Discrimination & conflicts of interest analysis môn Business ethics | Đại học kinh tế Quốc dân

lOMoAR cPSD| 58511332
1. "White-shirt" company (Discrimination): One of your best customers is a very conservative
organization -- a real "white-shirt" company. Reporting to you is David, a very talented
AfricanAmerican who could benefit greatly from working with this customer account -- and the
customer account would benefit greatly from David's expertise and creativity. The issue is that
David dresses in vibrant colors and wears a kufi, an African skull cap. Your company long ago
recognized David's brilliance, and his dress within the company isn't an issue. But you know your
customer would react to David's attire with raised eyebrows. Name the issue What would you do?
Cost and benefit of your choice The primary ethical Open Dialogue: I Cost: issue in this case is would have an open The conversation could be discrimination. The and honest uncomfortable and potentially conservative conversation with
strain the relationship between organization's potential David about the you and David if not handled reaction to David's situation. I would
delicately. It might also lead to attire suggests a bias explain the customer’s David feeling singled out or against his cultural conservative nature unfairly treated. identity and personal and potential reaction expression. to his attire without
Advocating for a policy change Discrimination based making it seem like he could require a significant on race, ethnicity, or needs to change who
amount of time and effort. There cultural background he is. might also be resistance from violates ethical other members of the principles and organization. undermines workplace Company Policy diversity and inclusion Benefits: Review: If the efforts. The conversation could company doesn’t
strengthen the relationship with already have one, I David by demonstrating the would advocate for a support for his cultural clear policy on
expression. It could also give discrimination and
David the opportunity to voice diversity. This policy
his thoughts and feelings, and should protect potentially come up with a
solution that he is comfortable employees like David with. from being discriminated against
A clear policy on discrimination based on their personal and diversity could protect style or cultural
employees like David and foster identity. a more inclusive workplace culture. This could improve employee morale and productivity and enhance the company’s reputation.
2. Appearance Manager (Discrimination) You're planning to hire a new sales manager and one of
the leading candidates is really homely. You are concerned about how your customers – and even lOMoAR cPSD| 58511332
his colleagues -- would react to him. The specific job he's applying for requires extensive customer
contact and his appearance is frankly disconcerting. On the other hand, his credentials are excellent
and he's certainly qualified for the job. Name the issue What would you do?
Cost and benefit of your choice Discrimination: This Hire the candidate Costs: involves treating based on his Initial Discomfort: Some people unfairly based qualifications and customers and colleagues may on their membership of ignore his appearance.
initially react negatively to the a particular group. In
candidate’s appearance, which this case, the concern could temporarily affect about hiring the interactions and perceptions. candidate due to his Adjustment Period: There may appearance is a form
be a period of adjustment where of discrimination.
the candidate has to prove their abilities and overcome any biases or preconceptions held by others. Benefits:
Talent Acquisition: You gain a highly qualified employee whose credentials indicate
strong potential to succeed in
the role and contribute to the company’s objectives. Positive Reputation: Demonstrating a commitment to
equal opportunity and meritbased
hiring enhances the company’s reputation as a fair and progressive employer. Employee Morale: Fair hiring
practices reinforce a culture of
integrity and respect, boosting overall employee morale and loyalty.
3. Apply to university (Conflicts of Interest): Your daughter is applying to a prestigious university.
Since admission to the school is difficult, your daughter has planned the process carefully. She has
consistently achieved high marks, taken preparatory courses for entrance exams, and has
participated in various extracurricular activities. When you tell one of your best customers about
her activities, he offers to write her a letter of recommendation. He's an alumnus of the school and
is one of its most active fund raisers. Although he's a customer, you also regularly play golf
together and your families have socialized together on occasion. lOMoAR cPSD| 58511332 Name the issue What would you do?
Cost and benefit of your choice Conflicts of Interest: Polite decline If I Benefits: This occurs when a were in this situation, person’s personal I would thank the Avoidance of ethical concerns interests potentially customer for his offer and conflicts of interest. interfere with their but politely decline.
Maintaining the integrity of the professional Instead, I would university admission process. Demonstrating a commitment to obligations or duties. encourage my fairness and impartiality. This can create a daughter to seek situation where the recommendation Costs: individual may make letters from
Potentially missing out on the decisions based on individuals who can
benefits that a strong letter of personal gain rather speak directly to her recommendation from a than what is best for academic and wellconnected alumnus could the organization or extracurricular bring. The daughter's other stakeholders. In achievements, such as
application might not stand out this case, the conflict of teachers or coaches.
as much compared to those with interest arises from the
strong recommendation letters. fact that the customer, who is also a friend and an alumnus of the university, offers to write a recommendation letter for your daughter. This could potentially influence the admissions process due to his status as a fundraiser for the university.
4. Big Holding (Discrimination) After two years of complex negotiations and hand-holding, your
bank has finally signed Big Holding Co. as a client. Big Holding has three main divisions: a
chemicals business in Louisiana, a heavy equipment division outside of Cleveland, and an
agricultural business in Iowa. Since the business is so enormous, you assign three junior employees
to the company -- one employee per division. Jim Patterson, a talented chemical engineer, will
head effort for the chemicals business. When you and your three employees meet with the senior
management team from Big Holding to plot long-term strategy, the Chief
Financial Officer pulls you aside to chat. "You shouldn't send Jim to Louisiana," he says. "There
have been numerous violent incidents there involving people of his race, and I would be afraid for
his safety. Why don't you assign him to one of the other divisions, and send someone else down South?" Name the issue What would you do?
Cost and benefit of your choice lOMoAR cPSD| 58511332 Discrimination: This Action 1: Discuss the Cost involves treating CFO’s concerns with Potential Safety Risk: people unfairly based Jim and allow him to If Jim decides to go to on their membership make the decision. Louisiana, there remains a in a particular group. potential risk to his safety, In this case, the CFO’s which could result in harm to suggestion to not send
him and reputational damage to Jim to Louisiana the company if an incident occurs. because of his race is a Client Relationship Tension: form of Overruling the CFO’s advice discrimination. might strain the relationship with Big Holding, potentially affecting future collaboration and trust. Benefit Empowerment and Respect: Discussing the concerns with Jim shows respect for his autonomy and professional judgment, empowering him to make an informed decision
about his own safety and career. Transparency and Trust: This
approach fosters a transparent and trusting work environment, reinforcing a culture of open communication and mutual respect. lOMoAR cPSD| 58511332
5. Big Oil not like work with women (Discrimination): After two years of sales calls and
persuasion, a large, multi-national petroleum company -- Big Oil Ltd. -- decides to sign with your
employer, Secure Bank. Since Big Oil is headquartered in Saudi Arabia and most of the meetings
with the client have been in the Middle East, Secure Bank's senior executive in charge of oil and
oil products companies -- Julie -- has not attended. Although the Secure Bank employees who have
met with the company have told the Big Oil executives that the lead on their account will be a
woman, the news must not have registered, perhaps because of language difficulties. Today the
Big Oil reps are in Chicago to sign on the dotted line and meet with Secure Bank's senior managers,
and of course, they've met with Julie. A member of the original Secure Bank sales team calls you
to say that Big Oil's senior team member has told him he does not want Julie to work on their
account, period. Because of cultural issues, Big Oil execs are uncomfortable dealing with women from any country. Name the issue What would you do? Discrimination: Big Oil's
Approach Big Oil's senior team member to address their refusal to work with Julie
concerns and educate them about the importance of diversity solely based on her gender
and inclusion in the workplace constitutes gender discrimination. By
If Big Oil continues to insist on not working with Julie, involve expressing discomfort
higher management and legal counsel. They can provide dealing with women from
guidance on how to handle this situation while adhering to anti-
any country due to cultural discrimination laws and policies. issues, they are engaging in discriminatory behavior that violates principles of equality and fairness in the workplace.
Cost and benefit of your choice Costs:
- Potential Loss of Business: If Big Oil decides to withdraw their business due to Secure
Bank’s stance on non-discrimination, this could result in a significant financial loss.
The exact amount would depend on the size and duration of the contract with Big Oil.
- Implementing alternative solutions may require reallocating resources and potentially
disrupting existing workflows. It could also lead to tension within the sales team and affect
morale if Julie feels sidelined or undervalued. Benefits:
- Upholding Ethical Standards: By standing against discrimination, Secure Bank reinforces
its commitment to ethical business practices. This can enhance its reputation among
stakeholders who value corporate social responsibility.
- Legal Compliance: By adhering to anti-discrimination laws and policies, Secure Bank
avoids potential legal penalties and the associated financial and reputational costs. lOMoAR cPSD| 58511332
- Potential New Business: Taking a strong stand on non-discrimination could attract new
clients who value diversity and equality.
6. Bottled water campaign crisis (an angry worker): As a bottler of natural spring water, your
advertising department has recently launched a campaign that emphasizes the purity of your
product. The industry is highly competitive, and your organization has been badly hurt by a lengthy
strike of unionized employees. The strike seriously disrupted production and distribution, and it
caused your company to lose significant revenues and market share. Now that the strike is over,
your company will have to struggle to recoup lost customers and pay for the increased wages and
benefits called for in the new union contract. The company's financial situation is precarious to
say the least. You and the entire senior management team have high hopes for the new ad
campaign, and initial consumer response has been positive. You are shocked then, when your head
of operations reports to you that an angry worker has sabotaged one of your bottling plants. The
worker introduced a chemical into one of the machines, which in turn contaminated 120,000
bottles of the spring water. Fortunately, the chemical is present in extremely minute amounts - no
consumer could possibly suffer harm unless they drank in excess of 10 gallons of the water per
day over a long period of time. Since the machine has already been sterilized, any risk of long-
term exposure has been virtually eliminated. But, of course, the claims made by your new ad campaign could not be falser.
List all of the stakeholders involved in this situation.
- Company Management: This includes senior management, executives, and board members
who are responsible for making strategic decisions and overseeing the overall operations of the bottling company.
- Employees: Both unionized and non-unionized employees are stakeholders in this
situation. They are directly affected by the strike, wage negotiations, and any repercussions
resulting from the sabotage incident.
- Union Representatives: Representatives from the union that organized the strike are
stakeholders, particularly in matters related to labor negotiations, employee grievances, and workplace conditions.
- Consumers: Consumers who purchase the bottled spring water are stakeholders as they are
directly impacted by the contamination incident. Their trust in the purity and safety of the
product may be compromised, affecting their purchasing decisions.
- Regulatory Authorities: Government agencies responsible for regulating food and
beverage safety standards are stakeholders. They may need to be informed about the
contamination incident and may conduct investigations to ensure compliance with regulations.
- Suppliers: Suppliers of raw materials, equipment, and other resources are stakeholders as
they have contractual relationships with the company and may be impacted by disruptions
in production or changes in demand.
- Investors and Shareholders: Investors and shareholders who have financial interests in the
company are stakeholders. They may be concerned about the financial impact of the
contamination incident on the company's profitability and stock value. lOMoAR cPSD| 58511332
- Competitors: Competing bottling companies operating in the same market are
stakeholders. They may observe the situation to assess potential opportunities or challenges for their own businesses.
- Community and Local Authorities: The local community surrounding the affected bottling
plant and relevant local authorities are stakeholders. They may be concerned about
potential environmental, or health risks associated with the contamination incident and its aftermath.
- Media and Public Opinion: Media outlets and public opinion are stakeholders as they can
influence perceptions of the company, its products, and its response to the contamination
incident. Media coverage may impact consumer trust and brand reputation.
Do any stakeholder groups have more to gain or lose than others? - Potential Gains:
- Competitors: If consumers lose trust in the company and switch to their products,
competitors could see an increase in their market share and sales. This could lead to higher
revenues and potentially a stronger position in the market. - Potential Losses:
- Consumers: Consumers stand to lose trust in the company and its products. This could
affect their purchasing decisions and their perception of the company. In addition, even
though the chemical contamination is not harmful unless consumed in large quantities over
a long period, the fact that the product was contaminated could cause worry and distress.
- The Company: The company stands to lose significantly on multiple fronts:
- Financial: The sabotage could lead to financial losses due to product recall, decreased sales,
and potential legal liabilities. The company’s precarious financial situation could be further exacerbated.
- Reputation: The company’s reputation could be damaged due to the sabotage and the false
claims made by the new ad campaign. This could affect consumer trust and loyalty, and it
could take a long time to rebuild.
- Operational: The company may need to invest in enhanced security measures to prevent
such incidents in the future, leading to increased operational costs.
- Employees: Employees could face several negative consequences:
- Increased Workload: The sabotage could lead to an increased workload for employees, as
they may need to handle product recalls, communicate with consumers, and implement new security measures.
- Job Security: If the company’s financial situation worsens due to the incident, there could
be layoffs or cutbacks, affecting employees’ job security.
- Morale: The incident could negatively impact employee morale and trust within the company.
- Shareholders: Shareholders could potentially lose if the company’s stock price falls as a
result of the incident. The company’s financial losses, damage to its reputation, and
potential legal liabilities could all negatively impact the stock price. lOMoAR cPSD| 58511332
Develop a strategy for dealing with the contamination.
- Investigate the Contamination: The first step is to conduct a thorough investigation of the
contamination. This would involve identifying the exact chemical that was introduced,
understanding its potential effects on consumers, and determining how it entered the
production process. I would collaborate with the operations team and potentially bring in
external experts to ensure a comprehensive investigation. This step is crucial to understand
the extent of the issue and to inform subsequent actions.
- Address the Immediate Issue: Once the nature and extent of the contamination are
understood, the immediate issue of the contaminated bottles needs to be addressed.
Depending on the nature of the chemical and the extent of the contamination, this could
involve recalling the affected bottles, destroying them, or treating them to remove the
contamination. This step is crucial to prevent any contaminated product from reaching consumers.
- Communicate Transparently: Transparency is key in such situations. I would develop a
communication plan to inform all stakeholders about the issue and the steps being taken to
address it. This includes consumers, employees, shareholders, and regulatory bodies. The
communication should be clear, honest, and timely, and it should emphasize the company’s
commitment to consumer safety and product quality.
- Enhance Safety Measures: To prevent such incidents in the future, I would work with the
operations team to enhance safety measures at the bottling plants. This could involve
improving security protocols, implementing stricter quality control processes, and
providing training to employees about the importance of product safety and the potential consequences of sabotage.
- Review and Update the Ad Campaign: Given that the ad campaign emphasizes the purity
of the product, it may need to be reviewed and updated in light of the contamination. This
could involve adjusting the messaging to focus on the company’s commitment to safety
and quality, and its swift and effective response to the contamination issue.
- Legal and Regulatory Compliance: I would work closely with the company’s legal team
and comply with all relevant laws and regulations. This includes reporting the
contamination to regulatory bodies if required, and handling any potential legal implications of the sabotage.
- Monitor and Learn: Finally, I would establish a process to monitor the situation closely and
learn from it. This could involve tracking consumer reactions, assessing the effectiveness
of the response, and using the insights gained to improve the company’s processes and strategies.
How much does a company's financial situation determine how ethical dilemmas are handled?
- A company’s financial situation can influence how ethical dilemmas are handled, but
it’simportant to note that it should not dictate the ethical course of action. Here are a few points to consider: lOMoAR cPSD| 58511332
- Pressure to Perform: When a company is under financial stress, there can be increased
pressure to meet certain performance targets. This could potentially lead to ethical corners
being cut. However, it’s crucial to remember that short-term gains achieved through
unethical means can lead to long-term damage, including loss of reputation and legal issues.
- Resource Availability: A company’s financial situation might impact the resources
available for ethics programs, training, and enforcement. Companies with robust financial
health are often better equipped to invest in these areas.
- Employee Behavior: Financial stress can influence employee behavior. If employees are
worried about job security, they might feel compelled to act unethically to secure their
positions. It’s important for companies to foster an ethical culture where employees feel
secure and are encouraged to act ethically, regardless of the company’s financial situation.
- Long-Term Sustainability: Ethical business practices are key to long-term sustainability.
Even if a company is facing financial difficulties, maintaining high ethical standards can
help to improve customer trust, enhance brand reputation, and ultimately lead to better financial performance.
- In your case, as a brand manager, you have dual responsibilities - to your consumers and
to your employer. Despite the financial difficulties due to the strike, it’s important to uphold
ethical standards. Providing a high-quality product and regaining lost customers ethically
will not only help in the short term but also establish a strong foundation for long-term
success. Remember, trust once lost is hard to regain. So, it’s better to do things right and
ethically from the beginning. Ethics should not be compromised for financial gains. It’s a
matter of doing what’s right, not what’s easy.
7. Business venture (Conflicts of Interest & Lying) A long-time customer approaches you for
financing for a new business venture. The customer offers as collateral a piece of property it has
purchased in a rural location for the purpose of building a housing development. You send an
appraiser to the property, and he accidentally discovers that this property holds toxic waste. You’re
sure this customer is unaware of the waste; in fact, the waste is migrating and, in a few years, will
invade the water table under a nearby farmer’s fields. You explain the situation to your manager,
who naturally instructs you to refuse to accept the property as collateral, but he also forbids you
to mention the toxic waste to the customer. “Let them find out about it themselves,” he says. Do
you alert the customer to the toxic waste? Do you alert government regulators? Name the issue What would you do?
Cost and benefit of your choice lOMoAR cPSD| 58511332
Lying: This involves not Persuade my manager Benefits: telling the truth or If I were in this Legal Compliance: withholding important situation, I would first
Highlighting the potential legal information that should try to persuade my
ramifications for the company if be shared. In this case, manager to allow me the customer or government the manager’s to inform the customer
later discovers the toxic waste instruction to withhold
and your company’s knowledge information about the about the toxic waste. of it. toxic waste from the If the manager insists Customer Relations: customer is a form of on withholding the
Building a strong relationship lying. information, I would
with the customer by eventually Conflicts of Interest: consider escalating the ensuring they are informed This occurs when a issue to a higher about significant issues person’s personal authority within the affecting their investment interests potentially company or to the thereby fostering long-term interfere with their ethics committee, if loyalty and trust. professional one exists. Depending Cost obligations or duties. In on the laws and Internal Conflict: this case, the regulations in the
Risk of conflict or tension with manager’s interest in jurisdiction, I might the manager and potentially maintaining a good also have a legal other senior management for relationship with the obligation to report the challenging their decision. Potential negative impact on customer and securing toxic waste to your career progression the financing deal environmental conflicts with the regulators. Delay in Decision-Making: professional obligation
Immediate refusal to accept the to be transparent and
property as collateral without honest with the addressing the waste issue customer. might delay the financing process.
If your concerns are dismissed, it could lead to continued
unethical practices within the company.
8. Chairman (Misuse of Company Time and Resources) You’ve been working very long hours on
a special project for the chairman of your company. Your company policy states that employees
who work more than 12 hours in one day may be driven home by a company car at company
expense. Policy also states that employees who work longer than two hours past the regular end
of their day can receive a meal delivered to the office at company expense. You and your colleagues
who are also working on the project are arriving at the office at 8:00 a.m. and order dinner at 7:00
p.m.; then you enjoy dinner and conversation for an hour and are driven home by company cars. Is this OK? Name the issue What would you do?
Cost and benefit of your choice lOMoAR cPSD| 58511332 Misuse of Company Clarify with my Costs: Time and Resources: supervisor or HR If I Monetary Cost: Additional This involves using were in this situation, I expenses for meals and company time or would first clarify with company cars. resources for personal my supervisor or HR
Potential for Policy Abuse: If benefit or non- about the company’s this becomes a norm, it could policy on breaks workrelated activities. lead to higher operational during long work costs. Perception by In this case, the hours. If the hour Management: This practice potential misuse is the spent on dinner and might be seen as taking hour spent on dinner conversation is
advantage of company policies. and conversation, considered a break and Benefits: which could be is within the
Employee Welfare: Ensures that considered non-work- company’s policy, then employees working long hours related, even though it’s acceptable. are well-fed and transported it’s within the long However, if it’s not, I safely. workday. would suggest to my Increased Productivity: A colleagues that we
wellfed and rested employee is limit our dinner and likely more productive. conversation to a reasonable time frame and focus on completing our work during the work hours.
9. Cheating and inflate sale (Lying & Misuse of company resources): It began when Bruce asked
Andy to lie to his wife about his whereabouts. "If Marcia calls, tell her I'm in Phoenix on a business
trip," he told Andy. Of course, he had also confided to Andy that in case of an office emergency,
he could be reached at a local golf tournament or at a nearby hotel where he was staying with
another woman. Since Bruce was senior to Andy and was a powerful contributor in the department,
Andy went along with his request. When Marcia called, Andy told the lie about Bruce being in
Phoenix. Bruce asked several more "favors" of Andy, and Andy complied. Then Bruce asked for
a big favor: he instructed Andy to inflate monthly sales figures for a report going to senior
management. When Andy objected, Bruce said, "Oh, come on Andy, we all know how high your standards are. Name the issue What would you do?
Cost and benefit of your choice lOMoAR cPSD| 58511332
Lying: Bruce instructs Andy Refuse to Participate: Costs:
to lie about his whereabouts Andy should refuse to
Given that Bruce is senior to Andy, to his wife and to inflate
participate in any unethical there’s a risk that Andy’s job
sales figures, which involves behavior, including lying
security could be threatened if he dishonesty and deceit.
and inflating sales figures. refuses to comply with Bruce’s It’s important to maintain requests. Misuse of Company personal integrity and Resources: Bruce utilizes
adhere to ethical standards, Benefits Andy's time and resources even when faced with for personal gain and pressure from a superior. By refusing to participate in unethical activities, unethical behavior, Andy including covering up his Document the maintains his personal and extramarital affairs and Requests: Andy should
professional integrity. This could manipulating sales data. document all of Bruce’s enhance his self-esteem and requests for unethical
reputation in the long run. In Fraud: Bruce's instruction behavior.
addition, by refusing to inflate to inflate sales figures sales figures, Andy helps to constitutes fraud, as it Report to a Higher prevent fraudulent reporting involves deliberately Authority: If Bruce
within the company, which could misrepresenting financial continues to request
have serious legal and financial
information for personal or unethical behavior, Andy consequences. organizational gain. should report the situation to a higher authority
Having a record of Bruce’s requests
could serve as crucial evidence if within the company, such
the situation escalates or if there’s a
as a supervisor, the human need for an investigation in the
resources department, or a future. designated ethics hotline if one exists.
By reporting unethical behavior,
Andy contributes to creating a safe
and ethical work environment. This
could benefit not just Andy, but all employees in the company.
10. Committee members (Discrimination) Your division has formed a committee of employees to
examine suggestions and create a strategy for how to reward good employee ideas. The committee
has five members, but you are the only one who is from a minority group. You're pleased to be
part of this effort since appointments to committees such as this one are viewed generally as a
positive reflection on job performance. At the first meeting, tasks are assigned, and all the other
committee members think you should survey minority members for their input. During the weeks
that follow, you discover that several committee meetings have been held without your knowledge.
When you ask why you weren't notified, two committee members tell you that survey information
wasn't needed at the meetings, and you'd be notified when a general meeting was scheduled. When
you visit one committee member in his office, you spot a report on the suggestion program that lOMoAR cPSD| 58511332
you've never seen before. When you ask about it, he says it's just a draft he and two others have
produced. How would you handle this? Name the issue What would you do?
Cost and benefit of your choice Discrimination: This Address the issue Address the issue directly involves treating directly Costs: people unfairly based If I were in this Potential Conflict: on their membership in situation, I would first
Directly confronting the issue a particular group. In address the issue
could lead to tension or conflict this case, you’re being directly with the with committee members, who excluded from committee members,
may feel accused or defensive. committee meetings expressing my and not being given
Perception of Sensitivity: You access to important concerns about the
risk being perceived as overly documents, possibly lack of communication
sensitive or difficult to work because you’re from a and transparency. If with, which might affect your minority group. Lying: this doesn’t resolve the standing within the committee This involves not issue, I would escalate or the organization. telling the truth or the matter to a higher Benefit: withholding important authority within the Direct Communication: By information that should company, such as a addressing the issue head-on, be shared. In this case, supervisor or the HR
you establish your position and the committee department.
assert your right to be included, members are not being which may lead to immediate truthful about the improvement in communication meetings and the and inclusion. report. Conflict Resolution: This approach can help resolve misunderstandings or miscommunications in a
nonconfrontational way, fostering better teamwork and collaboration. lOMoAR cPSD| 58511332
11. Dizziness in food: As a brand manager at a large food manufacturer, you're positioning a new
product for entry into the highly competitive snack food market. This product is low-fat,
lowcalorie, and should prove to be unusually successful, especially against the rapidly-growing
pretzel market. You know that one of your leading competitors is preparing to launch a similar
product at about the same time. Since market research suggests that the two products will be
perceived as identical, the first product to be released should gain significant market share. A
research report from a small, independent lab - Green Lab - indicates that your product causes
dizziness in a small group of individuals. Green has an impressive reputation, and their research
has always been reliable in the past. However, the research reports from two other independent
labs don't support Green's conclusion. Your director of research assures you that any claims of
adverse effects are unfounded, and the indication of dizziness is either extremely rare or the result
of faulty research by Green Lab. Since your division has been losing revenue because of its
emphasis on potato chips and other high-fat snack food, it desperately needs a low-fat money
maker. Since you were brought into the division to turn it around, your career at the company could
depend on the success of this product.
What are your alternatives?
- I could delay the launch and conduct further research to conclusively determine whether
the product causes dizziness. This would involve commissioning additional independent
studies or re-analyzing the existing data. While this would delay my entry into the
market, it would also ensure that I am launching a safe product. This is the most ethical
option as it prioritizes consumer safety above all else. By conducting further research, I
ensure that I have all the necessary information to make an informed decision about the product launch.
- If possible, I could modify the product to eliminate the potential cause of dizziness before
launching it. This would involve working with my R&D team to identify and change the
ingredient or process that might be causing the issue. This could also delay the launch
and incur additional costs, but it would address the health concerns.
- Another alternative could be to launch the product as planned, but with a clear warning
on the packaging about the potential side effect of dizziness. This would allow me to
enter the market quickly while also being transparent with consumers. However, this
could affect the product’s market acceptance.
What is your obligation to consumers?
- Product Safety: Given the report from Green Lab indicating that the new product could
cause dizziness in a small group of individuals, it’s my responsibility to ensure this claim
is thoroughly investigated. Even though two other labs did not find this issue, the
reputation and reliability of Green Lab mean that its findings cannot be ignored.
- Transparency: If there is a potential health risk associated with the product, it’s my duty
to communicate this to consumers clearly. This includes being transparent about the
potential side effects and the steps being taken to investigate and address the issue.
- Quality Assurance: I need to ensure that the product meets the promised standards of
being low-fat and low-calorie. It’s my responsibility to ensure that the product delivers on
its promises and meets consumer expectations. lOMoAR cPSD| 58511332
- Ethical Marketing: If there are any doubts about the safety of the product, it’s my
obligation to ensure that the product is not marketed to consumers until those doubts are
cleared. This is part of ethical marketing practices and respecting the trust that consumers place in my brand.
What is your obligation to your employer and to other employees at your company?
- Product Success: My primary obligation is to ensure the success of the new product. This
includes effectively positioning the product in the market, managing its launch, and
driving its sales. Given the company’s need for a low-fat, high-profit product, the success
of this product could be crucial for the division and the company as a whole.
- Company Reputation: I have a responsibility to protect and uphold the reputation of the
company. This involves ensuring that all products are safe for consumers and that any
potential issues are addressed promptly and transparently. If the product were to cause
health issues for consumers, it could damage the company’s reputation and lead to
financial and legal consequences.
- Ethical Standards: I am obligated to uphold the company’s ethical standards. This
includes ensuring that all activities are conducted ethically and legally. In this case, this
means thoroughly investigating the potential health risk associated with the product, even
if it could delay the product launch.
- Team Collaboration: I have a responsibility to collaborate effectively with other
employees and keep them informed about the product and any potential issues. This
includes working closely with the research team to investigate the potential health risk
and communicating with other relevant teams about the situation.
What should your course of action be?
- Investigate Further: Given the potential health risk indicated by Green Lab’s report, I
should initiate further investigation into the claim. This could involve commissioning
additional independent studies or re-analyzing the existing data. It’s crucial to ensure that
the product is safe for consumers before it’s launched.
- Communicate with Stakeholders: I should communicate with all relevant stakeholders
about the situation. This includes discussing the issue with my director of research,
informing higher management about the potential risk, and keeping other team members updated about the situation.
- Plan for Different Scenarios: While the investigation is ongoing, I should start planning
for different scenarios. If the product is found to be safe, I should prepare for a swift
launch to gain a competitive edge. If the product is found to cause dizziness, I should
plan for necessary modifications to the product or consider other product alternatives.
- Maintain Ethical Standards: Throughout this process, it’s important to maintain high
ethical standards. This means prioritizing consumer safety over market advantages, being
transparent about the potential health risk, and making decisions that are in the best interest of all stakeholders. lOMoAR cPSD| 58511332
12. Elderly active investor (Financial Misconduct) For 12 years, you’ve been the financial advisor
for an elderly man in his late 70s who is an active investor of his own portfolio and for a trust
which will benefit his two children. In the last few months, you’ve noticed a subtle, yet marked
change in his behavior. He has become increasingly forgetful, has become uncharacteristically
argumentative, and seems to have difficulty understanding some very basic aspects of his
transactions. He has asked you to invest a sizable portion of his portfolio and trust in what you
consider to be a very risky bond offering. You are frank about your misgivings. He blasts you and
says that if you don’t buy the bonds, he’ll take his business elsewhere. Name the issue What would you do?
Cost and benefit of your choice Financial Misconduct: Detailed discussion: If Detailed discussion This involves unethical I were in this situation, Benefit: behavior related to I would first try to Client Autonomy: financial matters, such have a detailed
-Respecting the client’s wishes as making investment discussion with the can be seen as honoring their decisions that are not in elderly man about the autonomy and respecting their the best interest of the risks associated with right to make decisions about their own money. client. In this case, the the bond offering. If he -This might build a sense of elderly man’s request to still insists on
loyalty and trust if the client invest a sizable portion proceeding with the
feels their instructions are being of his portfolio and the investment, I would followed. trust in a very risky consider involving a bond offering could trusted family member Immediate Satisfaction: The potentially lead to or an attorney to client may experience significant loss. ensure his financial immediate satisfaction and interests are being feel empowered by having protected. If all else their wishes executed. fails, I would respect Cost: his decision and make Ethical Concerns: the investment as per Investing in high-risk bonds against professional advice his instructions, but
might lead to substantial losses, only after jeopardizing the financial documenting all the
security of the client and the discussions and trust beneficiaries. warnings about the risk involved. Reputation Risk: If the investment results in significant losses, it could damage the advisor’s professional reputation.
Other clients may lose trust in the advisor’s judgment and integrity.
13. Expected yield (Misrepresentation and Lying): Imagine that your financial firm is offering a
new issue a corporate bond with an expected yield of 7–7.5%. In the past, offerings like this one lOMoAR cPSD| 58511332
have generally been good investments for clients, and you have sold the issue to dozens of large
and small clients. You're leaving on a two-week vacation and only have a few hours left in the
office, when your firm announces that the yield for the bond has been reduced; the high end will
now be no more than 7%. The last day of the issue will be next week, while you're away on vacation. What should you do? Name the issue What would you do?
Cost and benefit of your choice Misrepresentation Inform all the clients Costs: and about the change in
Potential Client Dissatisfaction: Lying yield and interest of -Some clients might be This involves providing bond
disappointed or frustrated with false or misleading If I were in this
the reduced yield, potentially information, which can situation, I would
leading to negative reactions. lead to unfair outcomes immediately inform all This could result in lengthy or decisions based on the clients who have discussions or the need for
further explanations, consuming incorrect data. In this invested or shown
additional time and resources. case, the clients were interest in the bond -Administrative Overhead: initially informed about about the change in Documenting and tracking the a higher yield for the yield. I would explain
communications with all clients bond, but the yield has the situation, apologize to ensure that they are fully been reduced without for the inconvenience, informed may require their knowledge. and provide them with administrative support and the updated meticulous record-keeping. information. If Benefits: possible, I would also Compliance and Ethical arrange for a colleague Standards: to handle any queries or
-Ensuring that all clients are concerns from clients informed about material during my vacation. changes in an investment offering is aligned with regulatory compliance and
ethical standards in financial advisory. -Informed Decision-Making: By informing clients about the change in yield, you enable them to make informed investment decisions. This is particularly important for clients who may have been considering the bond based on
the previously higher expected yield.
14. Fast food restaurant (Consumer Fraud) You’re working the breakfast shift at a fast-food
restaurant when a delivery of dairy products arrives. There's a story in the local newspaper about
contaminated milk that has been distributed by the dairy which has supplied a delivery of milk to lOMoAR cPSD| 58511332
your restaurant. When you read the article more closely, you discover that there's a problem with
only a small portion of the dairy's milk, and the newspaper lists the serial numbers of the containers
that are problems. When you point out the article to your manager, he tells you to forget it. "If you
think we've got time to go through every carton of milk to check serial numbers, you're crazy," he
says. "The article says right here that the chances are minuscule that anyone has a contaminated
carton." He also explains that, not only doesn't he have the workers to check the milk, but also
destroying the milk would require him to buy emergency milk supplies at the retail price. So, he
tells you to get back to work and forget about the milk. He says, "I don't have the time or the money
to worry about such minor details." Name the issue What would you do?
Consumer Fraud: This involves deceptive Persuade my manager
practices that result in financial or other
If I were in this situation, I would first try to
losses for consumers in the course of
persuade my manager about the seriousness of seemingly legitimate business
the issue and the potential health risks to
transactions. In this case, the manager’s
consumers. If the manager still refuses to take
decision to ignore the potential
action, I will consider reporting the issue to a
contamination of the milk could lead to
higher authority within the company or to the
health risks for consumers, which is a local health department. form of consumer fraud.
Cost and benefit of your choice Cost:
Immediate Operational Disruption:
-Time and Labor: Diverting staff to check serial numbers on milk cartons will temporarily
reduce the workforce available for other tasks.
- Potential Delays: Breakfast service might be slower, impacting customer satisfaction and
possibly leading to a temporary drop in sales. Financial Impact:
-Additional Costs: If contaminated milk is found, it must be discarded, leading to an unplanned
expense for emergency milk purchases at retail prices.
-Labor Costs: Additional labor or overtime may be required to manage the extra workload of checking the milk.
-Potential Conflict: Persistent persuasion could lead to tension or conflict with the manager. Benefit Customer Health and Safety:
-Prevent Illness: Ensuring no contaminated milk is served protects customers from potential health risks.
-Build Trust: Taking proactive steps to ensure safety builds customer trust and loyalty. Legal and Ethical Compliance:
-Avoid Legal Issues: Serving contaminated milk could lead to legal action against the
restaurant, including fines, lawsuits, and health department violations.
-Ethical Responsibility: Upholding ethical standards reinforces a culture of integrity and lOMoAR cPSD| 58511332 responsibility. Long-term Reputation:
-Protect Reputation: Handling the situation transparently and responsibly can enhance the
restaurant’s reputation for prioritizing customer well-being.
-Positive Publicity: If the action becomes known, it can lead to positive publicity,
demonstrating the restaurant’s commitment to safety and quality. lOMoAR cPSD| 58511332
15. Forged the signature (Fraud): You're a manager in a large commercial bank. You discover that
Patricia, a loan officer who reports to you, has forged an approval signature on a customer loan,
which requires signatures from two loan officers. When you confront Pat with the forgery, she
apologizes profusely and says that her husband has been very ill. The day she forged the signature,
he was going into surgery, and she just didn't have time to find another loan officer to sign the
authorization for the loan. Pat has been with your bank for 15 years and has a spotless record Name the issue What would you do?
The primary ethical issue in this case is Report the Incident to Higher
fraud. Patricia, a loan officer, forged an Management:
approval signature on a customer loan,
which constitutes fraudulent behavior.
Inform senior management and the bank's
Despite her long tenure and spotless
compliance department about the incident.
record, her action undermines the bank's
Ensure transparency and proper
trustworthiness and compliance with
documentation of all findings during the regulatory standards. investigation.
Cost and benefit of your choice Benefits:
Upholding Bank’s Policies: Reporting the incident ensures that the bank’s policies are upheld.
This sends a clear message to all employees about the importance of adhering to policies and
procedures, which could prevent similar incidents in the future.
Protecting the Bank: By reporting the incident, you protect the bank from potential legal
implications that could arise if the forgery is discovered later. This could include lawsuits from
customers or regulatory penalties.
Maintaining Trust: Reporting the incident helps maintain trust within the team and with
customers. It shows that the bank takes ethical issues seriously and is committed to addressing them. Costs:
Investigation & Documentation: Reporting the incident requires conducting a thorough
investigation and documenting all relevant information, including gathering evidence and
preparing reports. This process can be time-consuming and may divert attention and resources
from other managerial responsibilities.
Reputation Risk: Reporting the incident to senior management carries the risk that they might
perceive it as a failure of oversight on the part of the manager. This could lead to a loss of trust
or credibility in the eyes of senior management and potentially impact the manager's standing within the organization.
16. Fundamentalist church (Discrimination Abusive & Intimidating Behavior): One of your
direct reports, Robert, belongs to a fundamentalist church. Although you have no problems with
anyone's religious beliefs, Robert is so vocal about his religion that it's becoming a problem with
other employees in your department. He not only preaches to his fellow employees, but he also
has criticized the attire of some of his female co-workers, and continually quotes the bible in staff