Curtin University - Management 100 - Three Ethic Models

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Name:Liew, Sue-Ann
Unit Code:Management 100 - 10848
Word Count:1367

The article is about Nike workers who were being underpaid as a result of the military being paid by the company to intimidate them. (Roberts 2013) The Indonesian government increased workers’ wages following a walk out of job protest against low pay with ever increasing living costs. (Roberts 2013) People affiliated with the military forced Nike workers to sign a document enforcing the restriction on increased wages. (Roberts 2013) Employees should be treated fairly and their rights should be upheld. This essay will explain the three ethic models, which are the utilitarian model, moral rights model and justice model (Waddell et al. 2007, 166), the application of these ethic models pertaining to the case study, and which ethic model would be best referred to in deciding the course of action to take to solve the problem that has arisen due to the circumstances that happened due to the employers forcing minimum wage exemption of their employees. (Roberts 2013) Waddell et al. (2007, 164) suggests that ethics as how people or groups perceive decisions as right or wrong differently. An ethical decision made according to the utilitarian model is defined by the most benefit for the most number of individuals. (Waddell et al. 2007, 166) Jardins and McCall (1985, 368) suggest that to further understand the meaning of employee rights, one would look at what both the managers and employees would goods both parties are aiming for in an employment agreement. Both parties will have differing aims and strategies to create changes or benefits from and for the company, resulting in a conflict of interest. (Gill 2003, 308) For instance, managers would set a target to maximize the profits of the company and “maintain the firm’s long-term growth and stability (Jardins and McCall 1985, 368); while employees may aim to gain benefits and have a comfortable life, which is obtained by receiving at least minimum pay, or even “higher wages”. (Jardins and McCall 1985, 368) Managers have the responsibility to analyze the situation carefully, and make a decision that would benefits the highest number of stakeholders, i.e. the employees. (Waddell et. Al 2007, 166) If wage rates were to be increased, the company would make lower profits. (Jardins and McCall 1985, 368) Wage increments would add to the production costs, so customers would not want to purchase the products if they become too expensive, therefore decreasing profits over time. Granting benefits could potentially “threaten long-term stability” in the long run. (Jardins and McCall 1985, 368) Suppose the manager decides to reject the employees’ requests and demand. In which case, the company’s profits and stability will be sustained, customers are kept happy with low product costs, but the employees will barely survive on low wages, even more so if they are receiving less than minimum wage. A ethical decision made according to the moral rights model is a decision made on a basis that it preserves and conserves the basic human rights and privileges of the individuals as best as possible. (Waddell et al. 2007, 166) People are morally responsible to ensure that each other are able to have a life that is minimally good. (Jeurissen 2007, 3) Stakeholders make up the organization, so it is important to know and understand their interests in the company. (Jeurissen 2007, 3) Takemura (2009, 27) stated that the United States’ delegate support that people have to respect the rights of objectors, so ensuring minimum wage is the highest priority. Dealing under the Fair Trade standards means that companies must treat its stakeholders in a fair and just manner, with employers granting its employees their workers’ rights, such as minimum wages, good safety standards, and proper housing. (Fair Trade International 2013) For the protection of their rights, every worker has the right to affiliation with trade unions. (Kallstrom and Eide...
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