For Case Analysis
1. The section on “Managerial Ethics” highlights three sets of relationships involved in the exercise of managerial ethics – the relationships of the organization to its employees, of its employees to the firm, and of the firm to other economic agents. Explain how each of these relationships was a factor in the ethical failings of the Minerals Management Service. In your opinion, which of the three was the biggest factor? Explain your answer.
The manner in which the employees are treated by the organization is an essential factor in determining the effectiveness of managerial ethics. In the case of Minerals Management Service, it is observed that despite the organization being aware of the various discrepancies such as accepting royalty in kind, selling oil and gas in open market, allowing buyers to revise the bids to the contract, consuming alcohol, cocaine and offering sexual relationship with representatives, the management failed to fire and punish those employees (Griffin 2013, p.p. 114). Instead of firing and banning, the employees were transferred out of the program but remained on the government payroll (Savage, 2008).The employees of the firm failed to differentiate between what potentially benefits the individual to the possible detriment of the organization. (Griffin, 2013. p. p. 91). Despite there being regulations which forbid the employees from carrying out any sort of unethical acts, the employees of MMS did not comply by those policies. Finally the biggest factor which triggered the ethical failings of the Minerals Management Service is the relationship of the firm with the economic agents such as customers, competitors, stockholders, suppliers, dealers, and unions (Griffin, 2013. P.p. 93). The employees of the firm deviated from being public servants to individuals with no ethics. They did not comply with any of the regulations, they mixed professional and personal relationships and satisfied their personal interest at the cost of government and
The manner in which the employees are treated by the organization is an essential factor in determining the effectiveness of managerial ethics. In the case of Minerals Management Service, it is observed that despite the organization being aware of the various discrepancies such as accepting royalty in kind, selling oil and gas in open market, allowing buyers to revise the bids to the contract, consuming alcohol, cocaine and offering sexual relationship with representatives, the management failed to fire and punish those employees (Griffin 2013, p.p. 114). Instead of firing and banning, the employees were transferred out of the program but remained on the government payroll (Savage, 2008).The employees of the firm failed to differentiate between what potentially benefits the individual to the possible detriment of the organization. (Griffin, 2013. p. p. 91). Despite there being regulations which forbid the employees from carrying out any sort of unethical acts, the employees of MMS did not comply by those policies. Finally the biggest factor which triggered the ethical failings of the Minerals Management Service is the relationship of the firm with the economic agents such as customers, competitors, stockholders, suppliers, dealers, and unions (Griffin, 2013. P.p. 93). The employees of the firm deviated from being public servants to individuals with no ethics. They did not comply with any of the regulations, they mixed professional and personal relationships and satisfied their personal interest at the cost of government and
Bibliography: Garber, K. (2010). Interior 's Problem Child. U.S. News Digital Weekly, 2(20), 6. Savage, C. (2008). Sex, Drug Use and Graft Cited in Interior Department. New York Times. Retrieved from http://www.nytimes.com/2008/09/11/washington/11royalty.html?pagewanted=all&_r=0). Griffin, R. (2013). Management (11th ed.). Mason, OH: South-Western Cengage Learning. ISBN-10: 111196971X ISBN-13: 9781111969714 Hogue, B Savage, C. (2008). Sex, Drug Use and Graft Cited in Interior Department. New York Times. Retrieved from http://www.nytimes.com/2008/09/11/washington/11royalty.html?pagewanted=all&_r=0).