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Assignment Activity Unit 6

This paper examines the ethical issues surrounding delayed employee payments at Andalusia Hospital in Saudi Arabia, highlighting the violation of workers' rights and potential legal repercussions. It emphasizes the need for a strong ethical framework, including a code of conduct and ethical leadership, to address these challenges and improve employee relations. By implementing these measures, the hospital can mitigate legal risks and enhance its reputation and employee morale.

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0% found this document useful (0 votes)
22 views

Assignment Activity Unit 6

This paper examines the ethical issues surrounding delayed employee payments at Andalusia Hospital in Saudi Arabia, highlighting the violation of workers' rights and potential legal repercussions. It emphasizes the need for a strong ethical framework, including a code of conduct and ethical leadership, to address these challenges and improve employee relations. By implementing these measures, the hospital can mitigate legal risks and enhance its reputation and employee morale.

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Introduction

This paper investigates the ethical implications of delayed employee-due payments at Andalusia Hospital
in Saudi Arabia. The investigation looks at the opportunities, difficulties, and possible legal repercussions
of this circumstance using a framework based on ethics and law. A code of conduct should be
implemented to reinforce the hospital's ethical framework, as the article also addresses the significance of
ethical leadership.

Analysis of the Problem

The basic right of workers at Andalusia Hospital to receive just recompense for their labor is violated by
the hospital's tardiness in making payments. From the utilitarian perspective, which prioritizes increasing
well-being for everyone, this ethical transgression may be examined (Byras et al, 2023). Employees
experience difficulty when payments are delayed, which may result in stress, low morale, and financial
issues. At the end of the day, this hurts the hospital as well as the personnel since unhappy employees
could offer worse treatment or look for other jobs.
In addition, failure to pay workers what is owed to them violates labor rules in Saudi Arabia. Wages
ought to be paid in whole and on time, according to Article 38 of the Labor Law of the Kingdom. The
hospital was hit with penalties and legal action for noncompliance (Longe,2023).

Challenges and Opportunities

Andalusia Hospital faces serious obstacles as a result of the late payments. This can result in lower patient
satisfaction, more personnel turnover, and reputational harm due to the detrimental effects on morale and
productivity. The hospital's financial stability may be negatively impacted by several variables (Byars,
2023).

All the same, this circumstance offers the institution a chance to fortify its code of ethics. Andalusia
Hospital may show that it is committed to moral business conduct by addressing the problem openly and
implementing the necessary remedies. In addition to boosting morale and the hospital's reputation, this
can help restore staff confidence (Plante, 2016).

Ethical Leadership and Risk Mitigation

In order to handle this issue, strong ethical leadership is essential. The leadership group of the hospital
needs to put employee welfare first and make sure labor rules are followed. This calls for the creation of
explicit regulations and processes, dedication to prompt payments, and open communication with the
workforce (Darby,2023).
The hospital runs the danger of legal action if compensation is not paid. By abiding by labor regulations,
putting in place a mechanism for prompt payments, and providing employees with a clear grievance
procedure to resolve payment concerns, these risks can be reduced. A strong code of conduct can also act
as a manual for moral behavior inside the company (Villirlli, 2021).

Code of Conduct Recommendation

One serious ethical issue is the lack of a code of conduct. The hospital's basic beliefs, such as its
dedication to treating employees fairly and abiding by labor regulations, would be outlined in a well-
defined code. Additionally, it ought to clearly outline standards for moral conduct from all employees,
especially the leadership. All staff members should have easy access to the code of conduct, and it should
be periodically evaluated to make sure it remains effective (Everfi, 2023).

Conclusion

There might be serious consequences for Andalusia Hospital's unethical failure to pay employees on time.
The hospital may reduce legal risks, enhance employee relations, and fortify its overall ethical framework
by emphasizing ethical decision-making, developing ethical leadership, and putting a code of conduct into
practice.

References

Byars, S. M., & Stanberry, K. (2023). Business ethics. OpenStax.

Darby, J. (2023, May 14). What is Ethical Leadership? Attributes, Traits and Examples. Thomas.

Everfi. (2023). Code of Conduct from 4 of the Biggest Companies. https://everfi.com/blog/workplace-


training/4-of-the-best-company-code-of-conduct-examples/

Human Resources and Social Development Ministry. (2023). Labor Law.


https://www.hrsd.gov.sa/sites/default/files/2017-05/LABOR%20LAW.pdf

Kouchaki, M., & Smith, I. (2022, January 5). 5 Research-Backed Strategies for Building an Ethical
Culture at Work. KelloggInsight.

Longe, B. (2023, July 27). 23 Ethical and Unethical Behavior Examples in the Workplace. Formplus.

Plante, T.G. (2016, August 8). 5 Ways to Create a Culture of Ethics. Santa Clara University.

Villirlli, G. (2021, April 9). The importance of being an ethical leader and how to become one. BetterUp.

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