Critical Ethical Thinking Case Florida State College of Jacksonville Business Law I BUL3130 March 15, 2010 Abstract Many companies practice things that are unethical and illegal because it yields more profits to use such practices. Among these companies are the collection agencies because their main jobs are to use tactics to harass customers in an unlawful way using trickery to get what they want. In this case shows how managers prefer to use such tactics, but other managers prefer to use tactics or practices that are ethical and legal to get what their companies want.
Also, some companies prefer the long term benefits of restructuring the existing practice for their shareholders because if these companies continue their current practices can result in legal responsibility. Critical ethical Thinking Case In this type of scenario you can see what is happening in our society today where many people suffer from collection agencies. Our country’s economies has affected many people fall into the problem of being unable to pay their debts on time and are forced to deal with collection agencies.
Many companies have their own collection agencies offices so they do not have to pay to other companies that engage in this type of business. A collection agency is a business that seeks pay on debts that people or any business owed. The majority of collection agencies run as negotiators of creditors and collect sum unpaid for a cost or proportion of the total quantity due. The shareholders are the holder of equity securities of a corporation and they can be called stockholder. The shareholders are always trying to make money, not to lose it.
That’s why managers require inquiring themselves whether the planned action is legal. Also, managers need to pay attention to see if the interests of the shareholders are being served. Also, managers need follow the “Ethical Business Leader’s Decision Tree” is a very handy tool for the managers to always do the right thing. That tree gives managers an idea about the decision they are going to make or take is the legal or not. However sometimes their decisions is influences on what the shareholders value, because they have to think in the best of the corporations.
When refer to what is ethical and is the action ethical, most of the times these questions are hard to answer because depend on what the manager consider ethical about their action. There are two types of ethical schools: teleological and deontological. The first school teleological worried with the consequences of something, and second school deontological center on the incentive at the back an action quite than the consequences of an action. In this case, collection agencies use the deontological school.
These agencies do not care about the consequences of their actions. There are provoked primarily by the need to maximize shareholder value. These types of practices can bring laws suits and other types of legal problems. Companies often continue unethical practices because they prefer the short term benefits to gain quick profits, but end up losing more than they gained. It’s better for companies to prefer the long term benefits and do ethical practices because they can be some legal action for doing unethical practices.
Most CEO prefers the long term benefits and waits to get profits because they worried about their reputation. It takes a lot of time to construct a reputation, and only a tiny moment to lose it all. In conclusion, in this case we can account for as are the practices of collection agencies. Many agencies worked directly for other companies such as banks, credit cards or other types of businesses. Numerous of these collection agencies only things they care about are making money and they do not watch the practices they use to treat customers as long the client pay the debt.
Several of their practices are illegal and unethical, but if they keep practicing in this way ultimately end up losing more money because customers can sue them. These companies need to improve or change their practices of collecting money and that starts from managers or heads of these agencies.
References * Constance E. Bagley ;amp; Diane W. Savage (2010). Ethics and the Law: Foundation of the Legal and Regulatory Environment. In Vicky True (Ed. ), Managers and the Legal Environment (pp. 26-33). Location: Publisher