Corporate Governance and Ethical Responsibility

Internal and external stakeholders that may be dealt by Dr. Do Right daily at the hospital

Dr. Do Right will have to deal with the following internal stakeholders. Director of public health is one of the internal stakeholders.  He is the person who has to make sure that the books of accounts are well prepared and that they reflect the true state of affairs at the facility. The director in charge of nursing and the board committees’ members are all internal stakeholders who are involved with the operations of the hospital.  The external stakeholders comprise of people who are provide finances and any other type of help that the hospital may require. In this case, customers and patients who visit the hospital are part of the stakeholders. Suppliers, financiers and the local authority including the councils complete the list of external stakeholders (Ridley, A. 1998).

Internal and external stakeholder’s duty of loyalty

Board committees are the people who influence the day-to-day decisions of the hospital. As a result, Dr Do Right has to do as they instruct and also consult them on the major decisions that have to be made. Director in charge of public health is owed the duty of provision of the required workforce and the supplies that are required. As for the director of public health, he has to be informed of the operations and the going on in the hospital. Diseases as well as the number of deaths and their causes are part of the information that they need to know. They require knowing this on a day-to-day basis.  Customers and patients have to be provided with the best medical advice and treatment. Their welfare is part of what the hospital is there to look after. Providing a transparent and accountable means of spending hospital resources is the duty owed to the financiers. This is the only means for them continuing to support the operations of the hospital.  The suppliers have to be assured of prompt payment for the service that they have provided. Loyalty should also be shown in the fair allocation of supply tenders.

Similarities and differences between the potential conflicts of interest

Trust is something that has to exist between various stakeholders for the benefit and sustainability of the facility. The internal stakeholders are trusted to make sure that the external stakeholders get the services that they have come for or applied for. In a case, where the internal stakeholders are seen to work for their best interests, the trust existing in the patients as well as the financiers may be eroded. Eroded trust may leave the facility at a precarious position.  The transparency trust relationship is one that has to be in existence. Conflicts may arise when new members either in the board or in the committees join the facility. What to tell them and what not to tell them may cause conflicts among the existing members. Transparency on the operations of the hospital is required. External stakeholders will require their internal counterparts to conduct everything in a transparent manner. Records, allocations of tenders, hiring of new members as well as the expenditure of all finances needs to be transparent and accounted for. Without this, a conflict is bound to arise between the stakeholders involved in the operations of the hospital. Such conflicts have the capacity to halt operations, if they are not resolved.

Determine whether Dr. Do Right has fulfilled his ethical duty by reporting the illegal procedure

Dr. Do Right has not fully fulfilled his ethical duties as far as reporting the matter is concerned. Even though he is able to seek attention of the Regional Director Compliance Manager as well as the committee involved, not all the stake holders were notified. The board being one of the stake holders that he reports to ought to have been notified as soon as the matter was brought to his attention. The board being an integral part of the affairs of the hospital means that they are entitled to know each and everything that goes on in the facility. Waiting for results for two years is also a long time for him. He should have enquired from the people responsible on why it was taking so long to get the results yet it was a matter that was taking place and each day that passed without it being resolved exposed more patients to the possibility of deaths as well as negligent behavior that may have had catastrophic results.

Recommended additional steps Dr. Do Right ought to have taken

Dr. Do Right ought to have had the staff as well as the departments responsible for where the malpractices were happening investigated. This would help to know which of the employees were involved in the deaths and whether negligence was a reason for the deaths. Any employee suspected or found guilty of being negligent should have been suspended immediately pending the outcome of the investigations. Such an action would reduce the number of deaths that were experienced. Each head of the department should also have been responsible for the actions taking place in their departments. They are the ones who know each employee and their duties. This would have greatly reduced the liability of the universal human care hospital.

Description and application of the deontology principle to Dr. Do Right’s ethical dilemma

The deontological theory affirms that one should stick to their responsibility and tasks when examining a moral dilemma.  Each person should follow the duties that they have to another person or society (Singer, P. 1981).  Doing this is considered to be morally and ethically right. Dr. Do Right should not have accepted the medical award of the year conferred upon him. This is given the fact that he was aware of the deaths and the malpractices that were taking place in his facility under his leadership. Accepting the award was going against the principle of the deontological theory.

Description and application of the utilitarianism principle to the Dr. Do Right’s ethical dilemma

Utilitarianism theory is based on the ability for one to predict the consequences of each action that occurs. When making a choice, which will benefit the majority of the people is the one that is ethically correct (Shaw, H.1999). This principle is divided into act and rule utilitarianism. Dr. Do right should have followed on the results of the investigation and sought to know what was the real source of the deaths. This is a choice that would have been morally and ethically correct. It would also have been the best choice as all the patients would benefit from the results of the investigation conducted and also the subsequent dismissal of the guilty parties. Making such a choice would also have benefitted all the stake holders as the future sustainability of the facility is dependent on such choices.

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