Case Study Analysis: Ethical Decision-Making in Tech Innovation

This case study analysis delves into an ethical dilemma faced by an organization launching a new technological innovation, specifically concerning potential side effects on pacemakers. The analysis identifies potential causes of the dilemma, including a lack of clear policies, management pressure for profits, and the desire to minimize costs. Recommendations are made to improve these causes by establishing clear policies for innovation, creating autonomy for sensitive departments, and prioritizing customer well-being over profits. The case study discusses the ethical considerations of balancing potential profits and market share with the risk of harm to individuals, ultimately suggesting a strategy of launching the product with continuous improvements to address the identified side effects. Desklib offers a wide range of solved assignments and past papers to aid students in their studies.

Running head: CASE STUDY ANALYSIS 1
Case Study Analysis
Ethical dilemma
Student’s name
University

CASE STUDY ANALYSIS 2
Case Study Analysis
Step 1: Define the Problem
The organization is struggling with meeting ethical standards required when designing a new
technological innovation. Ethics focus on the general laws of nature and society to examine
habits and actions of individuals (Thorpe, 2006). From the case study, the ethical dilemma faced
by Henderson is whether it is right to launch the new product without doing modifications that
will reduce the side effects that it may have to pacemakers. The team concerned is faced with
this challenge which threatens the business goal of the organization (Sherman & Anderson,
2017). The ethical question here will be is it right to continue launching of the product since the
pacemaker effects are almost negligible or go back to the laboratory to make suggested changes.
Identify 2: Identify Causes
Potential cause 1: Lack of clear policies- One of the causes of the dilemma is lack of unclear
policies to guide innovations (Brown & Hage, 2005). From the case study, there is no clear
policy that guides the way such innovations should be treated. Cohen (2001) adds that the
organization needs to have clear policies that define every step that the innovation goes through
before it is declared ready for launching. Management has done launching tests and it is
suggested that some board members and Auto Sensor may push for an early release despite the
challenges in the technology.
Potential cause 2: Management pressure- Pressure from management is another cause of
unethical behaviors in an organization. Stressing profits exerts pressure on employees to deliver
within tight timelines that may lead to compromising quality and ethics. Martin tells Henderson
that they are under pressure and cannot afford to extend or make any modifications to the

CASE STUDY ANALYSIS 3
technology (Sherman & Anderson, 2017). This problem may lead to compromised ethical
behaviors to fulfill management needs.
Potential cause 3: The need to make more money through increasing profits-The push for money
and organizational success may lead to compromised ethical issues. The delay will lead low
customer purchases thus a drop in Auto sensor revenues, cost more than $25,000 for a new FCC
recertification and at the same cost the lives of those looking forward to be employed (Sherman
& Anderson, 2017). The desire to save costs and make more money can lead to the ethical
dilemma of launching the product as it is.
Step 3: Recommendations
Recommendation for improving cause 1- Policies are used to define the procedures to be
followed in every activity through setting the required standards. Foote, Seipel, & Johnson
(2005) suggest that they provide a structure and framework for the business that defines the
culture of the organization. For a new technology the organization must set some requirements
that act as a checklist to be used for evaluation before launching or completion (Desson &
Clouthier, 2010). The checks were done by Henderson and not a policy requirement. Such
strategies will reduce the ethical dilemma that the organizations and the concerned team are
facing.
Recommendation for improving cause 2-Pressure from management can be resolved through
creating autonomy and independence of sensitive department like the one headed by Henderson.
Levels of engagement should be defined to allow the concerned team to work on projects
without strict timelines (Sampao & Leonardi, 1993). Management should abide by the set
standards in the organization rather than focus on the economic outcome of the process.

CASE STUDY ANALYSIS 4
Recommendation for improving cause 3-Despite the fact that organizations exist to make profits,
business decisions need to be weighed to determine the repercussions that they will have on the
company. Profits are only good if they are made through practices that put the customer first.
Discussion
Jack is faced with an ethical dilemma between doing what is ethically right or yielding to
the concerns of the organization. Despite the fact that the product will lead to increased profits
from sales and improved market share, it has been discovered that the new innovation may affect
pacemakers thus leading to death or heart failure. This incidences are minimal and may not occur
much while at the same time they may not be linked to the technology that they have invested.
Enforcing quality standards ensures that management and shareholders only approve the right
decisions (Freeman, 1994). Products that do not meet quality requirements should be referred
back for further development. This strategy will safeguard the image of the organization and
create a socially responsible business that balances between its needs and the needs of the
community. Management needs to consider different elements of the product that will lead to
sustainable profits rather than one off outcomes that may cost the organization in future. This
will reduce future challenges and create a better image to the organization. Through explaining
to customers on the causes of the delay, corporate social responsibility will have been enhanced
thus improving relationship with customers.
On the other hand, the economic existence of any organization is to maximize profits
through exploiting all the available resources. This means that the organization will save $25,000
from new certifications for the changes in the technology while at the same time an early release
will lead to more profits. Delays in the release of the product will cost the market share and sales

CASE STUDY ANALYSIS 5
since customers are already aware of a new product that is to be launched soon. This may force
them to delay any purchases as they wait for the highly anticipated technology. Therefore, delays
will lead to business losses both in reduced market share and another expenditure for
recertification. This is a burden that the two companies are not willing to take. This technology is
regarded as the best strategic fit that will fix revenue streams that the company has been facing.
Therefore, it is better to launch the product the way it is since the side effects are minimal and
may not be realized at all. Further, the pacemaker instances are minimal and can easily be
justified in a court of law in case any affected individual takes the company to court.
Additionally the product can be launched then the adjustments will be taken in as
continuous improvements for the technology. Quality management requires continuous
improvements of a product to meet the changing business environment requirements. Thus the
modifications can be take care of the recommendations that Jack proposes but allow the product
to have an early hit of the market. In my opinion, this is the best option since it will have greater
benefits to the company.

CASE STUDY ANALYSIS 6
References
Brown, S., & Hage, J. (2005). Innovation Blowback: Disruptive Management Practices from
Asia. Mckinsey Quarterly, 1, 34-45.
Cohen, M. (2001). 101 Ethical Dilemmas. Carolina University, USA: Routledge.
Desson, K., & Clouthier, J. (2010). Organizational Culture . Symposium on International
Safeguards International Atomic Energy Agency. Viena.
Foote, D. A., Seipel, S. J., & Johnson, N. B. (2005). Employee commitment and organizational
policies. Management Decision, 43(2), 203-219.
Freeman, R. E. (1994). The politics of stakeholder theory: Some future directions. Business
Ethics Quarterly, 6(4), 409-421.
Sampao, J. C., & Leonardi, M. C. (1993). Business Rules as Organizational Policies. Journal of
Language and Aplications, 6(2), 68-76.
Sherman, C. A., & Anderson, P. M. (2017). Acceptable risk and life and death decisions: a case
study. The CASE Journal, 10(1), 102-107.
Thorpe, L. (2006). The Point of Studying Ethics According to Kant. The Journal of Value
Inquiry, 40(4), 461-474.