Discrimination is when a group
of people are not given the same treatment as another group of people. Discrimination
raises an ethical issue because Geico is denying their services to members of
society because of economic status. No one should be denied services based on
any condition, from skin color, to race, or economic status. Everyone should be
treated fairly. Discrimination is an issue that the U.S. had supposedly solved
during the time of Rosa Parks, etc. However, as we can see, we still are seeing
the issue of discrimination in our society today. As a society, we should not go backward in
time and forget how hard people had fought for these freedoms. We need to press forward so our society can
grow and evolve. By disallowing members of society certain rights, we are
inhibiting not only their growth but our growth as a whole.
Geico did not handle this
situation well. Geico should not be discriminating against their customers on
the basis of not having a job, being single, etc. Geico should have offered the
minimum priced policy at least to their low income customers. Also, Geico could
have also developed monthly payment plans for low income families to be able to
pay for insurance. Using both lower premium and monthly payment method, not
only assists the consumer but it provides ease for the organization knowing
that they will be paid.
We will be analyzing Geico’s
actions using two ethical theories, they are Ethical Egoism and Utilitarian
theory. Geico’s behavior illustrates the ethical theory of egoism. Ethical Egoism is when people claim that
something is ethical when they pursue self-interest (Arnold,
Beauchamp, & Bowie, 2012) . Geico pursued
self-interest by choosing to discriminate against members to make sure they
will get receive higher profits. Geico should have considered utilizing the Utilitarian
ethical theory. In contrast to Ethical Egoism, Utilitarian ethical theory is
when someone considers an action ethical when it benefits the most people (Arnold,
Beauchamp, & Bowie, 2012) . The Utilitarian
ethical theory could in the long run help Geico develop long lasting
relationships and achieve a high level of trust with consumers.
Next, we will be examining
Geico’s decision choices in relation to the Book, Beyond Integrity. Rae and Wong discuss two sets of rules that a
person has. The two sets of rules which refer to a person’s ethical code state
that a person acts differently in the business world than at home (Rae &
Wong, 1996) .
Using the two rule approach, Geico demonstrates unethical conduct in the
business world but probably outside of the workplace Geico employees will
showcase better socially acceptable moral conduct. Another aspect of Beyond
Integrity that we will be looking at is seeing the business world as a poker
game. Rae and Wong state that business actions are just a game of poker. In a
poker game, bluffing is not considered a bad thing ,just part of the game
strategy. Geico seems to view discrimination as a strategy in their game
because by excluding low-income families; their chances of winning will
increase dramatically.
In conclusion, Geico actions
displayed poor ethical conduct. Discrimination should not be seen in the
business world. Geico is telling members
of society that discrimination is acceptable. Through the Ethical Egoism
perspective, we saw that Geico is seen as ethical in the sense that they
pursued their own interests. On the other side of the spectrum, is the
Utilitarian theory which if utilized by Geico, we would have seen Geico making
decisions that better benefited a majority of people. Our question now is how
does Geico view themselves? Do they see business as a poker game? Or do they
possess two sets of rules?
Lobosco, K. (2015, February 13). Geico Accused of
Discriminating Against Low-Income Drivers. Retrieved from CNN:
http://money.cnn.com/2015/02/13/pf/insurance/geico-discriminating/index.html
Rae, S. B., & Wong, K. L. (1996). Beyond
Integrity. Grand Rapids: Zondervan.
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