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Case study: Ethics, dealing with stakeholders.

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Dr. DoRight has recently been hired as the President of the "Universal Human Care Hospital", where he oversees all departments with over 5,000 employees and over 20,000 patients at the medical facility. He has been provided with a broad set of duties and oversight of numerous departments, including business development, customer services, human resources, legal and patient advocacy, to name a few. He has managers in each department that he supervises and who work with him to address the needs of the various internal and external stakeholders of the hospital. Dr. DoRight discovers that some patients within the hospital have been dying as a result of a variety of illegal procedures by doctors and nurses, and negligent supervision and oversight on their part. This was brought to his attention in a few meetings and he told his Regional Director Compliance Manager and Executive Committee in January 2009. He was told by them that the matter would be investigated and they would report any findings to him as soon as possible. After two years, there have been no results from the investigation and some patients are still passing away due to the negligent activities. He also answers to a board of trustees and interfaces with numerous community organizations and corporations who have various reasons for doing business with the hospital. Dr. DoRight continues to win awards for his leadership of the hospital and meeting business goals. He was recently named "Medical Business Executive of the Year" in 2011.

1. Determine at least three different internal and external stakeholders that Dr. DoRight might have to deal with on a daily basis at the hospital.

2 .Compare and contrast potential conflicts of interest that may exist between the internal and external stakeholders.

3. Discuss whether Dr. DoRight has fulfilled his ethical duty by reporting the illegal procedures. Describe the deontology principle and apply it to the ethical dilemma that Dr. DoRight faces in this case.

4. Describe the utilitarianism principle and apply it to the ethical dilemma Dr. Do Right faces in this case.

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1. Internal stakeholders of the hospital include the owners or shareholders, employees and vendors of the hospital. External stakeholders include the society or general public in the vicinity of the hospital, government, media and press and non-profit organizations working in the healthcare field.

2. The internal stakeholders, such as owner's and shareholder's, primary motive is to maximize return on their investments whereas external stakeholders such as government, regulatory authorities, etc. wish to maximize welfare for the society and community. Hence, conflict of interests can exist between the goals and objectives of internal and external stakeholders.

For example, the internal stakeholders will be more interested in cost savings and profit maximization and would not be interested in preventing environmental pollution, whereas external stakeholders would ...

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Sandeep Bardia, MBA
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  • MBA, Rochester Institute of Technology
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