Current Ethical Issue in Business-World Bank

Essay by dawnybabyCollege, UndergraduateB+, June 2007

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Current Ethical Issues in Business � PAGE �1�

Running head: Current Ethical Issue in Business

Current Ethical Issue in Business

Learning Team D

Dawn Spence

University of Phoenix


Ethics in Management

Vickie Sims, Ph.D.

May 5, 2007


Most people involved in business, whether functioning as a small business owner, employee, or chief executive officer of a multinational company, eventually face ethical or moral dilemmas in the workplace. Such dilemmas are usually complex, for they force the person making the decision to weigh the benefits that various business decisions impart on everyone, including themselves. It is hopefully that businesspeople are likely to reach and act on morally appropriate decisions if they do not lose sight of the fundamental issue of fairness; but those who get sidetracked by issues, such as World Bank president Paul Wolfowitz, who personally orchestrating a high-paying job and guaranteed promotions for a bank employee with whom he is romantically involved other hand, can often reach ethically distorted choices.

The World Bank as its name implies, a multi-national organization. It is based in Washington, and consists of two unique development institutions owned by 185 member's countries-the International Bank for Reconstruction and Development (IBRD) and the International Development Association (Aversa, 2007).

Paul Wolfowitz, President of the World Bank, has been accused of ethics violations over getting his girlfriend a promotion at the bank. Shaha Riza, who worked for the World Bank for eight years before Wolfowitz got there; received a hefty salary increase, a promotion, and a move over to the State Department to avoid a conflict of interest but remained on the World Bank payroll. She had earned close to $133,000 a year as a communications adviser in the bank's Middle East department, however her pay eventually rose to $193,590, which is more...