Nkf Ethical Case
An ethical dilemma ‘arises when there 's a conflict between moral rules or when one is violated’ (Gale, 2010). National Kidney Foundation (NKF) is a Voluntary Welfare Organisation (VWO) which most of the funding’s come from the general public who are the ‘principles’ while Mr TT Durai is ‘agent’ engaged by ‘principles’ to make managerial decisions of NKF, according to Agency theory (Jill, 2010, p. 9). Conflict of interest arises when Mr TT Durai maximised his self-interest by falsely reported financial statement and using funds donated by various stakeholders to reward him with high perquisite. His action conflicted with original mission of NKF to ‘raise awareness of issues and problems with ESRD and deliver low cost palliative dialysis’ (Beng Geok and Yvonne, 2009). The controversy is that attractive perquisite has its’ role of motivating leaders of organisation to achieve organisational goals.
Mr TT Durai may argue he enjoys individual right to choose the types and amount of perquisite and his contribution in leading NKF to become ‘Single largest non-profit dialysis organisation in the world in 2005’ (Beng Geok and Yvonne, 2009) justifies his perquisite, using Resource Egalitarianism Principle (Julian, 2007). However, his argument is fallacious as his purpose is to serve self-interest and his actions have negative consequences on various stakeholders. Majority of Singaporeans who are donors, fundraisers and other non-profit organisations funding NKF operations are enraged to be deceived of their income and efforts when ESRD patients are not fully benefiting from government and society assistance in the form of lowest cost of dialysis treatment with greatest ease possible. Furthermore, reputation and credibility of corporate partners and local media is at stake. Legitimacy of governance and regulatory boards are also questioned as they failed in their function of realising NKF leadership crisis. Hence, TT Durai contravened the Utilitarianism principle, failing
Mr TT Durai may argue he enjoys individual right to choose the types and amount of perquisite and his contribution in leading NKF to become ‘Single largest non-profit dialysis organisation in the world in 2005’ (Beng Geok and Yvonne, 2009) justifies his perquisite, using Resource Egalitarianism Principle (Julian, 2007). However, his argument is fallacious as his purpose is to serve self-interest and his actions have negative consequences on various stakeholders. Majority of Singaporeans who are donors, fundraisers and other non-profit organisations funding NKF operations are enraged to be deceived of their income and efforts when ESRD patients are not fully benefiting from government and society assistance in the form of lowest cost of dialysis treatment with greatest ease possible. Furthermore, reputation and credibility of corporate partners and local media is at stake. Legitimacy of governance and regulatory boards are also questioned as they failed in their function of realising NKF leadership crisis. Hence, TT Durai contravened the Utilitarianism principle, failing
References: Wee , B. G., & Chong , Y. (2009, August 21). National Kidney Foundation of Singapore- An anatomy of a crisis. The Asian Business Case, Prawda, G. (n.d.). The Cultural Dimension of Business Ethics. Retrieved September 25, 2010, from http://www.philodialogue.com/31.html Folger, R. (1989) & Konovsky, M. (1989) Retrieved October 2, 2010, from Effects of procedural and distributive justice on reactions to pay rise decisions: http://www.jstor.org/pss/256422 Lamont, J. (2007). Distributive Justice. Retrieved October 2, 2010, from : http://plato.stanford.edu/entries/justice-distributive/#Resource Hofstede , G. (2009). Geert Hofstede™ Cultural Dimensions. Retrieved October 2, 2010, from : http://www.geert-hofstede.com/hofstede_singapore.shtml Solomon , J. (2010). Corporate Governance and Acountability. United Kingdom: A John Wiley and Sons, Ltd, Publication. Charity Council. ( 26 November 2007). Code of Governance for Charities and Institute of Public Character (IPCs). Singapore.