repeated and may make one think they are true. In the case at hand, Herb has heard the customer’s complaint but he believes having marketed his fertilizer for 35 years, there should not be complains. This is a fallacy on his side, and it poses a challenge to Martha’s decision making.
This refers to the way people are similar and different in there thinking, feelings and behavior. In the case at hand, what Martha feels as a big issue is ignored by the top management posing some difficulties in the making of a decision.
The recommendations to this company are to come up with methods of problem solving so as to solve the prevailing problem. Some of the recommended methods are:
This solution finding technique involves a group of people defining the problem, one person from the group writing down all suggested ideas on a white board. The ideas are then analyzed one by one until the best is chosen. This method encourages creativity and team spirit.
The fish bone diagram
This is a cause and effect diagrams that when completed looks like a fish. It enables members to separate between causes and effects and see the problem in totality. This method has advantages including assisting the group to see the full picture, serving as a device for ideas generated and discovering the origin of the problem.
It’s a type of network used to model a progression of decisions. The root of the tree is the decision point with branches being the probability that might lead to a right decision.
Dealing with the customer complaint They should first accept that there exists a problem with their product and apologize to the customer and promise to make the necessary corrections. They should also withdraw the product from the market immediately to avoid further complains, that might tarnish the company name.
Steps followed in problem solving
From the management of Herbs garden products, the following steps could be taken:
State the problem not the symptom
The problem in this scenario is the presence of a poisonous component in the garden fertilizer. A customer having complained about the presence of the poisonous component in herbs garden fertilizer is just a symptom.
Define the present level of the problem
That some customers are already aware of the presence of a harmful component in the company’s product is the present level of the problem.
State the objective which should be achieved
This is what the company expects to achieve as they try to counter the problem. For instance, facing out all the fertilizer containing the harmful component from the market in a month’s time.
Select the most likely causes
They may state some of the causes of the problem as negligence by their producers and also negligence on their own side as management of the firm.
List all alternatives solutions
This involves coming up with all possible solutions. The management of Herbs garden products should come up with a list of alternative solutions and rank them in priority order. The solutions should then be discussed and the most appropriate selected. The decision that is most appropriate should be the one that garners the highest total rating from the listed alternatives.
Making an action plan
Once the appropriate solution has been picked it is important that the company makes a schedule on all the different steps to be followed in the implementation. The schedule should then be adhered to strictly to ensure that the problem is exhaustively addressed.
Solving the problem
This is the final step in solving the problem. After all the activities in the action plan are done then the management can go ahead and directly address the problem. It is important to take in mind the initial challenges brought about by the problem so as to evaluate the solution offered.
Adair J. (2010), Decision making and problem solving, New Jersey, Cambridge University Press.
Williams S. (2002). Making better business decisions: understanding and improving critical thinking and problem solving skills, Oxford University Press.
Ethical Dilemma: Heroin Prescription Essay
The client in question could be suffering from heroin addiction. In this case, there may be need to provide her with medically prescribed heroin to treat her addiction. The ethical dilemma in this case is whether she is sufficiently competent to make a decision regarding this type of treatment. This kind of treatment raises complex ethical problems. One major ethical issue is whether a heroin addict is capable of assenting to prescription of heroin.
Heroin is a drug associated with degeneration of the mind. This raises doubts as to whether a heroin-dependent individual has the mental ability to make such choices. When these questions were put forward to Cynthia, a recovering heroin addict at a local clinic, her reaction was disbelief and amazement. “That’s crazy,” she said, “if you’re addicted to heroin, then by dentition you can’t say ‘No’ to the stuff.” Cynthia’s response can be expressed in the form of a dilemma (Charland, 2002, p. 37).
This essay is about ethical dilemma posed by heroin prescription. The problems raised by the dilemma are serious. The basis of the dilemma lies in the nature of heroin addiction. Heroin addicts suffer from an uncontrollable want to search for and use heroin. As a consequence, they have damaged decisional ability to make choices about heroin.
Ethical debates about heroin prescription seem to have overlooked this point completely. Heroin prescription presents a remarkable angle from which to observe the function of value in mental competence. This also point up why accountability is paramount in any form of competency. There are also interesting similarities between addiction and depression that are important. It has been argued that severely depressed patients may not be competent to consent to research because they care too little about risks.
The problem with heroin addiction is just the opposite. Heroin addicts care too much about benefits that accrue from their use of heroin. Clinical tests of the competency of depressed subjects to consent to research have recently been carried out. We should not assume that heroin addicts are competent to sanction prescription of heroin. Actually, we should assume they are incompetent unless proven otherwise (Charland, 2002).
There are other important ethical issues regarding prescription of heroin. They include the quarrel that pits harm reduction against abstinence; the debate over whether addiction should be viewed as a social or a medical problem; the argument that existing resources are better spent elsewhere; and the worry that there is a risk of promoting the message that heroin addiction is acceptable.
These are just a few scattered themes and examples. Evidently, there is an interesting literature on the ethics of heroin prescription. No resolution of those issues will be attempted here.
For present purposes, what deserves mention is what those discussions omit. Nothing is said about whether the subjects targeted for heroin prescription are capable of competent voluntary consent to heroin. Consent is mentioned, but usually only to say it is important to seek it and to stress those subjects must be properly informed. Everybody seems to assume that it is possible to give a competent voluntary consent to heroin use (Charland, 2002).
In conclusion, it will suffice to give the client be the drug. This is because there is no evidence that she might suffer from decisional impairments that compromise her ability to consent. However, the ability to give competent voluntary consent should not be presumed in the debate of ethics of heroin prescription. The vulnerability of the client to free and legal heroin should be taken into consideration.
Charland, L. (2002). Cynthia’s Dilemma: Consenting to Heroin Prescription. The American Journal of Bioethics, 2 (2), 37-47.
Ethical Dilemma: the Husband’s Right to Confidential Treatment Case Study
This case relates to a HIV positive man, who does not want to inform the wife that he is infected. The man only recently discovered his status after having sex with a woman in a foreign country. In his words, he suspected that he had “picked up something”. The man does not want the issue to come up with his wife because he feels that their marriage has enough problems as it is.
He has threatened to sue for breach of confidentiality if his wife learns about his HIV status from the hospital. The complication with this situation arises from the fact that the wife is a patient in the same hospital; hence, there is likelihood that she will come for treatment in the same hospital.
The ethical dilemma arising from this case is that by applying the Australian Physiotherapists Association (APA) ethical principles, one party benefits, while the other party suffer. According to the APA (1), the four ethical principles require a practitioner to respect the autonomy of the individual, cause no harm, advance common good, and to act fairly.
The ethical principle requiring the respect of the autonomy of the individual can mean that the autonomy of the husband is distinct from that of the wife from. However, there is no easy way to respect the autonomy of each one of them without breach of confidence. Telling the wife of the husband’s status interferes with the husband’s right to confidential treatment. However, keeping quiet with information is likely to cause harm to the wife.
In this situation, the common good to strive for is to control the spread of the HIV infection by giving the wife an opportunity to plan for her protection. This assumes that she needs to know the situation hence someone must tell her first if common good will prevail. However, this means that there will be breach of the husband’s confidence. In addition, the requirement to act fairly also makes it impossible to keep quite with the information, yet talking about it also requires overlooking the desire of the husband.
The reason why there is an ethical dilemma in this case is the consequences arising from either taking action or failing to take action (2). In one case, talking about the situation may potentially break a marriage, which in itself is a very serious consequence. On the other hand, not talking about it puts an innocent person at risk of infection by HIV, which is also a very serious situation. This is the basic reason why there is an ethical dilemma. There is no clear way out, but a risk in both options.
There is a serious legal risk coming from talking to the wife about the husband’s condition. The husband has the option of suing for breach of confidentiality because he is an individual, hence discussing his medical condition with another person makes it breach of confidence (3). However, the wife can also sue for malpractice because it will be negligence not to tell her that she is under considerable risk of HIV infection. So means that whatever action taken under the current condition will have potential legal implications.
Under the APA code, there relevant ethical principles that should aid in getting a solution to this case include the following: patient autonomy, confidentiality, provision of information, best interests, avoid/limit harms, competence, and duties to the patient, to colleagues, to oneself, to others (1). Some of them are at variance because upholding them for the husband interferes with the benefits the wife should derive from them, and vice versa. It makes the case very difficult to deal with.
In order to find a solution, there are two potential approaches. The first approach arises from the possibility that the husband remains adamant and refuses to change his mind about the situation. It will require a difficult ethical evaluation to determine the best cause of action. The second situation would be to pursue the possibility that the husband may change his mind and let the wife know about his HIV status.
In the first case, the principles at variance are the need to maintain the husband’s confidence versus the need to do no harm (1). Keeping the husband’s confidence puts the wife in harm’s way. The greater good in this situation is to let the wife know because she is at a disadvantage in this situation.
The legal issues aside, there is a greater need for the wife to know what is going on than there is to keep the confidence of the husband. HIV is life changing, and has wide-ranging consequences, including life expectancy. Since there is likely to be a legal challenge in either case, it is then not a strong reason to keep the situation quite.
However, it is better to involve the husband in the process. As he pointed out, the marriage has enough problems as it is. However, his response at the time may have been because of learning about his HIV status. It is possible that he was shocked by the news, hence the reaction. Talking to him later, within reasonable time, may yield a more favorable response because he will have a better frame of mind to look at the benefits of letting his wife know.
Australian Physiotherapy Association. The Australian Physiotherapy Association code of conduct. [place unknown: publisher unknown]; 2017 [cited 2020 Feb 7].
Newton L. Ethical decision making: introduction to cases and concepts in ethics. Cham, Switzerland: Springer; 2013. 63 p.
Ethical Dilemma Essay
Professional counselors should establish good relationships with their clients to provide the therapeutic healing that these clients require. They should keep a boundary in the way they relate to the clients to ensure that their relationship with the client does no harm or pose potential harm to the clients. While relating to the clients, counselors should anticipate potential risks of misconduct and take action before it is too late.
This may include reporting the case to the authorities or in cases where the damage is already done, an informal approach should be used to address the issue at hand. On other occasions, informal approach may not be appropriate. Therefore, the ethics committee is involved in order to deliver a verdict. The case can be dismissed and a sanction issued, or charges can be pressed against the accused (Welfel, 2012).
One ethical dilemma that has been experienced in the past is the issue of counselors engaging in sexual relations with their clients. This is a serious form of misconduct clinically, ethically, and even legally. This form of conduct is harmful to the clients, destroys the work of therapy, and damages the profession itself. There is a challenge as to whether counselors exhibiting such misconducts should be criminalized (Gutheil & Gabbard, 1992).
This study will examine a scenario where a 36 year old woman experienced an intimate relation with one of my work-mate counselor. However, she later revealed it to me and forbade me to remain silent about the issue. The following is an analysis of the various approaches that should be used in addressing this issue.
CASAC ethical canon on Sexual Misconduct by Councillors
Sexual contact between clients and their therapists is prohibited. This also includes their family members and romantic partners. The prohibition is based on the harm that is caused on the clients. It also contradicts the fundamental values found in counseling and psychotherapy. This is also not applicable to professionals who may want to initiate a professional relationship with clients with whom they were formerly relating sexually.
This has been prohibited in an effort to promote the client’s trust in the therapist. If such a case happens, the client may not be comfortable revealing the secret in the fear that the information may be passed to the work mates. Therefore, this may disrupt the therapeutic process and cause harm to the client. In this case, the client remained silent with the issue due to fear of victimization. This offense is punishable under the civil or criminal law (Welfel, 2012).
The counselor-client relationship should be kept at the professional level whether the client is still undergoing therapy or is already healed. Nonprofessional relationships, except for the sexual ones, can only be allowed if they are potentially beneficial.
However, before the agreement is made, the therapist is expected to make proper documentation indicating that the client has agreed to the terms. This is to cover a case in which an intended harm occurs. The counselor should show evidence that he or she tried to remedy the harm for it to be justified. Some beneficial associations include attending the clients functions like graduation.
It may be a form of support that the client needs in the healing process. Others may include purchase of a product from the client. This could be a form of financial rescue. Membership in the same professional association with a client may be beneficial to both parties provided that there is a mutual agreement that the relationship between the parties remains professional (Welfel, 2012).
Ethical Principles for counselors
Psychologists should avoid harm on their clients and other people working around them. There exist multiple relationships on occasion when the counselor is performing a different role with the same person, or relating to a similar person by a counselor and the client differently, or promise to enter into a different relationship with the client or the client’s close association. The psychologist should avoid a multiple relation if it may cause deviation from the psychologist’s objectives, competence, and efficiency in performing his/her duties.
The relationship should also be avoided if it may lead to exploitation or harm to the client. However, relationships that do not pose any risk to the professional relationship are allowed. When a multiple relationship proves harmful due to unforeseen factors, the psychologist should take action to resolve the issues with the affected party while strictly complying with the ethics code (Welfel, 2012).
Relationships that are exploitative are discouraged, and psychologists should not engage in these relationships if they are not potentially beneficial (Welfel, 2012). For instance, it is evident that most of the psychotherapeutic patients do not know their rights and may not know the legal steps to take. Some counselors may take advantage and exploit them sexually. The consequences of any relationship that is not professional should always be anticipated before the counselor can engage in them (Thorn, Shealy & Briggs, 1993).
Emotional attachment is common during therapy. The rules of this relationship should be laid down during the beginning of therapy to avoid pain or embarrassment. Professional relationships should not compromise therapy. This is especially if other relationships make it hard for the client to reveal some of his/her personal secrets. This could be avoided by explaining the topics that are relevant in the therapy session (Welfel, 2012).
The imbalance of power occurs when clients agree with the wishes of the therapist in cases when they are not comfortable with the arrangement (Welfel, 2012). An example of a relationship with unequal power is that of pastor and the church members. The issues of power make the clients vulnerable to sexual exploitation. In this case, they do not know how to object to the undesirable practices. If proper boundaries are not maintained by the clergy, incidences of sexual harassment occur (Robinson, 2004).
This destroys the therapeutic process because of no trust and confidentiality between the two parties. There is also the fear of abandonment by each of the parties in case of any secrets revealed. Counselors should maintain strict boundaries with their clients (Welfel, 2012). Sexual intimacies are prohibited, and in most countries, this behavior is criminalized (Thorn, Rubin & Holderby, 1996).
Critical Elements For Making Ethical Decision on Sexual Relationships
A sexual relationship between a therapist and a client is not compatible with the healing process. It is a cause for emotional attachment, and this interferes with the therapy. In such a case, the victim, who in most cases is the patient, is traumatized by the experience. There is the issue of blame with either the patient blaming the therapist and the therapist putting the blame on the patient (Gutheil & Gabbard, 1992).
Before initiating any other non-professional relationship with the client, there is the question of whether the motivation is driven by the interests of the client and whether the relationship is important for the therapeutic process. In this case, sex does not improve the therapeutic process, but only serves to make it worse. It is not in the interest of the client to engage in a sexual relationship since it adds no value to the healing process (Gutheil & Gabbard, 1992).
The issue of performance has to be considered before a therapist can engage in a sexual relationship with the client. It is impossible for the therapist to achieve his counseling objectives. In this case, the sexual relationship may make the client hold back from revealing important information that might aid in the therapeutic process.
The therapist may also be remorseful and may not want to continue attending to these clients. Thus, they opt to seek help in rehabilitation. This is an indication that they cannot operate normally after exposing themselves to sexual relationships with their clients (Schoener & Gonsiorek, 1988).
Misusing the power on the vulnerable clients is not allowed despite the justification provided. It has been argued that therapists fall in love with their clients and consequently establish a sexual relationship. This cannot be justified, and therapists should always consider this before risking their careers and the welfare of their patients with sexual relations. It is a low risk situation for both parties especially the therapists who risk their careers (Deaton, Illingworth & Bursztajn, 1992).
It is a requirement for therapists to anticipate the possible effects of any multiple relationship with a client and other people working closely with him/her. A sexual relationship involves emotions and reduces the capacity to achieve the therapeutic objectives. There should be boundaries created to ensure that the two parties know the areas of discussion in which they should engage.
In case the boundaries are crossed, the two parties will realize this and take a corrective action before it advances to an irreversible stage. This is especially expected from the therapists who takes the lead role in therapy and determines the subjects of professional discussions that the client is allowed to introduce. The issue of sexual relations is clearly avoidable, and it cannot be justified at all (Celenza, 1998).
A sexual relationship between a therapist and a client has repercussions. This should be a consideration before the parties encourage an intimate relationship to develop between them. Once there are legal issues that may lead to the criminalization of the therapist, the client’s therapeutic process may come to an end.
Apart from criminalization, clients may opt to change the therapist due to lack of trust that has developed from the act. This will break the previous ties between the therapist and the client thus hindering the therapeutic process. An immediate solution for such case is mostly geared towards the changing of therapists or clients. However, this may still affect the relationship with other therapists and clients.
Clients may feel reluctant to reveal important information particularly personal issues in fear of occurrence of such a situation in the future. With respect to this case, the client changes the therapist in a bid to forego what happened to her. There are also chances that the situation may get worse due to the trauma that comes from an unfruitful relationship with the therapist. The therapist also risks losing his/her practicing license, which may mean the end of the career. These repercussions are not worth risking.
They involve the emotional effects, as well as every aspect of life including financial abilities, emotional pain and suffering, and social issues. The therapist such as a church minister may also be ridiculed by the public. The changes that occur when a sexual relationship exists are not desirable and cannot be acknowledged socially. Therefore, the relationship should remain professional for it to achieve its objectives (Welfel, 2012).
Ethical awareness is an important element in therapy. Therapists should be guided by the moral vision and value that involves their work. It is also guided by the personal insight and the motivation that attracted the person to practice mental health.
These personal principles should be integrated into practice such that a therapist cannot be lured by external factors to engage in sexual relations (Welfel, 2012). Therapists often argue that the parties in which they were sexually involved consented into the act. This should not be used to justify this behavior. It is hard to determine whether the consent that a client gives is genuine.
There is a possibility that the client was coerced to agree to the arrangement. If it turns out that the client consented willingly, there is also the probability that it was an uninformed decision (Deaton, Illingworth & Bursztajn, 1992). This explains why the professional should integrate personal values with the professional values to establish the best course of action when in an ethical dilemma (Welfel, 2012).
Reasons why Therapists may engage in sexual Relations and possible solutions
The motivation for sexual relations between counselors and their clients is often unconscious. The therapist may have conflicting personal character that makes him or her vulnerable in helpless situations, or loss of self esteem or rage. In this case, the therapist discloses some personal information in an effort to enhance the therapeutic process.
With increased interaction, the relationship changes from a professional one to a personal one with the therapist also seeking an understanding of the client. The therapist also expects the client to view him/her positively and thus deviates the relationship from therapy into personal matters.
Such a relationship increases the chances of a sexual relationship (Celenza, 1998). Such vulnerable therapists should seek counseling from their supervisors to help them in enhancing their ethical values. They can be rehabilitated and offered a continuous in-practice training program. This should be followed by an evaluation program to ensure that the therapy helps them in improving their performance (Schoener & Gonsiorek, 1988).
Therapists who have a childhood history of sexual abuse or withdrawn emotional needs of parents are prone to engage in sexual relationships with their clients. For instance, a therapist reported that his mother kept a distance from him and his two brothers. When he tried to get close to the mother, she got frightened and kept her distance.
However, she encouraged the sons’ lustful behavior as they got older. This is an indication that the sons behaved this way because they lacked an emotional attachment with their mother. As a therapist, this is bound to extend to the clients whereby such therapists may seek recognition from the clients.
This satisfies their emotional needs. However, it is harmful to clients and the profession (Celenza, 1998). In such cases, one should go for further education and training on therapist-client relationships. The therapy style can also be changed to be convenient and reduce the degree of vulnerability for the client. For example, if the therapist hugs clients and holds their hands while comforting them, he can change to a conservative style (Schoener & Gonsiorek, 1988).
Sexual relations between counselors and their clients has been a major cause of ethical dilemma. It is prohibited by law because it interferes with the therapeutic process and causes harm to the clients. Therapists who have engaged in such activities have compromised their careers and their own social well-being. The therapists should observe the professional culture and values in order to prevent such occurrences from happening.
They determine the relationship that exists between the clients and therapists, and define boundaries to be observed. On-the-job training can act as a reminder of these values and a guide to the new entrants into the practice. Therapists who may be inadequate can be counseled by their supervisors in rehabilitation programs to strengthen their values into practice. This profession should be practiced with the interest of the clients at heart.
Celenza, A. (1998). Precursors to Therapist Sexual Misconduct Preliminary Findings. Psychometric Psychology, 15 (3),378-395.
Deaton, R. J. S., Illingworth, P. M. L. & Bursztajn, H. J (1992). Unanswered Questions about the Criminalization of Therapist-Patient Sex. American Journal of Psychotherap, 46 (4), 526-531.
Gutheil, T. G. & Gabbard, G. O. (1992). Obstacles to the Dynamic Understanding of Therapist-Patient Sexual Relations. American Journal of Psychotherapy, 46(4), 515-525.
Robinson, L. H. (2004). The Abuse of Power: A view of Sexual Misconduct in a Systematic Approach to Pastoral Care. Pastoral Psychology, 52 (5), 395-404.
Schoener, G. R. & Gonsiorek, J. (1988). Assessment Development of Rehabilitation Plans for Counselors Who Have Sexually Exploited Their Clients. Journal of Counselling and Development, 67, 227-232.
Thorn, B. E., Rubin, N. J. & Holderby, A. J. (1996).Ethics and Behavior. Client-Therapist: Responses of Psychotherapy Clients to a consumer-Oriented Brochure, 6 (1), 17-18.
Thorn, B. E., Shealy, R. C. & Briggs, S. D. (1993). Sexual Misconduct in Psychotherapy: Reactions to a Consumer-Oriented Brochure. Professional Psychology: Research and Psychology, 24 (1), 75-82.
Welfel, E. R. (2012). Ethics in counseling and psychotherapy. Belmont, Calif: Wadsworth.
Ethical Dilemma: “A weak Dollar Versus A strong Yuan” Case Study
The importance of Yuan relative to the dollar
The relationship between the two currencies is critical in evaluating the balance of trade in both countries (Williams and Donnelly 96). In fact, weak Yuan in relation to the dollar has advantages and disadvantages. The argument being advanced by economic pundits is that China has increased benefits from devalued currency.
However, the benefits accrue to both economies. From the China’s perspective, weaker value of Yuan relative to the dollar encourages foreign direct investment, increases wages and encourages employment (Williams and Donnelly 96). In addition, the devalued currency will also keep the deflationary pressures at an average rate. Further, appreciating Yuan will result in decreased Chinese exports, which by extension depletes the supply of dollars that would have been used for foreign direct investments.
China views the way its currency is pegged against the dollar as a means through which its economic stability is kept (Bernanke 55). The undervalued Yuan also have some benefits to the US or any other country that trade with China. As indicated, the US consumers can access products at lower prices.
Moreover, US producers using Chinese goods as raw materials can access the inputs at low-costs. In addition, the cheaper Yuan in relation to the dollar ensures decreased inflationary pressure in the US economy (Bernanke 56). On the other hand, the undervalued Yuan will be beneficial to the Chinese industries competing with US expensive products. The result is the reduced production in the US, which by extension leads to decreased rate of employment (Bernanke 56).
In terms of balance of trade, the undervalued Yuan will make US products exported to China to be expensive thereby decreasing the volumes of products being sold to China. Conversely, low Yuan reduces the prices of the Chinese products being sold into the US economy thereby encouraging the imports (Eichengreen 101).
As Chinese government continues to peg its currency below the required levels, the balance of trade between the two countries continues to widen. On the other hand, the US economy continues to suffer while Chinese firms and industries benefits from the economic situation.
Moreover, the continuous increasing value of Yuan against the US dollar is a clear indication of the strength of Chinese economy. Most of the speculators and investors in the world major stock exchange markets forecast growth in the Chinese economy enabling the Chinese currency to increase its value (Bernanke 56).
In fact the value of Yuan have enabled China grow its exports and manufacturing that in effect have contributed to the general growth of its economy. Moreover, the weaker Yuan has increased the demand for Chinese goods domestically and internationally. The increased demands have boosted the production with effect on reasonable portion in economic expansion.
Weak Yuan has also encouraged consumer spending on Chinese products both at the domestic and international levels. In other words, weaker Yuan have encouraged the purchasing power of Chinese consumers within the country and abroad. Most of the consumers can access the Chinese products at affordable prices. In fact, low prices have boosted the consumer confidence on the Chinese products.
Moreover, weak Yuan have also encouraged exchanges among the international corporations operating in China (Williams and Donnelly 96). International corporations such as Wal-Mart can easily produce at low-cost and sell their products at cheaper prices into the international market. The low-cost production in China exacerbated by weak Yuan against the dollar is a competitive advantage to firms operating in China (Bernanke 56).
Therefore, it is critical for the currencies to be pegged at a particular value that is deemed beneficial to both economies. Like any other commodity, the demand for currencies decrease or increase depending on the situations in the market (Eichengreen 102). The supply of the currency should also be kept in response to the demand in the market.
In other words, the Chinese central bank will maintain a particular amount of Yuan to keep the balance needed in the market. In most cases, countries trade in their currency to maintain the exchange rate as well as determine the amount to be accumulated through the balance of trade (Eichengreen 103).
Appreciating Yuan against the dollar would result in less accumulation of Chinese foreign reserve in terms of dollars. In effect, the Chinese economy will be destabilized because of decreased trade with US as well as the rest of the world. In essence, the Yuan rates against the dollar must be pegged at an agreeable rate that would foster the abundance of trade existing between the two countries (Eichengreen 101).
The report on China’s currency manipulation
Over the years, China has been accused of manipulating its currency thereby creating imbalances in international trade. Many countries particularly US believed that China’s economic growth has been exacerbated by its ability to manipulate its currency. In this regard, currency manipulation means devaluing the currency in order to give China trade advantage (Bernanke 58). In other words, low values of Yuan create a balance of trade in favor of China.
The effects of devaluing a currency are on both sides. As indicated, low values of Yuan encourage the China’s exports while result in the reduction of the US exports. Industries and firms producing competing products with firms from China are disadvantaged since they produce at higher cost (Bernanke 58).
On the other hand, Chinese firms located in US will produce at low-cost since they utilize cheap imported raw materials from China. Specifically, compared to the US firms, the Chinese firms have greater competitive advantage due to the devaluation of Yuan.
However, US firms operating in China have greater advantages. The firms operating in China are capable of producing at low-cost thereby increasing their competitive advantage (Bernanke 58). US firms like Wal-Mart that would have been rendered un-operational due to high costs of business processes in the US have the opportunity to produce and export due to the cost advantages. Moreover, US citizens are capable of accessing several products at low-cost due to cheap imports from China.
Despite the fact that devaluating Yuan have negative influences on the US economy, appropriate policies should be put in place to enable the balance of trade between the two countries. In fact, Chinese government should be encouraged to peg the value of its currency at an agreeable exchange rate that will not affect both sides of the economy. In addition, the Chinese currency exchange rate has been appreciating over the years thereby enhancing the US balance of trade.
Moreover, appropriate trade and monetary policies that cushions US firms against foreign currency devaluation should be adopted (Bernanke 58). China should also be encouraged to float its currency to allow market forces determine the value. The exchange rate that is determined by the market forces creates a balance in the currency value that encourages firms in both economies to have equal opportunities and cost advantages (Eichengreen 101).
The current situation is that China is appreciating its currency against the world major currencies. The Yuan value against the dollar has been stabilized at a particular rate that has encouraged balanced trade between the two countries. China realized that devaluing its currency against the dollar not only affects its trade with the US but also with other countries round the globe (Bernanke 58).
The actions of Wal-Mart due to appreciating value of Yuan
Appreciating value of Yuan means that the cost of production in China will be increasing. In other words, the Yuan value is decreasing against the dollar. The appreciating value of Yuan enables goods and services produced out of China becomes more competitive (Williams and Donnelly 97).
The meaning is that firms operating in the US and China will have equal competitive advantages. As such, companies such as Wal-Mart should start looking for strategies that would enable low-cost operations. The firm should adopt cost-cutting strategies such as laying-off workers, closing down some of its plants as well as other financial prudent measures.
In addition, the company should also consider relocating to the other developing countries that have low valued currencies compared to that of US dollar. In these countries, the firm can still operate at low-cost and export its products to the US. Moreover, Wal-Mart will still enjoy the cost advantages it used to have in China. Besides, Wal-Mart can change its operational and production strategies.
The company can increase its share in the market through absorption of the competing firms. At the same time, the company can scale down its production to reduce the increasing costs resulting from the appreciating Yuan. The company should also consider relocating back to the US since the cost of production in China and in the US would be similar.
Whether exporters from Argentina, Indonesia, Malaysia, or South Korea should accept payment in Yuan
Accepting payment in Yuan will depend on its value against the dollar or its value against the country’s currency. Most of the countries’ currencies are pegged on the value of dollars. Moreover, countries will accept payment in currency that can be exchanged into dollar at a stable exchange rate (Williams and Donnelly 97).
The values of Yuan against these countries’ currencies are higher enabling exporters to have greater gains. In addition, the value of Yuan against the dollar has also been stabilized enabling other countries to gauge their currency against Yuan. In other words, the exporters from these countries cannot suffer huge losses arising from shocks within the foreign exchanges. Since these countries’ currencies are undervalued, accepting Yuan will boost their exports and by extension production of most firms.
As indicated, the values of these countries’ currencies pegged on Yuan are low. The existing balance of trade will be in favor of these countries enabling exporters to earn more from the commercial dealings with China.
Even though China’s main concern is to transform Yuan into leading world currency and increase its foreign reserves, exports from these countries will be increased due to augmented gains from such exchanges. In addition, the overvalued Yuan will be beneficial to these countries industries competing with China’s expensive products (Williams and Donnelly 97).
Bernanke, Ben. “International capital flows and the returns to safe assets in the United States 2003-2007.” Financial Stability Review, 15.3 (2011): 54-63. Print.
Eichengreen, Barry. “Global Imbalances: In a Saving and Investment Perspective.” World Economic Outlook, 16.1 (2005): 100-104. Print.
Williams, Brock and M. Donnelly. “U.S. International Trade: Trends and Forecasts.” Bureau of Economic Analysis, 34.6 (2010): 91-99. Print.
Ethical Dilemma- The Fate of Opel Case Study
Costs and Benefits of FDI on the Host County
Many developing countries embarked on a serious campaign to promote foreign direct investment in their countries following the economic surge of 1990s. Economic policy makers established that their economies could not perform any better without foreign investors in their countries.
However, some were of the contrary view since they believed that foreign direct investment is a source of conflicts in the economy. Foreign direct investment has a number of benefits to the economy of the host countries. For instance, it contributes in strengthening integration among states, which is a prerequisite of development.
Once an economy is interested into the global economy, it would be able to enjoy expansive markets for various commodities (Strange 21). Foreign direct investment has the major role of boosting and engendering trade flows, even though this depends on several factors. In this case, the host country is expected to strengthen global links regarding certain enterprises to ensure smooth distribution of goods and services, efficient sales, and marketing of products.
Host countries would always benefit from increased exports, which would in fact fulfill their short and medium-term objectives. For the case provided, foreign direct investment plays a critical role in boosting exports in Germany. Germany has benefited from inward investment for long meaning that foreign direct investment helps the host country in that seem to have financial constraints, even though it might be having enormous natural resources.
By the time GM entered in to partnership with Opel, the economy of Germany was undergoing transition. Since the partnership was founded in late 19th century, Germany has been experiencing improved imports and exports, even though this was greatly hampered by the Second World War when the Nazi regime took over the management of the production facility.
Foreign direct investment has the capability of transferring technology from one country to the other, which is one of its main benefits. Multinational Corporations are often depended upon in offering new ways of doing things in the market.
Technology circulates in four different ways, one of them being vertical transfer whereby suppliers of goods and services, as well as the buyers are introduced to new ways of interacting with foreign companies using new technologies. Local companies can as well access technology horizontally as they engage in competition or partnership with multinational corporations, such as General Motors. Opel was able to outmuscle its competitors domestically since it had strong technology.
Competitors were quick to assert themselves technologically in order to match the capability of Opel. This means that multinational corporations have a role to play in introducing and circulating new technologies in the host countries. In case the host countries do not have adequate labor necessary in the accomplishment of organizational goals, the multinational companies would easily bring the personal from the home country that are highly experienced and skilled.
Highly trained personnel are important in an economy since they have the ability of conducting research to establish the major challenges facing the sector or the industry. Expatriates offer technical assistance and training services to government officials and other stakeholders in a particular sector or industry. This encourages economic growth and stability in the host country.
Foreign direct investment has several benefits, but it has a number of disadvantages, which are extremely costly to the host country. Research shows that foreign direct investment is only helpful in economies that have string economic policies. Some multinational corporations are accused of moving outdated equipments that are believed to be environmentally harmful to the host countries (Wolf 113).
The host country will have to deal with the issue of greenhouse emission, even though the concerned company might be reluctant to support air-cleaning program. In developing countries, foreign direct investment interferes with the working standards, as well as the rights of employees. Some multinational companies are known to interfere with rights of workers in the sense that they violate the internationally established labor laws by bribing leaders of the host countries.
Decisions of Foreign Companies
Foreign companies will never come up with policies aiming at uplifting the living standards of the poor in the developing countries. Moreover, they cannot engage in meaningful discussions to boost the economies of the poor countries or the host countries. They are often regarded as the agents of their countries and are therefore expected to remit the returns to their home countries.
Multinational corporations play a zero-sum game meaning that the loss of local companies is their benefit. In other words, they will never engage in discussions aiming at a win-win situation. The issue of sustainability is of great concern to many countries given the fact that greenhouse emission is on the rise and global warming is inevitable.
Based on this, multinational corporations will simply support programs aiming at giving them an advantage in the market as opposed to supporting the growth of the economy. This implies that foreign investors are profit oriented and they would tend to oppose any move aiming at reducing their profitability. Even though Germany was considered an enemy during the Second World War, the US based multinational corporation, General Motors, was unwilling to cut its relations with Opel.
From a realist perspective, the international system or the global market exists according to the Hobbestian state of nature meaning that there is no Leviathan or the government to oversee the behavior of various state and non-state actors, including multinational corporations, such as General Motors. This means that there is a vacuum that is often filled by the powerful actors, such as General Motors. The powerful actors cannot make decisions that benefit the weak actors because they fear competition.
Decision of Magna Plan
A Spanish official should do everything possible to convince Magna to stay in the country since multinational corporations offer competition that is often critical as far as economic growth is concerned. Due to the presence of multinational corporations, countries are forced to liberalize trade meaning that they open up their economies through allowing free movement of goods and people.
Local firms are forced to improve their marketing strategies, production processes, and distribution methods to match those of the market leader. This results to efficiency and economic growth for a host country (Steger 78). The Spanish officials should therefore embark on a mission that would ensure Magna remains in the country. In fact, the taxes paid to the central government more as compared to the ones paid by local companies.
Moreover, Spain should advocate for the strengthening of Magna in the country since it would encourage enterprise development. The corporate governance and managerial styles would be strengthened in case Magna continues operating in the country. Privately owned organizations are known for their efficiency. If Magna remains in Spain, it would offer a challenge to the Spanish government to privatize some of the publicly owned firms, which are often associated with huge loses.
For the German officials, they should insist on strengthening Magna in Spain since the company does not face serious competition as opposed to the home country. The taxes paid in Spain are minimal as compared to the high taxation rates in Germany. Moreover, the resources utilized in the manufacturing process are readily available in Spain as opposed to Germany.
If the company relocates to the home country, it would have to incur extra costs of transporting raw materials, as well as finished products. Finally, Spain has adequate labor that is relatively cheap when compared to that of Germany. The company will always be operating at a low cost while in Spain.
The Decision of the General Motors Board
General Motors should not attempt selling the subsidiary company, Opel, to competitors since it would lose a lot in the global market. It should hold on until the right time comes because the present status is not good for disposing the subsidiary. If General Motors sells Opel to Magna or any other German-owned firm, it will have given the competitor an advantage to outmuscle it globally.
I will insist on bailing Opel rather than choosing to dispose it to a competitor. The European market is stable as compared to other markets in the world hence General Motors should not quit. If the company bows down to the pressure of the German populace, other citizens in different countries will follow suit meaning that the company will have lost its prestigious position as the world leading car dealer.
Steger, Manfred. Globalism: Market Ideology Meets Terrorism. Lanham: Rowman & Littlefield, 2005. Print.
Strange, Susan. Power Diffused State and Non-State Authority in the World Economy. New York: Cambridge University Press, 1996. Print.
Wolf, Martin. Why Globalization Works. New Haven: Yale University Press, 2004. Print.