According to the case study discussed herein, public relations experts report that there are basically two standard phrases used when high-ranking executives leave a company. Those phrases consist of “spending more time with family” and/or “pursuing other interests.” (Jennings, 2012). However, the problem such idioms raise is whether the statements are an ethical way of temporarily saving face for those executives terminating their employment or the preservation of a company’s reputation in financial hardship.
This case deals with virtue of honesty. When an employee leaves an organization, regardless of his or her position, the reason for the departure must be stated. Human ...view middle of the document...
A company’s executive branch has a reputation to uphold. The better a businessperson’s reputation for integrity, honest and decency, the better chances of victory in the business world. By misleading or misinforming others of their true intent, the employees in this case, have decimated the reputation of the companies they represented.
1. Is it dishonest to use the family/other interests reason when it’s not true?
In my opinion, dishonesty equates to falsification. It is unethical and illegal to falsify information regarding your employment. Business ethics is an applied or professional ethical examination of principles and morality which arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. (Business Ethics, n.d.).
Is there a securities law violation?
In this case study, Daniel Burnham, former CEO Chairman of Raytheon, was sued by the Securities Exchange Commission (SEC) alleging accounting improprieties, which was a direct violation of the securities laws.
4. Give some rationalizations that companies and individuals could offer for the explanations.
Although representatives of organizations may understand ethics are important, sometimes individuals are reluctant to raise ethical questions when dealing with executives or upper-management, so “warm language” is strategically implemented to avoid facing such issues. By labeling the employee as “leaving to spend time with family” the statement denotes vagueness which cannot be construed as a falsehood.
5. Does the “spending more time with family” explanation help to preserve dignity? Does it help prevent a drop in the company’s stock price?
The goal of any termination, whether voluntary or involuntary, should be to preserve the employee’s dignity, while meeting all...