Corporate Governance and Ethical Responsibility: Universal Human Care Hospital
Buy custom Corporate Governance and Ethical Responsibility: Universal Human Care Hospital essay
Internal and External Stakeholders at Universal Human Care Hospital
There are three different types of both internal and external stakeholders whom Dr. DoRight, as the President of the facility, deals with on a daily basis. The first type of the stakeholders is the employees who work at the facility. It should be noted that a company’s stakeholders are individuals or organizations that have either a direct or indirect interest in the company's activities. Universal Human Care Hospital has about 5,000 employees in its records, including doctors, nurses and the administration support.
These employees provide professional services to the patients and get extrinsic rewards from the company. Employees are internal type of stakeholders and thus, Dr. DoRight meets and works with them daily on matters related to the quality of services provided, as well as patient care and support.
Second, there are patients who are referred to as customers of the organization. Notably, patients have a direct interest in the operational activities of the facility. They pay fees for medical services provided in return. According to statistics, under the supervision of Dr. DoRight, the firm provides medicals services to about 20,000 patients. It should be noted that these patients are considered to be customers at the facility. They are also an external type of stakeholders and Dr. DoRight is expected to deal with them on matters related to the services they need and are offered, as well as the quality of support they receive during their in the hospital.
Third, there are the communities surrounding the facility. Dr. DoRight should develop a relationship with this type of stakeholders too, given the fact that they have many expectations concerning the hospital and its health care services. This is because they track and keep record on how well the Hospital operates and thus, their interest rests with the type of the services the facility provides to the community. Notwithstanding, the stakeholders are externalities in the operations of the firm. It is also important to note that the facility under the supervision of the President has a corporate social responsibility to the community.
Such corporate social responsibility as welfare initiatives, as well as projects related to the construction of social amenities for the surrounding communities is an issue the facility needs to consider at all times. Moreover, these stakeholders ensure security of the company, thus allowing it to operate in the favorable environment.
Fourth, there are trustees who possess the loyal duty of acting in good faith. Trustees act in good faith in matters which pertain to the entire supervision of the trust. They should not favor any beneficiary over others, unless they are obligated to do so be the legal agreements. Furthermore, they are expected to conduct their actions to the level which is authorized in terms of trust in order to avoid the loyalty breaching.
Fifth, there are corporation partners who should share their respective objectives of how to make the business operations effective and efficient. Consequently, the success of this business is meant to be translated to positive economy, as well as the well-being of the society as a whole. Corporation partners should present distinctive levels of feedback on values and social considerations of the organization in order to incorporate the elements of ethical identity.
Potential Conflicts Of Interest That May Exist Between the Internal and External Stakeholders
In the course of any business operations the aspect of conflicts of interest is considered to be relevant. Conflicts of interest arise whenever the objectives an needs of different stakeholders are perceived to be operating at an unfavorable path. Thus, it can be stated that these potential conflicts affect the objectives of both internal and external stakeholders of the company.
The Interests of External Stakeholders External Stakeholders are the ones involved in such activities as planning, organizing and controlling different undertakings of the firm on a daily basis. They are interested in accrued benefits, the chances of professional growth, the survival ability of the company, as well as the amount of profits, which are the main concerns of the corporate partners and shareholders (Cantoria, 2012).
The Interests of the Internal Stakeholder
The internal stakeholders are the ones who have a direct interest in the business operations. They are commonly referred to as the employees of the company. Basically, their needs are directly affected by the routine operations of the organization they work for. Thus, the reason of potential conflicts may arise out of such factors as remuneration, the working conditions the company provides, job security, as well as its tenure, training prospects and other career opportunities opened in the firm. In that case, some of the conflicts of interest may arise due to the different manner in which the corporate partners and the true owners of the company perceive the aims of the business (Cantoria, 2012).
It should also be noted that the aims of a profit-making organization are completely different from those conducted out of charity. Second, the conflicts of interest may arise whenever different stakeholders fail to understand the overall objective of the company. The important fact to realize is that the overall objective of any business is to operate in an effective and efficient manner in order to make profits and minimize losses. Whenever the different stakeholders fail to comprehend to this fact they end up creating turmoil which creates obstacles for growth and sustenance of the firm.
Third, the conflict of interest amongst the internal and external stakeholders may arise whenever they fail to understand the degree of power and authority that an employee at his position executes. For instance, the staff of the Hospital should understand the level of power they can execute in the course of operations, so that they could avoid conflicts with their workmates. Consequently, the Hospital’s staff possesses the duty of loyalty (Cantoria, 2012).
This becomes evident in the course of their duties and responsibilities that employees cannot be allowed to disclose any information that does not fall within the scope of their jurisdiction. In case when employees are embarking on activities which profit them instead of the owners of organization, an apparent conflict of interest arises. The employment law advocates for employees to refrain from profiting from their employers, given the fact that they owe fiduciary duty to restrain from either property or information which is considered to be possessed by the organization as a whole.
It should also be noted that the previously mentioned fiduciary duty does not prohibit employees to engage in such activities as planning, organizing and outfitting a competing firm while still working for the beneficiary. Furthermore, they are not prevented from alerting clients of their possible withdrawal from the organization as long as they do not engage in business activities that are competitive to the company's ones. In case of departure, the employee is depicted as having been released of their respective fiduciary duty to the employer (Cantoria, 2012).
In addition, in cases when there is no fraud, restrictive agreements or stealing of a customer’s list, former employees are allowed to compete with their formmer employers without fear for breaking any kind of contract made. In cases of trustees they only receive compensation for the services they provide. However, they are restricted from profiting in the already-formed trust relation. This means that trustees are not allowed to conduct any form of business activity for the sake of trust and benefits from the activity, either direct or indirect. Generally, trustees under the fiduciary duty are not allowed to purchase any form of property from the trust, sell items to it or purchase any amount of property which was meant to have been acquired by the trust. Basically, trustees are not allowed to contemplate activities which may lead to the potential conflict of interest between them and the trust.
Has Dr. DoRight Fulfilled His Ethical Duty by Reporting the Illegal Procedures?
Taking into consideration the manner in which operations are conducted in the Hospital, it can be stated that Dr. DoRight has not fulfilled his ethical duty of reporting the illegal breaches being witnessed in the Hospital as he was obligated to do. Despite the fact that he had taken the initiative to alert the Regional Director Compliance Manager and the Executive Committee, it is evident that Dr. DoRight did not take up the initiative to follow-up with the investigations conducted by the Executive Committee and compliance team. Still, Dr. DoRight, being a manager and the chief administrator, was obligated to affect the manner in which operations continued to be conducted within the Hospital.
By the definition, an ethical duty refers to the moral responsibility expected from individuals, as human beings. This means that one is required to perform his or her duties in a manner which promotes humanity and care for human concerns. In the case of the Hospital operations, it is evident that both the doctors and the manager do not pay much attention and are “not interested” in the protection of human life and dignity. The doctors in the Hospital are engaged in practices which diminish the aspect of humanity by allowing multiple deaths of clients to happen, while the Manager keeps silence and does nothing as this miss-endeavor keeps going on. This ignorance and mistreatment is a breach to ethical duty expected from professionals.
Application of Deontology Principle to the Ethical Duty of Dr. DoRight
The deontology principle states that individuals should conform to their respective obligations and responsibilities while analyzing an ethical dilemma. This means that people should perform their duties and help other members of the society, given the fact that upholding one’s duty is considered to be ethically correct. In case of Dr. DoRight, he has failed to adhere to his direct duties and obligations in order to affect ethical matters in his organization. As a manager and chief policy-maker, he has continued to neglect his patients by ignoring the issues which occurred in the Hospital. In addition, he has also failed in making any follow-ups. Thus, in my way of thinking, it is fair-time for him to act wisely and make good choices.
The Utilitarianism Principle and its Application to the Ethical Duty of Dr. DoRight
The utilitarianism is the ethical duty which is concerned with doing the greatest good for the largest amount of people. Under this principle, certain standards are expected to be sacrificed for the protection of a vast majority of people. Talking about Dr. DoRight, he was expected to carry activities with a primary concern to protect as many patients as possible. He was also expected to have sacrificed his position as a manager and protect the interests of the patients who were suffering from the unprofessional care of doctors and nurses (Sexton, 2008).
Buy custom Corporate Governance and Ethical Responsibility: Universal Human Care Hospital essay