Organizational Behavior

 

Use at least four scholarly sources and remember to demonstrate a thorough understanding of the READ and Attend sections in your essay. Cite your sources in APA format.
• Discuss the extent to which the company’s action in this scenario was ethical.
• Explore the moral intensity and ethical principles relevant to this incident.
• What implications does this have on Team Members?
• In your opinion does this infringe on your personal time away from work.

Scenario
A large multinational grocery chain that emphasizes healthy lifestyles is recognized as one of the nation’s “greenest” companies, has generous employee benefits, and is perennially rated as one of the best places to work. Employees receive a 20-percent discount on company products. However, those who participate in the company’s voluntary “Healthy Discount Incentive Program” receive up to an additional 10-percent discount on their purchases (i.e., up to a total 30-percent discount). These additional discounts are calculated from employees’ blood pressure, total cholesterol (or LDL) levels, Body Mass Index (BMI), and nicotine-free lifestyle. For example, the full additional 10 percent discount is awarded to those who do not use nicotine products, have 110/70 or lower blood pressure, have cholesterol levels under 150, and have a BMI of less than 24. Employees do not receive the additional discount if they use nicotine products or have any one of the following: blood pressure above 140/90, cholesterol of 195 or higher, or BMI of 30 or higher. In his letter to employees when announcing the plan, the CEO explained that these incentives “encourage our Team Members to be healthier and to lower our healthcare costs.”

Sample Solution

The extent to which the company’s action in this scenario was ethical is a complex question with no easy answer. There are a number of ethical factors to consider, including:

  • Moral intensity: The moral intensity of an issue refers to the degree to which it is perceived as important, immediate, and involving clear victims and perpetrators. In this case, the issue of health and wellness is generally perceived as important, but the specific incentives offered by the company may not be seen as immediately relevant to most employees. Additionally, the company is not directly harming anyone by offering these incentives, but it is indirectly rewarding some employees for being healthier than others.
  • Ethical principles: There are a number of ethical principles that could be applied to this case, including:
    • Autonomy: The principle of autonomy recognizes the right of individuals to make their own decisions about their lives. The company’s incentives could be seen as undermining employees’ autonomy by encouraging them to make health-related decisions based on financial incentives rather than their own personal values.
    • Justice: The principle of justice requires that people be treated fairly and equitably. The company’s incentives could be seen as unfair to employees who are not able to achieve the desired health metrics, regardless of their reasons for not being able to do so.
    • Beneficence: The principle of beneficence requires that we act to promote the well-being of others. The company’s incentives could be seen as beneficial to employees who are able to achieve the desired health metrics, as they could help to reduce health care costs and improve quality of life.
  • Implications for team members: The company’s incentives could have a number of implications for team members, including:
    • Financial incentives: The additional discounts offered by the company could provide a financial incentive for team members to improve their health. This could lead to healthier team members, which could benefit the company in a number of ways, such as reduced health care costs and increased productivity.
    • Personal privacy: The company’s incentives require team members to disclose personal health information, such as blood pressure, cholesterol levels, and BMI. This could raise concerns about personal privacy, as team members may not want their health information shared with the company.
    • Peer pressure: The company’s incentives could create peer pressure for team members to improve their health. This could be a positive thing, as it could motivate team members to make healthy changes. However, it could also be a negative thing, as it could lead to unhealthy competition or feelings of inadequacy among team members who are not able to achieve the desired health metrics.
  • Infringe on personal time away from work: The company’s incentives could be seen as infringing on team members’ personal time away from work. The incentives require team members to track their health metrics and make changes to their lifestyle, which could take time and effort. This could be a burden for team members who are already busy with work and family commitments.

Ultimately, the ethicality of the company’s action in this scenario is a matter of opinion. There are a number of factors to consider, and there is no easy answer.

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