Four Cases in Business Ethics - Case Study Example

Name Course Instructor Date Business Ethics Something’s Rotten in Hondo. Firstly, the headquarters refusal to invest in acquiring new smokestack scrubbers for the company is an ethical issue that is facing the company at the moment. The fact that the company has problem with the EPA and is already paying fine for polluting the environment with its activities, evidently proves this ethical issue. Bill goes the limit of even admitting that they were at their limits as much as the issue needed to be given a first priority. Another ethical issue at is clearly seen in the company is when Bill declare that the Mexico government has assured the company that it will observe no air restriction if it relocates its operation to the Mexican side. In addition, the company was also to employ Mexican workers. For the first issue, one thing that the plant would do is to create efforts to establish its own budget in order to be able to prioritize the need of having new smokestack scrubbers. Actually, it should be placed at the top list of the budget of the Hondo plant. Another alternative to the first issue is that the Plant Manager can notify the authority of the issue. EPA will be able to push the headquarters to react to the situation at hand. For the second ethical issue, it is more ethical for the Plant Manager should not relocate as expenses incurred would be more than that of getting new smokestack scrubbers. The other alternative is that he should correct the mistakes rather than incur more expenses in training new workers and increasing air pollution. Accepting one mistake and later correcting it is considered to be ethical. In the first issue, in applying the consequentialist theory, the alternative of the company of carrying out its own budget will see to it that the companies follow the EPA guidelines. Therefore, the consequences of maintaining the required guidelines, justifies the action. As the theory of non-consequentialist states all the factors are relevant, this alternative is relevant to the situation at hand. It is also an obligation to the Plant Manager. The manager being a bright person, as a virtue according to virtues based theory, is expected to come up with this budget prioritizing the need of new scrubbers. Applying the theories to justify the second alternatives, in notify the authority, will have positive effects as the consequences will benefit all the stakeholders and the alternative is relevant as the EPA establishes the guidelines to be followed. In addition, in addition, EPA, having the virtues of maintaining a clean environment, will perform appropriately. In the second issue, the first alternative, the action of not relocating does justifies the consequences of not incurring more expenses, the action is also relevant as in spite of it being an obligation, its one the factor that is most appropriately to ensure the company does not go off limits. The company will also be more productive at the present location. In the second alternative, when the manager corrects the mistakes, will be a relevant factor as the consequences will be justified. This is because it will assist in reducing the pollution which could be felt in the area that was proposed to relocate to. In addition, the workers who have a virtue of experience will aid in increasing production. The best solution for the company is to utilize the money that may be planned for relocation, to buy new smokestack scrubbers. This will assist the company to maintain the EPA guidelines and also reduce pollution and reduce the fines. In addition, the Plant Manager will not be blamed for the loss of jobs that will affect the workers and the extended families. As much as the Mexican government assure of no air restrictions, probability of the environmentalist raising an alarm over the pollution issue, the company will then find itself in another problem. The Curious Loan Approval For every bank, ethical issues are often felt the running of its activities. In this case, the bank is having issues in the Department of loans which requires attention. The first ethical issue illustrated in this case, is the fact that the Commercial Loan Officer at the bank does not follow the procedures, even with the knowledge that the firm was operating with leases. Also the fact that she deliberately removed the memorandum from the firm files when the loan is approved by the bank’s senior credit committee. This is worsened by the fact that she does bring up the issue during the credit committee meeting. The second issue evident in this case when Commercial Loan Manager receives special treatment in her personal mortgage loan application at Bay Street Savings and Loans. This is corruption as the Chairman of the Bay Street firm was also the chairman of the firm that was In the first scenario, the Financial Analyst should have taken the memorandum to the credit committee rather than destroying it when he realized the case was handled improperly. The second alternative would be to notify the senior credit committee of his suspicions. In the second issue, the Financial Analyst could confirm his suspicions before taking any actions; this would reduce any negative consequences directed to him. The second alternative would be to confront her. In the first alternative, taking the memorandum to the credit committee will result to justifiable consequences. This is appropriate as the committee will first verify the situation before undertaking any action. In addition the committee is the final stage in the process of loan approval in the banks. Not only is it an obligation to ensure that the bank policies and regulation are adhered to, it is also a relevant factor in this situation. The fact that she is boss does not have to undermine or threaten the Financial Analyst’s actions. Applying theory in the second alternative, which is, notifying the senior credit committee who will ensure that the relegations are looked into before signing, will result to the right decision in the situation. Being the person authorizing loans to be given, he will see to it the right protocol is followed and it is one relevant factor to ensure that the regulation and policies in the bank are followed. It is also an obligation for the senior credit committee to see to it that the firm measure up to the standard of obtaining the loan (Sunita, p.122). In the first alternative of the second issue, confirmation of his suspicions will ensure that the any actions, after the investigation are viable. It is one of the relevant actions to make sure that he has reliable sources in case of defaults. Reliable evidence will form a base of or perform the initiative of interrogation to the case. In the second alternative, as the theory of consequentiality states all action are justifiable if the consequences are positive, confrontation will ensure that the he clears his mind on any suspicions. This is one of the relevant factors bearing in mind that he considered her as a mentor. The best action for this case is for the Financial Analyst may report his suspicions to the relevant authority. However, he should treat the matter with much care as the Commercial Loan Officer is one of the outstanding employees of the bank. In addition, he would also risk losing his job if these relegations were proved not to be true. Apart, from that, the firm would also create a negative image and may not be able to reclaim its heavily earned glory. Although, coming up with solid evidences would increase the chances of presenting a case that he is well informed. To Spray or Not to Spray Case Study (Product (Harmful Ecological Impact)) It is important that every business engages in practices that are not harmful to the environment. Organizations that are considered to be environmental conscience are known to be involved largely in practicing outlined business ethics. Based on the first issue, Crocodile Cleansers are faced with a major task of deciding on whether to develop a new stain remover in form of an aerosol spray and which is harmful to the environment as a way of being competitive or, to keep on producing the stain remover in liquid form to safe guard the environment. Hydrocarbons that are found in aerosol sprays largely contribute to ozone depletion. During stagnant air and period of excess heat, ozone level rise. Using hydrocarbon spray irritates respiratory system which in turn causes respiratory diseases. The second issues given an indication that, it is very unethical if a company engage in activities that will limit people movement which is as a result of ozone depletion. The other unethical issue that arises from this case study was the fact that the company product manager decides to conduct a study test on consumer attitude towards the use of aerosol spray. Robert had an idea of how harmful aerosol sprays are towards the environment. There are various alternative solutions in which Crocodile Cleanser could have handled this situation. For the first issue, the company could have engaged the customers through educating them on dangers involved in using aerosol spray. By so doing, customer would be able to adapt the liquid form stain remover as compared to spray which in turn could have enabled the company make more sales thus creating a competitive advantage. The other alternative is for the company need to engage in testing the two products both in liquid and aerosol spray so as to give the customer the real idea of why the company is engaged in using liquid form instead of aerosol spray. On the second ethical issue, it is important for Robert to appeal customer concern for both the environment and health. Also, it is important to create brand loyalty with the liquid stain remover as a way of engaging in ethical activities towards increasing their sales. Clearly, utilitarianism will be considered to be the prevalent form of Consequentialism in this case. Consequentialism is considered to be the overall term for various moral theories which usually states the wrongness and rightness of a particular action based on result produced by such action (Anand and Rosen, P.97). From Consequentialism theory, Robert needs to understand that all his conduct is the basis for any form of judgment about the correctness of such a particular conduct. In this case, utilitarian approaches this particular ethical dilemma by systematically identify the key players in a given situation as well as various consequences of particular actions. According to Anand and Rosen (P.97), non consequential theories here may not be useful as they tend to totally ignore consequences in assessing what is right and that which is wrong. Further, non Consequentialism theory does not create an immediate appeal to either harmful or beneficial consequences in determining good or bad (Anand and Rosen, P.97). The best action to be taken in this ethical dilemma is for the company to engage in educating customers on the dangers of using aerosol sprays. Customer need to purchase goods that are not a hazard to both their health and environment. Crocodile Cleanser needs to create awareness programs that will educate customer on the dangers involved while using spray that consist hydrocarbons. Robert should not use any brand of aerosol spray from other companies as this will be going against rules and regulation on negative publicity in attracting competitive advantage. Today, customers are involved in purchasing commodities not only safe to their health but also to the environment as well. Through engaging in massive awareness campaigns on environmental friendliness, the company will be able to woe customer to continue purchasing Ab-Stain in its liquid form through a more business ethical practice. Might Makes Right (Taking Credit for Work) Every company is guarded by intellectual property law. Within this law there is the copyright law which is known to protect original “works of authorship”. In this case the first issue against business ethics will arise if Janice was to present John’s program to her boss and pass it as her own. It is important that Janice understand that John is protected by copy right law. Presenting John’s program to her boss will undermine her position since he should recommend John to her boss for a job well done. Secondly, it is unethical for Janice to use John creative software packages that is perceived to address major concern within the company to cover up for her inability to hand in the program within given time limits. Employee engagement requires promotion of junior employees who have gone beyond their job descriptions to ensure good performance of the company. There are various alternatives methods that Janice could follow to ensure she has not breach designed business ethics. Based on the first issue, Janice should recommend John to her boss on his ability to design an effective and creative software package which will address major issues within the company. Secondly, Janice should not blackmail John on the basis of losing his job should he refuse to allow Janice to present her program. It is John hope that his creation will bring him much needed promotion and raise therefore Janice should use this opportunity to motivate John through rewarding him for his good work. Based on the second issue, with pressures arising from her position, Janice should communicate with her boss that she needs assistance so as to complete the work issued within the given timeframes. Secondly, Janice should realize that giving john a raise and a promotion should merely come from John’s hard work as opposed to rewarding him for accepting her present his piece of work to her boss. For the above alternatives, there are various ethical theories that support these alternatives. Using Consequentialism theory, our judgment for the various alternatives enables us to look to the results of various actions in determining the falsity or truth of moral judgment in regard to Janice and John’s case (Murphey and Laczniak P.45). It indicates that if an action is followed and as a result creates a balance of benefit then the action is good. For instance, recognizing John work through giving him a promotion is good even when his piece work is presented to her boss. However, the theory indicates that if the outcome balances harmfully, the cation is wrong. For instance, if Janice decides to use John work without promoting him that is wrong. Here, using non-Consequentialism theories both on ethics of duties and those of rights and justice need to be used. Ethics of duties initialize with assignation of duty so as to act in a certain way where human dignity should never be undermine. Reward needs to be given to employees who perform satisfactory in accordance to duties assigned. It is important to test whether all actions within an organization or even a department are acceptable to all human beings. Finally, virtual based theory is mainly concerned with pursuing of what is morally inclusive excellence. Janice need to realize that moral life does not only depends on set rules and regulation but also with great ability to ensure that she is able to exercise sound moral judgment which nature both her and Johns virtues (Murphey and Laczniak, P.54). The best alternative action that needed to be taken by Janice is recommending John’s work to her boss. By so doing, both Janice and John will be on a beneficial balance using the Consequentialism theory in that Janice will be able to find assistance from the various pressures of her position whereas John will be promoted to a higher position due his creative work. Work Cited Murphey, P and Laczniak, R et al. "An ethical basis for relationship marketing: a virtue ethics perspective". European Journal of Marketing 41: 37–57. 2007. Print Anand, V and Rosen, C. "The Ethics of Organizational Secrets". Journal of Management Inquiry 17 (2): 97. 2007. Print Read More