A few weeks later, you ask her about the well-being of her father and she informs you about his successful surgery and that he is recovering. She then confides in you that the bank manager was kind enough to facilitate the release of Rs. 10 lakh from a dormant account of someone to pay for the operation with a promise that it should be confidential and be repaid at the earliest. She has already started paying it back and will continue to do so until it is all returned.
(a) What are the ethical issues involved?
(b) Evaluate the behaviour of the bank manager from an ethical point of view.
(c) How would you react to the situation?
(Answer in 250 words)20
Introduction
The case presents the issue of value conflict wherein a life-saving emergency situation stands against the rules and procedures of the organisation.
- a) Ethical issues involved:
- Bank manager:
- Business ethics vs. Personal ethics
- Organisational Values vs. Individual Values
- Professional Values vs People Oriented Values
- Compassion, Empathy vs Rules
- Personal Integrity vs. Financial Integrity, Transparency
- Means vs Ends
- Myself:
- Compassion and Personal ethics as against Honesty, Integrity, and Professional ethics
- b) Ethical evaluation of the bank manager’s behaviour:
- Ethically seen, the decision of the Manager is a one-of-a-kind decision. The complexity and subjectivity of the situation demands an unprecedented action. Nevertheless, it is pertinent to assess the pros and cons ethically.
- How is it justifiable?
- The Manager has clearly acted on lines of situational ethics, wherein the demands of the situation are prioritised over and above the rules and procedures. Here the situation demanded a life-saving decision. Seen from this high priority, the Manager’s decision is justifiable because:
- The employee is devoid of any other resource
- Any delay in decision-making involves life-risk
- Available and unused resource is used prudently to meet the complexity of the situation
- It has not caused any immediate harm to anybody or the organisation. (However, this is questionable in the long run to the functioning of the organisation.)
- How is it unjustifiable?
- Seen from the values of professional ethics, the decision to use the funds of a dormant account is unjustifiable. This is because –
- It amounts to misuse of authority and breach of procedures
- It sets a wrong precedent
- It affects the integrity of the organisation in the long run
- The same avenue could also be used for inappropriate needs and encourage corruption
- Seen from the values of professional ethics, the decision to use the funds of a dormant account is unjustifiable. This is because –
- The Manager has clearly acted on lines of situational ethics, wherein the demands of the situation are prioritised over and above the rules and procedures. Here the situation demanded a life-saving decision. Seen from this high priority, the Manager’s decision is justifiable because:
- c) Reaction to the situation:
- Factors that I would consider in this situation:
- Urgency of the situation
- Economic situation of my friend; lack of other sources of support for my friend
- Lack of personal resources to help my friend
- Friend has already started paying it back and will continue to do so until it is all returned (Taking this as a certain case).
- Integrity of the organisation
- Long-term professional and financial health of the organisation
- Professional ethics to stand up to misconduct in the organisation as an Executive
- My limited powers to take authoritative decisions being the Executive
- Addressing misuse of authority in the organisation:
- Make written suggestions to the central authority to formulate procedures to rightfully meet the emergency medical needs of the employees and their families.
- This would avoid any misconduct in the organisation and improper use of funds.
- The financial and professional integrity of the organisation and the employees will be preserved in the long run.
- Also, take initiatives as an executive to make the functioning of dormant accounts transparent, so that the funds are not misused.
- Make written suggestions to the central authority to formulate procedures to rightfully meet the emergency medical needs of the employees and their families.
- Addressing the needs of the friend:
- Advise the friend to make the repayment properly and not to resort to any such inappropriate means to meet her ends anymore.
- Contribute my possible part as a friend for speedy repayment
Conclusion
In all, as the decision is already taken on condition of repayment, and the ends are met, any immediate reaction will not reverse the act.
However, given the fact that the means are not justified, procedural initiatives to make the functioning and decisions of the bank transparent and bank authorities accountable will be taken to avert such acts further.
