Blog 3: Conflicting Moral Demands

I find the topic of conflicting moral demands very interesting, as it pertains to nearly all aspects of business. When a conflict of interest arises, it can be very awkward and uncomfortable for those in charge to step in and remedy the situation. In this case presented by Perry, the administrator has no support in dealing with what appears to be a blatant violation of the ethical code. Unfortunately, the company and CEO have more-or-less fostered an environment of less-than-ethical behavior. It astounded me that everyone the COO asked for help dismissed him, as though it was too much of a bother to take on the board. It is also unfortunate that oftentimes, the person witnessing the ethical breach is not in a position to do anything about it. They are often in jeopardy of losing their jobs or being shunned by their coworkers. This makes doing the right thing very hard to actually do.

This case helps to emphasize how important ethics committees are, especially in the healthcare industry. Conflicts of interest can arise in so many different ways in that industry. They can range from what treatment to advise to which doctor should perform surgery on a patient. In this case, the ethics committee would oversee both the board and the CEO, ensuring that they are not abusing their positions. There is no reason the CEO should be able to take vacations whenever he likes at other people’s expense, and he should not use company money to hire a personal assistant.

The reading about managed care also ties into the topic of conflict of interest, as sometimes physicians will choose the more cost-effective treatment to better suit the hospital, even though the more expensive treatment option may be more beneficial to the patient. Conflicts also arise in managed care situations when doctors are financially rewarded for choosing the cost-effective method as opposed to the more appropriate method. Patients rely on their trust of the doctor, and if they were to find out that bonuses were driving the amount of time spent with them, they may begin to lose faith in their level of competence. This can be very damaging for the entire healthcare industry.