Ethics and Governance: Case Study Analysis

Running head: ETHICS AND GOVERNANCE
ETHICS AND GOVERNANCE
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Author Note

1ETHICS AND GOVERNANCE
Executive summary
This paper is based on a case study where the company has being facing challenges because
of the low wages provided to their staffs who work in the factories. This case study focuses
on two important characters ad people who hold a position in the company which is the COO,
Mr. Goodrich and the management accountant, Arnold. This paper will analyze their
behavior by applying different theories of ethics and also provide decisions that can be taken
by these people making ethical considerations which may contribute to make proper decision
that will help the organization or the company rise and also overcome the existing issues.

2ETHICS AND GOVERNANCE
Introduction
Ethics is an important aspect in every organization. Ethical considerations in an
organization help in making the organization more systematic and positive which paves way
for a healthy business environment (Tidd & Bessant, 2018). This paper is a case study about a
company going through a crisis because of their mistake where they have paid low wages to
the factory staff and this case study will help in assessing and understanding the behaviour of
the important people in the business by applying theory of ethics and help in making ethical
considerations that would help people in the company make positive decisions that will help
them in addressing the issue and overcome the issue efficiently and effectively.
Part A
Mr. Goodrich’s behaviour using the theory of egoism
Mr. Goodrich holds an important position in the company and it reflects on his
behavior and the way he presents himself. From the case study, Mr. Goodrich comes across
as arrogant and rude because of his behavior with the Arnold, the management accountant
and Amanda, HR manager whom he terminates. He comes across as egoistic because of the
powerful position he holds however seen on a different light by applying the theory of
egoism, his behavior is justified. The theory of egoism states, capitalism is built on individual
achievement and personal ambition (Fang & Slavin, 2018). An egoist person irrespective of
their behavior can make ethical decisions that may benefit several people. Mr. Goodrich
irrespective of his rude behavior is desperate to make an effective decision in order to save
his position in the company and also save the company to protect the reputation of the
company which eventually benefits many like the stakeholders of the company. He is

3ETHICS AND GOVERNANCE
considered to be a competent leader as he is known as tough results achiever and he wants to
attain this reputation of his by saving the company from potential downfall.
Mr. Goodrich’s behaviour using utilitarianism theory
According to the theory of Utilitarianism, the main focus is put on the happiness is
attained by majority of the people aligning with the policies, rules and regulations (Mill,
2016). The theory also suggests that the good is seen in the end result however does not focus
on how the outcome may have been achieved (Bowen, 2017). From the case study it can be
seen that Mr. Goodrich has hurt the sentiments of Arnold, the management accountant and
Amanda, HR manager by misbehaving with them and also by terminating Amanda however
from the perspective of Utilitarianism, Mr. Goodrich has done all this to achieve his aim
which is to save the company from the untoward situation that has arised. Saving the
company will benefit many people in the long run and it will help Mr. Goodrich at the end as
well. With the application of the theory, Mr. Goodrich may be appreciated if the decision
taken by him helps save the company and the negative consequence like the termination of
the HR manager will not be focused on as the decision is beneficial for the majority.
Arnold’s behavior using the utilitarianism theory
Arnold, the management accountant is responsible and is sincere. In the case study it
can be seen that he has been treated poorly because of the bad news that was broken to the
COO of the company, Mr. Goodrich. Despite of the misbehavior and the constant yelling of
Mr. Goodrich at him, he for once did not argue. He was asked to present a full report with
possibilities which can help the organization overcome the situation of crisis which he did
present within a stipulated time. Applying the Utilitarianism theory from this act of his shows
his dedication to do good and help in making ethical decisions that benefit most of the people
that are associated with the business. Arnold is seen preparing a thorough report on the