Ethics and Justice in Managerial Social Responsibility: A Case Study

This case study explores ethical and justice-related dilemmas in managerial social responsibility, presenting two distinct scenarios. The first scenario involves a conflict between smokers and non-smokers in a residential community, requiring an ethical rights theory approach to balance individual freedoms and health concerns. The recommendation is to designate specific smoking areas. The second scenario centers on Electrocorp's potential relocation of production sites from the US to countries with lower labor costs, raising issues of child labor, environmental pollution, and employee redundancy. The ethical justice approach emphasizes fairness and equitable treatment, suggesting that the company should prioritize ethical considerations, such as avoiding child labor, even if it means higher costs, and provide fair compensation to displaced employees. The case highlights the importance of integrating ethical principles into corporate decision-making, ensuring that business strategies align with broader social responsibilities.

Running head: MANAGERIAL SOCIAL RESPONSIBILITY
Ethics and Justice
Name of the Student
Name of the University
Author Note

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Table of Contents
Case study on ethics:.......................................................................................................................2
Facts:............................................................................................................................................2
Issues:..........................................................................................................................................2
Dilemma:.....................................................................................................................................2
Ethical rights theory:....................................................................................................................2
Recommendation:........................................................................................................................3
Case study on justice:......................................................................................................................4
Facts:............................................................................................................................................4
Issues:..........................................................................................................................................4
Dilemma:.....................................................................................................................................5
Ethical justice approach:..............................................................................................................5
Recommendation:........................................................................................................................5
Reference:........................................................................................................................................7

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Case study on ethics:
Facts:
This case study is based on the problem regarding smoking. It has been mentioned in the
case that in a residential property, smoker and non-smokers are living (Fryer 2016). The problem
has been arisen regarding the health issue of the non-smokers. They are alleging that the
unhealthy life styles of smokers create affect on their life. They could not breathe properly or
their right to roam in a healthy atmosphere has been affected by the smokers. Further, they are
alleging that they have to bear extra charges due to the life style of the non-smokers and the
smoking is affecting the environment (MacKinnon and Fiala 2014). However, the smokers have
contended that the terms of the residential complex contains that the smokers can live in the
complex freely and after some period, certain restrictions have been imposed over their addiction
and now they could not enjoy their life freely any more.
Issues:
The main issue regarding this case to find out whether the recommendation made by the
smokers and non-smokers in this case are based on the ethical rights approach or not.
Dilemma:
The interest of both smoker and non-smoker are important and therefore, taking the right
decision is the main dilemma in this case.
Ethical rights theory:
According to Rights theory, the decisions should be taken into such manner so that the
rights of both the smokers and non-smokers can be secured. There are certain cases dealing with

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the ethical issues regarding contentious smoking issues. In Shimp v. New Jersey Bell Telephone
Co. 145 N.J. Super. 516, an allegation has been made against the smoking group within the
workplace and the victim has to suffer lots of breathing problems due to passive smoking. It was
decided the authorities should specify that place of smoking, as both the parties have the rights to
exercise their rights. Ethics help an individual to find out the fact that how a wrong act can be
differentiate from the right one. Ethics help to take proper decision. There are four types of
ethical considerations present such as Deontological theory, Utilitarian theory, Rights theory and
Justice Theory (Shafer-Landau 2014). The ultimate object of ethical theory is to make justice for
all the people and the ethics maker should have to focus that no one is getting harm by the action
of others (Broad 2014). According to the contents made in the case study, it has been observed
that Rights theory will be applied in this case.
Society provides every individual certain rights that they can enjoy in their everyday’s
life. These rights can be termed as right to life, right to work, equal treatment before law and
right to choose. There are other rights too. These rights can be divided into natural rights and
legal rights (Pojman, Pojman and McShane 2015). John Locke was the supporter of this theory.
According to this theory, the rights can be based on the legal right or the moral rights.
Considering the importance of these rights and effectiveness, all the rights are treated with
highest priority. A proper interpretation of these rights can be revealed the facts that it is the duty
of the society to find out whether all the rights are secured or not. An individual can be asked for
the rights of health, but conflicts can be cropped up if the right to health contradicts the matter of
right to life. In this case, decision should be taken from the ethical view.

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Recommendation:
In this case, it can be recommended that residential authorities should have to specify the
smoking place so that the interest of both the parties could be secured.
Case study on justice:
Facts:
Electrocorp has faced trouble in their US branch and therefore, they are likely to open
their production sites in the countries like South Africa, Mexico and Philippines. When the
company has started to chalk out their plans, it has been observed that Mexico and Philippines
are quite comfortable for business compare to South Africa. The labor wage in both the countries
is quite reasonable and the environment issue is not stringent there. Certain corporate
responsibilities are also there to find out properly for the company to relocate their business
address. According to the ethical justice theory, every company has certain corporate
responsibilities such as honesty, integrity and transparency. These theories are applicable in case
of collective business prospects. It is therefore important for the company to abide by all the
legislations and policies of each country. Further, relocation of the business includes employee
redundancy and therefore, the company should have to think about proper planning process
regarding the ethical measures.
Issues:
The main issue that has been cropped up in this case is to decide whether the company
should profess their business in USA or should relocate their business in the above-mentioned
countries. The financial instability that has been faced by the company in USA could be resolved
if they start their outlet in Mexico and Philippines. However, certain ethical dilemmas are there

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regarding the business such as child labor and environment pollution. On the other hand, the
industry relocation in South Africa is quite expensive for the company. Further, the workers are
quite conscious about their rights in South Africa. In addition to this, company is facing issues
regarding deployment as it has been observed that the company has to redundant its employees
in USA if they shift their business in those countries. The employees are quite loyal and
experienced. Therefore, the company founds it difficult to decide what will be the right decision
regarding the same.
Dilemma:
Selecting the ideal country for the relocation of business is the main dilemma in this case.
the company has to decide whether it wants to follow the business ethics or should support its
financial backbone.
Ethical justice approach:
The justice approach is based on the grounds of fairness. The approach has derived its
origin from the doctrine of Aristotle. According to him, “equals should be treated equally and
unequal unequally”. This concept attempts to find out the fair provisions of an action and the
extent to which an action can be equal in nature. In this ethical approach, the decision-maker
should have to identify the fair and unfair grounds of the decision and they have to treat all the
people equally.
Recommendation:
In this case, if the country has chosen South Africa, they can avoid the ethical dilemma
regarding the child labor and environmental issues. The company is required to abide by all the
rules applicable for this country and the environmental morality of this company will be

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increased. On the other hand, regarding the deployment of the employees, the company can
compensate the old employees and relocate its business for the betterment of the company.
Further, the wages of the traditional employees of the company should get their remuneration
and the company should have to notify all the employees before sixty days regarding the
relocation.

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Reference:
Broad, C.D., 2014. Five types of ethical theory (Vol. 2). Routledge.
Fryer, M., 2016. A role for ethics theory in speculative business ethics teaching. Journal of
business ethics, 138(1), pp.79-90.
MacKinnon, B. and Fiala, A., 2014. Ethics: Theory and contemporary issues. Nelson Education.
Pojman, L.P., Pojman, P. and McShane, K., 2015. Environmental ethics: Readings in theory and
application. Nelson Education.
Shafer-Landau, R., 2014. The fundamentals of ethics.
Vaughn, L., 2015. Doing ethics: Moral reasoning and contemporary issues. WW Norton &
Company.
Williams, F., 2014. Global social justice, ethics, and the crisis of care. In Transformations in
global and regional social policies (pp. 85-107). Palgrave Macmillan, London.

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