Business Ethics: Case Study 1
Business Law – BUSI561
In this brief response to the business ethics case study, I will highlight findings that question the integrity of Next Step Herbal Health Company according to Ramona Alexander’s research on the company and her observations of the CEO’s engagement and the recruiter’s response to her raised concerns. There were three major issues I found that were questionable in making a final decision of accepting any offers from Next Step. I will elaborate on the following points:
Leadership integrity in both the recruiter and CEO.
Biblical perspective on integrity
Questionable business practices, such as forced purchase tie-in agreements with its distributors.
In order to determine the integrity of the recruiter and the CEO, we first need to understand what integrity is. The term integrity is used in the business literature to describe different leadership traits. David Bauman highlights an example of integrity's multifaceted nature provided by Bill George who is one of the most influential practitioner/writers on leadership today (Bauman, 2013). In his book Authentic Leadership George writes,
“While the development of fundamental values is crucial, integrity is the one value that is required in every authentic leader. Integrity is not just the absence of lying, but telling the whole truth, as painful as it may be. If you don't exercise complete integrity in your interactions, no one will trust you” (Bauman, 2013 pg13). The recruiter gave Ramona vague responses regarding questionable business practices as well as false marketing by stating that Next Step sent researchers around the world in search of new organic sources. In addition the CEO’s lack of integrity is shown when he insulted Americans in his speech, this action showed no respect or concern for the community or consumers. Looking at integrity from a
References: 1. Bauman, David C., Leadership and the three faces of integrity, The Leadership Quarterly, Volume 24, Issue 3, June 2013, Pages 414-426, ISSN 1048-9843, http://dx.doi.org/10.1016/j.leaqua.2013.01.005. 2. Boa, Kenneth, (2005), Integrity , From the Series: Leadership Qualities. Retrieved from https://bible.org/seriespage/6-integrity 3. Brammer, S., Millington, A., & Rayton, B. (2007), The contribution of corporate social responsibility to organizational commitment. International Journal of Human Resource Management, 18(10): 1701-1719. 4. Kubasek, N. K., Brennan, B. A., Browne, M. N. (2015). The Legal Environment of Business – A Critical Thinking Approach, Pages 688-689 5. Reave, Laura, Spiritual values and practices related to leadership effectiveness, The Leadership Quarterly, Volume 16, Issue 5, October 2005, Pages 655-687, ISSN 1048-9843, http://dx.doi.org/10.1016/j.leaqua.2005.07.003. 6. Teach, R. D., Christensen, S. L., & Schwartz, R. G. (2005). Teaching business ethics: Integrity. Simulation and Gaming, 36(3), Pages 383-387. http://dx.doi.org/10.1177/1046878105279192 7. Turban, D. B., Greeing, D. W., (1997), The Academy of Management Journal : Corporate Social Performance and Organizational Attractiveness to Prospective Employees, Vol. 40, No. 3 (Jun., 1997) , pp. 658-672 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/257057