BUSINESS ETHICS: DETAILED ANALYSIS

 Mrs. Watkins is a wealthy, elderly widow who is supported by a long time friend, Kim. Kim provides a wide range of voluntary assistance which includes the management of Mrs. Watkins’s bank account. Mrs. Watkins has made it clear that when she passes away she would like to leave her money to Help-A-Child Charity.

Kim has a disabled daughter who requires care at home each day. Kim’s husband, who financially supports both, has recently lost his job and ability to provide for his family. He has had difficulty finding employment as the economy is slowing, and it will take several months until he finds a comparable position.

In the mean time Kim’s family is facing overdue electricity and water bills. Kim is contemplating “borrowing” $250 from Mrs. Watkins’s bank account without permission, to cover their bills, in the intension that the money will be repaid when Kim’s husband finds employment.

Issue

An ethical issue exists when there no clear right or wrong decision and when a decision must be made and the decision-maker’s values conflict with an affected party’s values.1

In this case the ethical dilemma is: should Kim take $250 from Mrs. Watkins’s bank account without permission to cover overdue bills?

Analysis

Utilitarianism states that when an ethical dilemma exists the ethical choice is the choice which offers the greatest good for the greatest number of people.2 In this case if Kim’s action results in the greatest amount of good for the greatest amount of stakeholders Kim’s proposed action is the ethical choice. The two alternatives to be examined are Kim’s possible choice to take the money and Kim’s alternative choice not to take the money as this is the major ethical issues.

Stakeholders

The stakeholders which could be possibly affected by Kim’s action are Kim and Kim’s family, Mrs. Watkins, the Help-A-Child Charity, and the Help-A-Child Charity’s beneficiaries.

Consequences to Stakeholders

Kim and Kim’s family would be positively affected by Kim’s taking of $250 as the money would prevent the loss of power and water to Kim’s home. The loss of power and water could possibly be traumatizing to Kim’s daughter or potentially life threatening if medical complication arise stemming from the disability.

Possible negative consequences could arise to Kim’s family if Kim’s taking of the money was discovered by Mrs. Watkins and if Mrs. Watkins did not forgive Kim’s action and took legal action against Kim. This could cause financial stress on Kim’s family resulting from legal proceedings.

Mrs. Watkins will lose the ability to spend the $250 while the money is taken and Kim’s action could threaten their relationship.

The Help-A-Child Charity and their beneficiaries could be negatively impacted as a result of Kim’s actions if the money was not returned or if Kim’s transgression set the president for future taking of funds in an amount which could not be repaid.

Prioritizes Consequences

The most immediate and probable consequence stemming from Kim’s action will be the prevention of the loss of power and water. The largest consequence in term of magnitude is the possible harm that lack of power and water can have on Kim’s daughter.

The negative consequences are premised upon events which have less likely probabilities. For legal ramifications to develop Mrs. Watkins must discover the theft, which is unlikely give Mrs. Watkins situation, and Mrs. Watkins must be angry enough to press charges, which is unlikely given Kim’s and Mrs. Watkins past relationship. The loss of Mrs. Watkins ability to spend $250 is minor given the amount of money she has in her possession.

The facts of the case do not give a reason why Kim would not repay the money once her husband finds employment. Most likely Kim’s husband will be able to find a job and repay the money with Mrs. Watkins never finding out about Kim’s action. It is unlikely for Help-A-Child Charity and their beneficiaries to be impacted as the money will be repaid before Mrs. Watkins’s death.

The most important factor is the welfare of Kim’s disabled daughter. The benefit gained by insuring the water and power remains flowing outweighs the possible negative consequences of Kim’s actions.

Recommendation/conclusion

Using utilitarianism as the means to resolve the ethical dilemma, Kim should take $250 from Mrs. Watkins’s bank account without permission to cover overdue bills and repay the amount as soon as possible.

End Notes

1Business Ethics: A Real World Approach, Andrew Ghillyer, McGraw/Hill/Irvin, 2008, page 9.

2Business Ethics: A Real World Approach, Andrew Ghillyer, McGraw/Hill/Irvin, 2008, page 8.