Case Study: Business Ethics

Running head: CASE STUDY: BUSINESS ETHICS
Case study: Business ethics
Name of the Student
Name of the University
Author Note

CASE STUDY: BUSINESS ETHICS
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Theory on ethical leadership:.....................................................................................................4
Framework for resolving ethical dilemma arising in managerial careers:.................................6
Conclusion:................................................................................................................................8
References list:...........................................................................................................................9
Introduction:
The report is prepared for critically evaluating and discussing the role of leadership in
the event of conflict between the commercial realities and public safety concerns. The issue

CASE STUDY: BUSINESS ETHICS
of the ethical dilemma is explained in reference to the case of Firestone Tyre Company which
was perhaps the biggest auto safety crisis in the history of United States. Such dilemma
ensuing for leaders in the given circumstances is addressed in the report. This particular case
has been accounted for as it focuses on the ethical decision making during the event of
corporate crisis. It was found that in a gesture of concern for safety of public, Firestone
recalled several million of tires. Potential disaster was faced by Firestone with threat from its
largest customer and with public replacing millions of tires each year (Chen et al. 2016).
Therefore, the emphasis of the case is decision making with a particular focus on ethical
considerations against the financial objectives. The role of leadership in the situation of
ethical dilemma would be addressed by giving an explanation on the role and characteristics
of ethical leadership.
Discussion:
The guidelines seeking the good of others and honesty has the same application in
commerce just as they have in other aspects of life. It would be embarrassing and costly for
Firestone conceding that it has produced and sold tires to public that are unsafe. From the
case study, it is ascertained that Firestone was ignorant about the health and safety of public
as they were negligent about the quality of their product. The defective tires manufactured by
Firestone possibly would have caused a number of deaths across the country. Such disastrous
auto wrecks and failure of tires causing injury of thousands of people has led to ending of the
relationship of Ford with the Firestone. The company instead of accepting their mistakes
blamed its long standing customer for producing faulty and dangerous products (Murphy and
Laczniak 2016).