January 10th, 2018
Potential conflicts of interest between the internal and external stakeholders
The different needs of internal and external stakeholders present various avenues for conflicts between the two sides. Firstly, whereas shareholders demand higher profitability for the entity, to realize their return on investment, clients (patients) demand quality health care for the money they pay to the entity. In this respect, where the shareholders pursue such profitability irrespective of the expense, there could arise a conflict with patients’ need for quality care.
Secondly, potential conflicts exist between the needs of physicians and nurses engaged in imprudent practices and the interests of the professional body. Whereas these employees would like the status to remain as it is to avoid termination, the professional bodies would need Dr. Do Right to ensure that the practitioners remain true to their oaths, thus protecting the profession from disrepute. Thirdly, Dr. Do Right’s supervising bodies demand continued favorable reviews of the entity at all cost, as evident from their hesitance to investigate, which could be in conflict with interest of collaborating bodies that demand that the entity follows ethical practices in its business.
Has Dr. Do Right fulfilled his ethical duty by reporting the illegal procedures?
Dr. Do Right’s reporting of the illegal procedure is the correct ethical decision in the situation he faces. Such an action is not only supported by various ethical theories, as discussed subsequently, but also highlights the need for entities to adhere to ethical business practices even when facing challenging business conditions (Heineman, 2007). Maintaining ethical practices would imply acting in integrity and professionalism, which researchers such as Brown and Trevino (2006) have identified to be core characteristics associated with ethical leadership. Failure to disclose the malpractices would mean that Dr. Do Right condones such illegal practices, an implication that would create an organizational culture where illegal practices prevail. Go to part 3 here.