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Organizational Ethics Issue Resolution

Essay by   •  July 23, 2011  •  1,864 Words (8 Pages)  •  2,183 Views

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Introduction

Organizational ethics is important to maintain for any company. Many organizations will outline their code of ethics for employees to have an understanding of the type of behavior that the company expects at all times. In some situations, a company will fall under the guidelines of a specific governing body. This is the case with Foot Solutions.

Foot Solutions is a hybrid of a retail location and a Pedorthic facility. Pedorthics is the practice of fabricating, modifying, and fitting orthopedic footwear and orthotics. An individual, who is a Certified Pedorthist (Cped), is someone who is a credentialed practitioner in the field of Pedorthics. The governing body who provides this credentialing is the American Board for Certification in Orthotics, Prosthetics, & Pedorthics, Inc. (ABC). The majority of Foot Solutions locations have a Cped on staff that is responsible for following the Code of Ethics outlined by the ABC. This paper will discuss a specific ethical issue that exists at one of these locations and make suggestions for issue resolution and implementation.

Issue Clarification

The particular Foot Solutions has a three person sales team. Each month the total sales per category are compiled and reported for each sales associate. The company has a specific category for the overall sales of custom molded orthotics. The company tracks the overall custom molded orthotics sales per employee and each employee has a monthly sales quota of 30% of all sales to be in the category of custom molded orthotics. This is a common practice in many sales organizations. Companies set sales quotas for sales representatives to ensure that the products the company is trying to sell are being sold. This practice itself would not be normally considered an unethical practice but the sales representatives at this particular Foot Solutions are either a Cped or on their way to becoming one. Since this location has Cped’s on staff and people who are on the path to becoming Cped’s, they are violating their ethical responsibility to the ABC by selling custom molded orthotics when inappropriate.

The ABC Code of Professional Responsibility specifically states in section C2.2 that, “All decisions by the ABC Credential Holder must be made with the understanding and intent that the patient’s best interests are the primary concern.” (American Board for Certification in Orthotics & Prosthetics Code of Professional Responsibility, February, 2006. p.2). If an employee at this Foot Solutions has to meet sales quotas in any given month for custom molded orthotics sales, they may not be able to meet this ethical responsibility outlined by the governing body in their chosen field. Any Cped who violates the Code of Professional Responsibility is subject to disciplinary actions (American Board for Certification in Orthotics & Prosthetics Code of Professional Responsibility, February, 2006). This creates an ethical dilemma for any employee at this location that wants to meet the quotas set forth by the company.

Stakeholder Analysis

In this particular ethical situation, three stakeholders involved. The first stakeholder would be the owner of the particular location. This person has purchased a franchise with the goal of making a profit while being able to help people. The primary concern of the owner of the company is to remain profitable. Without profit to maintain the store and employees, the owner would not be able to meet their secondary goal of helping people. One of the key products that offer profit to the owner is custom molded orthotics.

The second stakeholder would be the sales associate. This person has a requirement to meet company quotas and to meet ethical responsibilities outlined by the ABC. The requirements set forth by the company are a potential requirement for employment with the company. If sales quotas are continuously not met by the sales representative, they face possible disciplinary action. The sales associates also have a responsibility to uphold the Code of Professional Responsibility from the ABC. The primary goal of the sales associate should be to provide the best service to customers possible.

The third stakeholder in this situation is the customer. The customer who walks into a Foot Solutions will do so either on their own or via referral from their physician. In either situation, the goal of the customer is to receive the product of service that will help them with their issue for the least amount of money.

Values Identification

The values that are apparent in the ABC’s Code of Professional Responsibility are that care for the patient is the primary concern. Values are defined in the Code of Professional Responsibility as honesty, integrity, and dignity (American Board for Certification in Orthotics & Prosthetics Code of Professional Responsibility, February, 2006). These values are to be upheld at all times for anyone engaged in the practice of Pedorthics.

The values that are displayed by Foot Solutions are mainly the same as those outlined by the ABC. The company contributes to charitable organizations and makes every effort to keep their customers happy while providing excellent service. One of the core values outlined by the company coincides with the ABC which is meeting the needs of the customer. There have been instances where customers with severe issues have come into the location for service but could not pay. The owner of the company offered this customer a monthly payment plan and a discount so they could get the services they needed. This shows that the company is dedicated to helping the customer even if it means hurting the bottom line.

Issue Resolution

The company should focus on their primary goal which is to care for the patient or customer. If patient care is the primary goal for the company, sales associates will always strive to provide appropriate service versus up selling product to meet sales quotas. The quota outlined by the company of 30% of total sales volume to be in the category of custom molded orthotic sales should be a guideline instead of a quota. Associates should strive to provide the best service possible to the patient and if that means a custom molded orthotic is the best possible solution for the patient, then by all means they should sell them one. If the patients needs can be met by an over the counter product that is less expensive, the sales representative should remain within their ethical guidelines outlined by the ABC and provide them with the less expensive solution.

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