Leadership and Organizational Studies †Free Samples to Students

Question: Disuss about the Leadership and Organizational Studies. Answer: Introduction: In the past three years, I have been working as a part time accountant professional at the Melyn Gas, a US based gas supplier. Melyn Gas is one of the leading gas suppliers in the US. The companys growth and expansion is attributed to the acquisition of similar companies in the country. The companys strategy of acquisition resulted into one of the major ethical dilemmas that I have faced in my career as a practicing accountant. Four months ago, the company acquired Ki Gas Suppliers, one of the competitors of Melyn Gas in the American gas industry. While recording the transaction in the financial books, the senior accountant asked me to reduce the book value of Ki Gas Suppliers, and this meant that the book value of an asset that was acquired at $2.3 billion was reduced to $1.2 billion. Although I objected to the practice, this was a common scenario in the company because it helped the company to keep a false financial position to the investors, who received a false impression that th e company was making profits despite the huge losses that the company continuously suffered. The company also engages in such practices to attract more investors to the company. According to Kohlbergs Stage 3 of Moral Development, it is expected that a subordinate would follow the instructions of his seniors to conform to social order; however, I refused to reduce the book value of Ki Gas Supplier despite the stern directive by the senior accountant left me in a major dilemma. As a professional accounting practitioner, I am guided by the principles of International Ethics Standards Board for Accountants (IESBA), and this does not allow me to engage in keeping false and inaccurate financial records (Hayes, 2011). Besides, reducing the book value of the newly acquired asset would lead to the losses in the company that would lead to its collapse and the loss of billions of investors money. On the other hand, the failure to comply with the demands of my senior accountant meant that I would lose the positive reputation that I had earned in my department. Holding into my position also had further consequences such loss the loss of my job, a negative appraisal from my boss, or a lack of promotion. Equally, in the event that I informed the management of the practice could have an unexpected outcome as the fingers of blame could possible turn against me. Why it is an ethical dilemma As a subordinate accounting practitioner at Melyn Gas, this was a major ethical dilemma for me because my action to compliance or failure to comply with my seniors directives had significant consequences. Therefore, it was expected that I should evaluate the situation and make the most ethical decision. This can be understood using Jones moral intensity, which states that the extent of the consequences is determined by the impacts of the decision has on the victims (Fatoki Marembo, 2012). Based on the factors present in a dilemma above, one of the consequences of my compliance to the directive is contributing to the inaccuracies in the financial records of the company. This is a serious accounting offense because it violates IESBAs first accounting principle of objectivity (Rose, 2016). In the event that I reduce the book value of the newly acquired asset, the company will paint a false impression to the public and stakeholders that it is making profits while in reality, there are rampant losses in the company. The deception would finally lead to bankruptcy and the eventual collapse of Melyn Gas. Conversely, the chances of retaining my position within the company would remain very slim if I refused to take part in this accounting fraud. Refusing to be an accomplice in the fraud meant that my senior would give me poor appraisal result. In addition, this would be a major blow to my positive performance in the company and could lead to the loss of my job in the company. The scenario above is also an ethical dilemma because the compliance with the directives from the senior accountant constitutes an immoral act. Reducing the value of Ki Gas from the actual buying price to a lower value is an immoral act of theft and corruption that would be considered by the employees, the investors and by the members of the public to lack moral support. This can be understood through the social consensus theory, which refers to the societal pint of view that an act an action is considered unethical if it is viewed as immoral by the larger society (Slote, 2013). The accounting fraternity requires that all accountants should maintain professionalism in practice. This was also an ethical dilemma because my compliance would cause harm to more people in the society while benefiting only a few. When I reduce the book value of the company, the false financial position of the company will attract an increased number of investors who want to generate profits from the companys outstanding performance in the markets (Fu, 2015). However, the eventual collapse of the company would lead to the loss of tens of billions of investors money. On this basis, many investors will suffer serious financial loss. Besides, the collapse of the company will mean a shortage in the supply of gas in the US, exposing members of the public from accessing this commodity. To minimize harm, it is necessary that I decline to comply. This can be understood through the utilitarian theory, which states that an action should be aimed at maximizing the good of the majority while reducing pain. This was an ethical dilemma for me because my decision to reject taking part in the act would affect negatively the proximity and my relationship with the senior manager at the company. According to Renouard (2011), proximity refers to the relationship between the individual in the position of making a decision and the individuals who will be affected by the consequences. As a subordinate in the company, there was a proximity between me and the senior accountant; however, there is a distant proximity between myself as the employee, the senior accountant, and the external stakeholders. Proposed ethical solutions The first solution to the above ethical dilemma is to adhere to the principles of accounting as stipulated by IESBA. According to Hayes (2011), there are five major principles of accounting that can help be used to offer solutions during ethical dilemmas in the accounting industry. Firstly, an accountant should observe the principle of integrity and objectivity, and this will help him to act in an honest and a straight forward manner. In this regard, an accountant in the above ethical dilemma will not reduce the assets book value. Secondly, an accountant can overcome this dilemma by observing the principle of professional care and due diligence. This principle requires that an accountant professional should offer competent service to the clients, and hence, this will not allow one to reduce the book value of an asset. With regards to the principles of accounting, the above ethical dilemma can also be overcome by the observation of professional behavior, which states that all practici ng accountant professional should observe all account laws and regulations that and avoid engaging in any action that violates the profession of accounting (Fenning, Appiah, Frempong, 2015). Another proposed solution to this ethical dilemma is the avoidance of conflicts of interest. Conflict of interest refers to a situation where one decides to engage in an activity to derive personal benefits. In the given case scenario, the senior accountant and other top managers at Melyn Gas engage in the practice of reducing the book value of assets that they have acquired in order to get the opportunity to steal from the profits generated by the firm at the cost of other stakeholders of the company. In this regard, to overcome such scenarios, a practicing professional accountant should avoid situations of conflicts of interest (Yukl, Mahsud, Hassan, Prussia, 2013). This is in accordance with the utilitarian theory which argues that the decisions and human actions should aim at reducing pain while maximizing pleasure and for the benefit of the majority (Velasquez, 2010). As a utilitarian, it is better placed for one to make a decision that will benefit the majority. Therefore, I w ill not follow the directives of my senior accountant to and act in favour of the larger population which in this case are the many investors who have injected their money in the company and the millions of consumers who rely on Melyn Gas for energy supply. This ethical dilemma can also be solved by fostering for good leadership both at the top management and across all the departments at Melyn Gas. The fact that the directive to reduce the book value of an acquired asset is a clear indication of the lack of integrity within the leadership of a company. It is a serious act of corruption and poor leadership that needs to be addressed (O'Rourke, 2010). In this case scenario, one should stand for the good leadership, one that is honest and straightforward, and therefore, as an accountant one should report the matter to the relevant authorities for appropriate action to be taken. Portfolio of Evidence The give case studies reveal important ideas in the ethical leadership debate. Firstly, in the case study of Deshi Chen, it is clear that Deshi is in agreement with the motion of the ethical debate despite the fact that he does not subscribe to the school of business ethics. Deshi plays the role of a shareholder whose major interest is to generate profits and as one who focuses on self-interest and less concerned with engaging in corporate social responsibilities. He is guided by the universal principles, and therefore, he believes that one can go against the established rules and regulations for his gains. As a result, Deshi goes ahead to introduce the idea of eliminating the module of business ethics as a course that should be studied. It is because of this that Deshi is described by the members of his debate team to be at the sixth stage of Kohlbergs Moral Development (Ferrell, Fraedrich, Ferrell, 2013). On the other hand, the team that was in opposition to the debate motion argu ed against Deshis idea that Business Ethics Module should be scrapped off from their program. From my perspective, Deshi is a straightforward individual who lets people know what he thinks and what he wants. This illustrates that he possess high self-esteem and self-believe, which are vital for success in the business industry. In the second case study, Edward Jan is seen to be in opposition of the ethical leadership debate. In this case study, the author places Edward Jan as belonging to the sixth stage of Kohlbergs Moral Development because of her ambition to introduce changes in the Guatemala Business Schools system of studies. Jan proposes for the introduction of a system of studies that focus on the individual achievement of profitability to one that focuses on the management of peoples skills (Ahmad, Ansari, Aafaqi, 2005). The position held by Edward Jan was described by the members of her debate to be in accordance with the Kantian Categorical Imperative because she prioritized the dignity and wellness of human beings. On the other hand, the team that was opposing the ethical leadership debate viewed Edward Jan as a strategy as an egoistic approach to handling social issues (Evans, Levitt, Henning, 2012). This is because the stressed that he placed on his way of doing things. I believe that the man agement of the skills of people is the most appropriate way to improve the living conditions of the unfortunate members of the society. As a strong belief in utilitarianism, I believe in engaging in acts that minimize pain and increase pleasure. This is in line with Edward Jans idea of collaborating with her employees at Clean Solutions INC. to help the less fortunate in the society. From Mei Hua case study, it is clear that Mei is in opposition to the ethical leadership motion. Mei can best be categorized to belong to the fourth stage of Kohlbergs Moral Development (Remley Herlihy, 2010). This is because she observes certain rules of taxation while evading others, for example, she evades company taxes to ensure higher profits for the companys stakeholders (Klikauer, 2014). The opposers of the motion view Mei as egocentric for avoiding taxes. I believe that Meis position is wrong, for example, based on the social consensus theory, the practice of avoiding tax is consider as immoral by the majority member of the society (Lambie, Hagedorn, Ieva, 2010). In the final case study, Mike Gustavsson is opposing the ethical leadership debate. His team categorizes him into the sixth stage of Kohlbergs Moral Development because he has his unique ethical principles (Verges, 2010). Conversely, members of the opposing team consider him an inactive stakeholder and then changed to a dangerous stakeholder. From my perspective, Mikes actions are guided by Maxim 2 because he was concerned with the management of people and career development. The Seminar Case The case study of Holiday, there are four major characters namely, Marcus, Swan Lee, Borries, and Borries manager. According to the case study, Borries and his girlfriend; Swan Lee made arrangements to go for a holiday, where they planned to see the parents of Lee. However, Borries manager called Borries informing him that a customer had re-scheduled the launch of a product. The scheduled date happened to be during Borries holiday, and as a result, Borries found himself in a dilemma of whether to attend the launching event or to proceed with the holiday plans. Based on the information learned in this module, the dilemma above can best be described using the six dimensions of Jones moral intensity (Mansell, 2013). The first dimension that helps us to understand this situation of a dilemma is the magnitude of consequences. If Borries chose to proceed with the holiday, he faces the consequence of ruining the relationship between him and his manager, and this would have significant negative consequences on his job because the product launch will be delayed. Conversely, if Borries chose to attend the launch, he will jeopardize the relationship between him and the family of his girlfriend. This is a major consequence from the side of Borries, and this can be explained using the Social Consensus Theory (Mitchell, Agle, Wood, 1997). Proceeding with the holiday is a lack of loyalty and a sign of disrespect to the manager. In this regard, it is most appropriate that Borries should cancel the holiday trip and attend the product launch event. This decision is based on several factors, for example, according to the terms and condition of employment, it is the duty and responsibility of Borries to attend the functions of the company. Therefore, Borries will take it as an individual responsibility that he has to fulfill. In addition to this, Borries has to take into consideration the factor of temporal immediacy (Renouard, 2011). The cancellation of the holiday trip will have an immediate but temporal impact on his relationship with Marcus, Swan Lee, and the family members of Swan Lee; however, this will have a temporal consequence. On the other hand, proceeding with the holiday will have immediate and long term impacts on both the relationship and the career of Borries. This is because there are high chances that Borries will lose the contract that was between him and the client whose product was being launched. Equally, it is very likely that the manager will be upset, a situation that will come along with negative consequences. For example, Borries may receive negative appraisal from the manager, and he may also not get a job promotion. In the given case scenario, Borries chooses to stay back and attend the product launch event. He argued that his decision was right despite causing a major disappointment to Marcus, Swan Lee, and Swan Lees family. This can be described as an egocentric approach to the process of making decisions during an ethical dilemma (Schulzke, 2012). Swan Lee and Marcus tried to convince him to change his mind to no avails. In this regard, the two can be referred to as demanding stakeholders who have urgency but lack legitimacy and power (Joseph, 2010). On the other hand, Maxim 2 can be used to describe Borries manager because his decision was guided by the need to care for human dignity (Levitt Jacques, 2005). Interpersonal and Team-working Skills Throughout this module, I have developed effective inter-personal and team work skills that I have managed to utilize in the module. During the module, I have utilized Maxim 2, which advocates for accommodation third parties ideas (Shapiro Stefkovich, 2011). Throughout the module, I have been open to listening to the contribution of group members that I have worked with in class. My interpersonal skills were also guided by Kohlbergs Moral Development, particularly stage three of development. As an individual, I give my teammates the chance to present their views, and I evaluate them thoroughly in order to make informed decisions (Crowley Gottlieb, 2012). As an individual who embraces teamwork, I appreciate the efforts of all members of the groups that I work with. In the group that I worked with, my decisions were arrived at after in-depth consultation with all the members. In our team, we allowed all the members to make contributions, after which we evaluate and analyze them carefully to arrive at a proper decision. Working in a group like this is quite challenging because it entails making a lot of compromises. Conflicts often arise between individuals who have opposing views and the decision-making process is tedious and time-consuming (Granello, 2010). In summary, the observation of ethical leadership is vital in organization leadership and success. Organizational settings are normally faced with situations of an ethical dilemma; however, the individual in the situation of dilemma can make use of various theories of organizational behavior to make the appropriate decision. The final decision during an ethical dilemma should ensure the benefit of the majority of the parties involved. For example, based on the utilitarian theory, the course of action should maximize pleasure and minimize pain among those who are affected. References Ahmad, N. H., Ansari, M. A., Aafaqi, R. (2005). Ethical reasoning: the impact of ethical dilemma, egoism and belief in just world. Asian Academy of Management Journal, 10(2), 81-101. Crowley, J. D., Gottlieb, M. C. (2012). 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