Business Ethics Case Study

Introduction

Maintaining business ethics is a very important aspect in success of any business organization. The ethical principles define the general acceptable behaviors expected in an organizational setting. Decision making process should be guided by these principles and should also be the basis of judgment making. Ethical standards in business must ensure that the interests if all the players in the sector are considered. However, some greedy entrepreneurs sacrifice their ethics in order to gain their selfish interests as evidenced in the case study.

Possible ethical pitfalls

From the case study, it is clear that there is a sale agreement between XYZ and ABC. The agreement between the selling and the buying party is on a willing seller and willing buyer. However, after the two parties have agreed on the product’s quantity and price, ABCC decides to change on the material used to make the parts. ABC engineer Christine Carsten determines there is a cheaper alloy that can be used to make the parts.  Even though the parts will serve the same purpose that XYZ intends to fulfill, Christine admits that the parts will be less durable and its integrity will also be substantially compromised (Moaveni & Sharma, 2011).

Vernon Waller, who authorized the sales agreement with XYZ, is brought to the attention of the cheaper alloy and authorizes the engineer to go ahead with producing the parts. This forms unethical pitfalls since it compromises ethics in marketing. Honesty must be upheld while dealing with customers. Sincerity in terms of validity, quality and price of the products should be maintained in a contractual sale. Christine tries to convince Vernon the importance of letting XYZ on the changes made but Vernon is adamant that since the parts will offer customer satisfaction and it is not easy to detect and thus ABC should move on and sell the parts. This is highly unethical since Vernon fails to be honest with XYZ and sells low quality to product to maximize on profits.

The way out of the ethical dilemma

From the case study, it is clear that ABC engineer is faced with ethical dilemma.  According to ethics and professional practice, she is expected to deliver quality products that will be crucial to protect the image of the company and fulfill customer’s desire. It is for this reason that ethical theories would be essential in getting out of this dilemma. Christine has to make a major decision on whether to fulfill the wish of Vernon or the wish of XYZ.

In this case study, deontology ethical theory is expected to produce the best solution to this ethical dilemma. This is an ethical theory that is based on duties, rights and respects at the end of task. Deontology theory is mainly concerned with the intentions of the individual in question as governed by the rules and obligations in the line of duty.  Deontology theory requires that the affected party should act in adherence to the obligations and by so doing is considered to be acting ethically. This theory is embedded in a principle of fulfilling duties towards self or other persons. It is required that one should choose the best action which conforms to the professional recognized duties (Bredeson & Goree, (2012).

In this case, Christine Carsten can get out of this dilemma by employing the deontology theory of ethics.  Christene is an engineer in ABC and must fulfill her duties as enshrined in the job description. Even though she is aware that the cheaper alloy will produce less durable parts and will be extortionist to XYZ, Christine is obliged to ensure that the custom parts are produced (Moaveni & Sharma, 2011). The ABC Company will reduce its cost by $ 18 per part and since Christine is not involved with the client, the production process must be carried out. Christine will be covered by the fact that XYZ will not be able to differentiate between the normal parts and the parts made from the new and cheap alloy. Christine will produce parts that will serve the consumer needs and fulfill her duties as the company’s engineer.

Ethics in work place

Work place ethics is very important in sustaining organizational goals and objectives.  Highest ethical standards should be maintained at all costs. This refers to situations whereby the people in a certain work place always do the right thing even as the wrong thing seems to be very much attractive. In most cases, work place ethics is concerned with making major decisions within the organizational set up. It is a very important aspect since in most cases, work places are faced with competing priorities for business and ethics prove vital in the overall success of the organization.

Maintaining high ethical standards in a work place would be a very important step in ensuring that ethical dilemmas are a thing of the past. High ethical standards in a work place are also important in ensuring increased brand loyalty and increased profits are realized within an organizational set up.  The most critical aspects in the work place ethics revolves around integrity, accountability, commitment and team work (Johnson, 2007).

In this case study, failure to cultivate a good ethical culture in the ABC has been the critical cause to the ethical dilemma in the case. The high indication of lack of ethical culture in this work place can be exhibited by the actions of Vernon.  Vernon was the one involved in the agreement with XYZ and knew exactly what XYZ wanted. However, after understanding that Christine had discovered a cheaper alloy for the same products, Vernon exhibits high levels of dishonesty. Lack of integrity in this work place has made ABC to concentrate on the $ 18 per part that they will save at the expense of XYZ.  If Vernon was a person of integrity just like Christine, this dilemma could have easily been avoided.

Professional ethics and corporate social responsibility

Professional ethics should be incorporated with corporate social responsibility for the overall success of an organization. Different professions have different professional ethics upon which the personnel in such professional fields. In this case, Christine Carsten as a professional engineer has the responsibility to use the professional code of ethics and corporate social responsibility to get out of the current ethical dilemma.

The engineering profession is governed by several fundamental principles and codes of ethics. For instance, engineers are expected to use their skills to promote human welfare, to be honest and impartial, strive for competence among other principles.  The engineers are also expected to enhance the professions’ reputation based on merit of their services even as they uphold honor, integrity and dignity in the course of their duty. On the other hand, corporate social responsibility is concerned with improving the welfare of the community within which the organization operates (Wueste, 2004).

In this case study, Christine could pave her way out of this dilemma by applying the engineering responsibility and corporate social responsibility. In getting out of this dilemma, Christine should consider acting according to the provisions of her career responsibility. For instance, Christine is obliged to promote human welfare, promote honesty, competence and integrity in course of duty. The reputation of the engineering profession must also be maintained and upheld at all costs.

It is for this reason that Christine can apply such idea in an attempt to get out of this dilemma. After analysis and in pursuit of achieving engineering responsibility, Christine should ignore the calls by Vernon of proceeding to produce the low quality parts. This is because they will put the engineering profession at stake (Davis, 2002). The welfare of the consumers will also be compromised if Christine goes ahead and produce the low quality custom parts. Failure to provide high quality products will also be detrimental to the ABCs corporate social responsibility programs. In order to have an effective program on corporate social responsibility, the consumers and the community must embrace the products associated with the company.

 

References

Bredeson, D., & Goree, K. (2012). Ethics in the workplace (3rd ed.). Mason, OH: South-Western/Cengage Learning.

Davis, M. (2002). Profession, code, and ethics. Aldershot, Hants, England: Ashgate.

Hansson, S. O. (2005). The ethics of workplace privacy. Brussels: PIE-Peter Lang.

Johnson, C. E. (2007). Ethics in the workplace: tools and tactics for organizational transformation. Thousand Oaks, Calif.: SAGE Publications.

Moaveni, S., & Sharma, I. (2011). Engineering fundamentals: an introduction to engineering (4th ed.). Stamford, CT: Cengage Learning.

Wueste, D. E. (2004). Professional ethics and social responsibility. Lanham, Md.: Rowman and Littlefield Publishers.

 

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