Business Law BUSI561 Case Study 1

Topics: Leadership, Business ethics, Management Pages: 7 (1652 words) Published: July 19, 2015
Business Ethics: Discussion Board 1

Business Ethics: Case Study 1
Liberty University
Business Law – BUSI561
Betzaida Aponte
Abstract
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. Leadership Integrity
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 biblical perspective we see many examples on how a leader should have integrity in order to be respected and honored. Spiritual and Biblical Perspective on Integrity and Honesty

Demonstrating respect for others is one of the most important spiritual practices in an effective leader. Many leadership theories emphasize the need for the leader to have a vision for the organization and then to communicate that vision to followers (Reaves 2005). In the case of Next Step CEO we see how he encourages individuals to act in ways contradictory to their values, Per Reaves the effects of separating people’s spiritual values from their work, results in the divided soul of corporate America (Reaves 2005). Spirituality expresses itself not so much in words or preaching, but in the embodiment of spiritual values such as integrity and in the demonstration of spiritual behavior such as expressing caring and concern (Reaves 2005). Looking at the situation from both a spiritual and an ethical perspective, I would advise Ramona to really analyze if she would feel happy working for a company where she knows there is questionable integrity in the way business is done and the way people are treated. Ramona’s observation includes the recruiter showing a lack of integrity by acknowledging that the company was not honest in the research of their products. In addition, Ramona’s observations of the CEOs engagement with the attendees showed lack of respect for the community. The CEO stated that the company’s product was to offer salvation to the fat, lazy and lethargic Americans. This statement demonstrates that the CEO does not care about the people, this is also evident in the CEO’s reputation where he is known to have a pattern of starting new businesses, building them up and then selling them at a huge profit before moving on to something else. According to a survey done by James Kouzes and Barry Posner regarding characteristics desired on leaders, honesty or...

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
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