Case Study on Corporate Governance and Ethical Responsibility

Ethical business practices have become a core driver of sustainable business performance, even with increasing competitiveness. Entities that fail to maintain ethical practices are at increasing risk of failure due to irreparable damage to their reputation, following unearthing of unethical practices (Heineman, 2007). This paper considers the ethical situation that Dr. Do Right faces, highlights the stakeholders in the situation, notes the implications of Do Right’s decision on such stakeholders and discusses the perspectives that various ethical theories advance with respect to Do Right’s circumstances.

Synopsis of the Situation

The ethical situation that Do Right faces highlights how competing interests of various stakeholders could result into imprudent practices. Dr. Do Right work entails managing employees in a medical facility, Universal Human Care Hospital, which serves over 20,000 patients. Although the entity’s financial performance has been exemplary, even earning Dr. Do Right excellence awards, such performance has been at the background of physicians and nurses performing illegal procedures that lead to patients’ death. Although he has reported the case to his supervising bodies, the results of the investigations that the superiors promised are yet to be released. Accordingly, Dr. Do Right faces an ethical dilemma on whether to report such practices to other authorities, thus avoid further patient deaths, or conceal such practices, hence ensure the entity  continues its positive performance reviews.

Internal and External Stakeholders that Dr. Do Right might have to deal with

Dr. Do Right’s position in the entity and the situation he faces highlight various stakeholders that he has to deal with. Within the organization, Dr. Do Right has to deal with employees (physicians and nurses, some of who are involved in illegal practices), investors (who desire a positive financial performance from the entity) and his superiors, who desire favorable performance reviews for the entity. For the physicians and nurses, Dr. Do Right’s whistleblowing could lead to their careers’ termination. For the investors, Dr. Do Right’s disclosure might scare clients (patients) away thus reducing the profitability of the entity and hence the shareholders’ return on their investment.

Externally, Dr. Do Right has obligations to stakeholders such as patients, organizations that the entity does business with, and professional bodies to which he is affiliated. For patients, Dr. Do Right needs, for instance, to ensure that they receive quality care for which they have paid. For the professional bodies, Dr. Do Right needs to ensure that he conducts his practice in a manner that does not bring the profession into disrepute. For the organizations that collaborate with the hospital, Dr. Do Right needs to ensure that the reputation of the entity is impeccable to avoid such organizations losing favor with their other clients who might feel that the organizations promoted the hospital’s imprudent practices.   go to part 2 here.

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