Unethical Business Conduct of the CEO of Gravity Payment

Dan Price and Gravity Payment Company
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Dan Price and Gravity Payment Company
Leadership is a crucial concept in contemporary society. Through leadership, employees can execute their duties correctly (Caulfield et al., 2021, p. 736). Poor leadership can cause a lot of destruction, leading to many nurses and distrust between the top management and the employees. On the other hand, poor leadership can taint the business image that can scare potential clients and investors. Many leaders or managers have committed several unethical business activities.
These issues have led to the closure of business organizations and losses, reducing the profit margin. Some malicious can take advantage of their power and influence minor distressed employees, and they can also engage in conning the organization for personal benefits. Such issues lead to bitterness between employees and top management, resulting in strikes and chaos (Shapira, 2019, p. 2). Leaders should not make employees think they are exploited to benefit the few individuals. With close relation to the above analysis, the paper discussed the unethical business conduct committed by Dan Price in his company and assessed his motive by applying egoism theory. On the other hand, the consequences of his action are also articulated in the paper.
Dan Price
Dan Price is the primary founder of Gravity Payments Company. The Organization processes credits for various clients who need to pay their bills through credit cards. Dan Price came into the limelight in 2015 when he increased the minimum salary of his workforce to 70000 US dollars (Lynne, 2020, p. 258). The employees received the news well, terming it a good idea to raise their welfare and motivation. Similarly, he extended the olive branch to employees of ChargePro. Previously, Dan Price, through his company, had acquired several companies with ChargeltPro included. Gravity Payments earned a lot of recognition based on the positive employee reviews and high motivation witnessed in the workforce. The increased productivity in employees is attributed to the comprehensive numeration system established by the company.
Ethical Issue
The year 2015 became stressful to Dan Price and his company when his brother Lucas accused Dan Price of violating his rights as a minority shareholder and breaching their business contracts. Interestingly, Lucas Price sued his brother 11 days after Dan price had announced the pay rise for employees (Scott & Kenman, 2018, p. 16). According to their business contract, both brothers founded the company, and Dan was appointed to become the CEO, and Lucas was appointed to play a minority interest in the company. Furthermore, the brother signed a business contract protecting the rights of Lucas as a minority leader and restricting the compensation of Dan Price as the CEO.
Lucan accused his brother of abusing his role as the CEO by secretly paying himself a lot of money. It was established that Dan Price had been paying himself almost one million US dollars monthly before announcing to increase in employee salaries. He concealed the Information from Lucas and the company in general (Scott & Kenman, 2018, p. 17). Dan claimed that Lucas failed to fear executive reimbursement or his proprietorship benefits as the Gravity Payments manager. Lucas failed that Dan ought to have informed about his motives and business motives because he has shares in the company.
The mismanagement of funds noticed in Dan's case tainted the reputation of Gravity Payments Company. For example, most clients viewed the company as ungrateful and unfair to their employees. The Information is true. Dan price exploited the employees working hard to ensure the organization enjoyed maximum profits (de Cremer, 2015, p. 39). He failed to inform Luca Price though he played minor functions. He deserved to know the Information because he is a co-partner. The disagreement between Lucas and Dan communicated that Dan used the funds illegally for his interest. His final decision to increase employee salary by 70000 and reduce his indicates that he has exploited the organization until satisfied.
Furthermore, Dan Price defended himself by stating that his decision to increase employees' salaries was not for business reasons but to attain the business vision. Dan Price expressed poor managerial skills, such as taking matters into his own without informing the crucial stakeholders of the organization. On the other hand, he has been awarding himself lucrative business deals and heavy salaries discreetly.
Perceived Motivation
Egoism is divided into psychological, rational, and ethical. Individuals with physiological egoism are more interested in themselves and are satisfied after their desires are fulfilled. On the other hand, individuals with psychological egoism perceive that ...