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Ethical Issue

Ethical issues are common in an organization due to the diverse characters from different backgrounds one encounters. Thus, various ethical issues have been experienced in the organization I serve that has been a learning lesson. One of the ethical issues that occurred in the organization involved the misappropriation of the funds. One of the cashiers assigned with the role of receiving cash from the donors was involved in the embezzlement of the funds. Indeed, it is against the organization’s policy for a worker to misuse the organization’s funds for his or her own benefit. Consequently, the cashier was penalized by the management for embezzling the funds for his own interests. Accordingly, the paper presented reflects on the issue and gives recommendation on the steps that should be undertaken in the future to prevent such an ethical issue.

In early last year one of the cashiers tasked with the role of collecting and recording the funds received from the donors decided to embezzle some funds by not recording the actual amount received from the various donors. The organization I serve is involved in charity work of improving the wellbeing and health of the children as nonprofit organization. This aspect means that the organization is a charity group that depends on the funds contributed by the donors to facilitate the services it offers to the vulnerable children. Consequently, the cashier while on duty took the advantage of been the sole custodian of receiving and recording the amount received to record lower amounts from the various individuals and organizations contributing the money to embezzle a proportion of the total amounts. The nonprofit organization under the consideration in the discussion is the Ronald McDonald House Charities (RMHC). Unfortunately to the cashier, the issue was discovered two weeks later. The management was alerted by an external auditor hired to audit the financial records of the NPO.

The auditor found the recorded amounts differed with the receipts issued to the individuals and organizations that had donated the money. The auditor contacted the management notifying them on the differing amounts recorded in the financial records with the appreciation notification to the people and organizations that had contributed the funds. Accordingly, the management of the Ronald McDonald House Charities took an investigation to track the cashier involved in the fraud. The investigation identified the particular cashier involved in the misappropriation of the funds.

The management of the organization took the decision of punishing the cashier through a suspension instead of reporting the issue as a criminal case with the authority. Thus, the cashier was given three months of suspension without payment as a deterrence measure against other cashiers and workers in the organization that might take advantage of the position they have been assigned to promote their individual interests. This measure undertaken by the management had a significant effect in the organization due to the message it sent to the workers. Even though the punishment appeared unfair due to the double effect of been suspended and not receiving any form of payment for three months, it has been effective in changing the behaviors of the workers in using the assets within their positions. Previously, the employees had the tendency of using the organization’s assets for their own benefits against the established policies. However, the supervisors and the top management did not take strict punishment against such behaviors during that period, which motivated the workers to continue with the undue behaviors in using the assigned assets. Consequently, the decision to punish the driver with three months of suspension has been effective in cautioning the workers from misusing the assigned assets.

Ethical issues can be interpreted using different ethical theories that are used in determining if a given issue is an unethical. One of the ethical issues that can be used in reflecting on the issue that occurred in the organization is the theory of beneficence. The theory of beneficence provides that one should do what is good and right (Melden, 2013 ). The decision by the cashier to embezzle the funds by taking advantage of the position offered in the organization in unethical under the ethical theory of beneficence since it is not right because it goes against the NPO code of ethics of ensuring funds and assets should not be misused by the employees. Thus, this ethical theory of beneficence can be used in guiding the workers of the organization in ensuring they are not involved in unethical conducts while serving the organization. The employees in the future should follow the beneficence theory by ensuring what they do while serving the organization is good and right as provided in the established code of ethics. Similarly, the ethic theory of deontology is another critical theory that should guide the employees in serving the organization. The theory of deontology indicates that people should follow their duties and obligation in making the decisions (Melden, 2013 ). The theory demonstrates that the cashier’s action was unethical since he failed to keep the obligation and duty of protecting of the organization’s funds and assets under the position assigned. Thus, the employees of the organization should ensure that their decisions and conducts are line with the duties they have been assigned and within their obligations.

References

Melden, A. (2013 ). Ethical Theories. New York: Read Books Ltd.