Assignment Task:
Bupa Seaforth
Bupa’s purpose is to help their customers lead ‘longer, healthier, happier lives’ (Bupa 2019). However, this strategy is in contrast to the ethical issues which arise in this case study. There are a number of ethical issues which arise when considering the case of BUPA Seaforth, most of which stem from one key problem; BUPA management failed to maintain an adequate number and quality of staff to enable the provision of basic care standards, resulting in a risk to the health and safety of their residents. level of staff numbers
Staff shortages
Audit and employee opinions indicate that there are staff shortages. It seems that management is basing their decisions regarding human resource management on efficiency rather than by way of delivery of quality care. By employing less staff management is minimizing spending on payroll, however, the workforce is under significant strain. This is contributing to an unhappy workplace which is being reflected in some circumstances in the behavior toward residents.
This approach is typical of the agency theory wherein the manager makes decisions on behalf of the shareholder, whose perspective is primarily economic (Heath 2009). Many have criticised this principle-agent relationship as being unilateral (Heath 2009; Frooman & Pouryousefi 2017). Frooman and Pouryousefi (2017) suggest that this unilateralism in agency theory and morality are ‘mutually exclusive’ (Frooman & Pouryousefi 2017, p.164).
Maximizing shareholder wealth can be a goal alongside benefits to employees and residents, and in fact, separating the two perspectives can be detrimental to the organization’s reputation (Shahzad, Rutherford & Sharfman 2016). In contrast to the agency theory, stakeholder theory considers shareholder requirements alongside the perspectives of those other than shareholders. Managers have a moral obligation to the interests of other stakeholders (Heath 2009).
Duty of care
Bupa’s management has a duty of care to uphold to residents and employees. By enabling an environment where elder abuse can occur, they have breached this duty of care. The theory of care ethics has been developed by way of a values-based framework. Care, as defined by Gilligan (1982), is a relationship requiring response and reaction to another person’s needs. Supporting this theory, Noddings (1984) claims that ‘care’ is a moral relationship with another person. For the shareholder, Nicholson and Kuruckz (2017) purport that the sustainability of a company can be supported by leadership with an understanding of morality and ethics of care.
Failure to respond
In response to the failed audit in September 2018, Bupa employed a new leadership team together with independent consultants to provide recommendations. However, despite this commitment, Bupa has failed to reduce the risk of health and safety to their clients. In the most recent audit conducted one year after the issues arose, the facility met only three of eight Aged Care Quality standards and has consequently been assessed as posing a serious risk to its residents (ACQSC 2019). This highlights that management has not made an immediate satisfactory response. This does not align with their customer charter which states ‘if we get things wrong, we do our best to make the right’ (Bupa 2019).
Two opposing leadership styles that can be explored in this case are transactional and transformational leadership. Transactional leadership is routine in style and procedure based on achieving organizational goals (Kanungo 2001). Managers will achieve this by way of employee compliance (Kanungo 2001). In contrast, transformational leaders have the vision to achieve their mission by empowering staff to align their values with those developed by the company (Kanungo 2001). However, moral character, ethical values, and morality will determine whether the transformational leader is successful in positive change (Bass & Steidlmeier 1999).
Reactive response
Each of the examples of neglect or abuse given in the case have been brought to BUPA’s attention by family members, and the failure to meet the standards was highlighted under external audit. This indicates that BUPA has made reactive responses and has not done enough to curtail the issues internally via proactivity and preventative measures.
Caregivers have a moral obligation as well as legislative requirements to take action when they suspect or are aware of the abuse or neglect of residents (Esseltine 2019). However, Esseltine (2019) suggests that an individual’s understanding of morality can impede active response. For those who do have sound understanding of ethical behavior, the discomfort associated with whistleblowing on co-workers whom they are required to continue working alongside can hinder the likelihood of reporting (Esseltine 2019).
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