Ethical Issues in Business: A Case Study of Kobe Steel

Accounting in Society

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Ethical issues the company has incurred.....................................................................................1
Determination of decisions made by the parties involved and whether they match with its
ethics or not.................................................................................................................................1
How stakeholder and businesses were impacted by the ethical issues.......................................2
Opinion of mine on business ethics and how they have changed my perspective......................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The project file reflects the ethical issues faced by the corporate house and which has
diverted the whole attention of media towards this case. Kobe steel, operating worldwide under
the brand Kobelco is well-known, one among the largest metal making company with more than
200 subsidiaries and 62 companies in which it holds minority shareholding. However,
organization deals in the steel, titanium, welding robots, system aluminum, copper products and
construction and industrial machinery cranes. This report will look into the ethical issues faced
by the parties and what necessary decisions were made. Further, in this principle, impact on the
stakeholders and businesses are also included which will impact company with economy as a
whole.
Ethical issues the company has incurred.
The organization has indulged in the quality scandal by executing the unethical practices
along with providing false information on certificate. Moreover, company also have sold
products of inferior standard to unknowing customers without examining the grade that was
necessary to conduct (Sarwar and et.al., 2020). Subsequently, they have also falsified the
inspection certificates by recording untrue details which satisfies the quality level needed. The
firm has played with the sentiments of its consumers by being dishonest with them regarding the
standard of the products. Another issue corporate has faced is the failure in the construction of
cars and airplanes with their low grade metal sold to the manufacturers.
Determination of decisions made by the parties involved and whether they match with its ethics
or not.
The production department has faced the biggest failure even by being the number one
metal maker industry in the world. They have breached the many principles of ethics which are
mentioned below:
 Integrity and objectivity: This is the main and foremost rule that any company needs to
follow for its survival in competitive world by sticking towards the objective and moving
forward with this practice. In the case of Kobe metal firm they have breached this
principle by being dishonest with their consumers regarding the quality of the metals
they are providing to them (Snyder and Tan, 2020). Moreover, it also has not twigged
with its own objective of building the world richer and sustainable. However, they also
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