Analyzing Ethical Issues: A Case Study on Competitive Intelligence

This case study explores the ethical challenges faced by Michael Vasquez, a product manager at a technology firm, when his boss presents him with illegally obtained competitive intelligence from a rival company. The study identifies competitive intelligence theft as the primary ethical issue, highlighting the conflict between gaining a competitive advantage and engaging in unethical or illegal activities. It suggests potential actions Michael can take, including explaining the consequences of the theft and utilizing virtue ethics and deontology theories. The analysis emphasizes the unethical nature of the boss's actions and considers whistleblowing as a viable option for Michael. The study concludes by underscoring the importance of ethics in business decision-making, CSR, integrity, and maintaining a strong code of conduct, noting that Desklib provides resources for students to study similar cases.

Running head: Business ethics
Business ethics

Business ethics
Table of Contents
Introduction.................................................................................................................................................3
Main body...................................................................................................................................................3
Answer 1.....................................................................................................................................................3
Answer 2.....................................................................................................................................................4
Answer 3.....................................................................................................................................................5
Answer 4:....................................................................................................................................................5
Answer 5.....................................................................................................................................................7
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8
2

Business ethics
Introduction
The paper explains the significance and role of the ethics in each and every company. No
company can survive and grow its business without ethics and code of conducts. Ethics
determines whether what is right or wrong, what is good or bad. The paper explains that how
Michael Vasquez faces ample of challenges in the firm. It also discusses the illegal activity that
was conducted by the Michael boss in the organization. More detail of the task has been
discussed below.
Main body
Answer 1
By analyzing the given case study, it has been evaluated that Michael Vasquez is facing ample of
issues in the organization. One of the significant and effective issues that is faced by Michael
Vasquez is competitive intelligence theft. It is noted that Michael Vasquez who is a product
manager for a technology firm therefore various issues were handled by him while initiating the
business activities and operations. The Michael’s boss handled and managed him a pile of
private strategic documents from their closest rivalry (Craft, 2013). The information and facts
are managed by his boss to gain competitive benefits to Michael Vasquez’s firm. The case study
shows that illegal activities were undergone in the firm. In this situation Michael Vasquez was
very suspicious and uncomfortable. Michael asked with his boss about the documents. It is
effective and unique ethical issue of pinching the rivalries separate and confidential information
and facts including partnership agreements, product plans, pricing strategies and other relevant
documents. All these documents were very confidential and private. Competitive intelligence
theft is the biggest and leading ethical issue that could hamper the financial position and
goodwill of the firm. It has been revealed that competitive intelligence theft is an effective
approach. It is an action of gathering, defining, explaining, analyzing, identifying and
distributing intelligence about the products, documents, customers, competitors and any aspect of
the environment needed to support. It was very complex situation for Michael to make unique
decisions. He was unable to prevent and reduce this ethical issue within the organization.
3

Business ethics
Answer 2
It has been analyzed from the given case study that Michael was facing plenty of issues during
his employment. It has been found that there are two actions can be taken by Michael to
overcome and prevent this ethical issue. It was a serious and complex ethical dilemma for
Michael. He was very suspicious with this ethical dilemma and he was very worried about this
issue. Firstly, he should try to explain the consequences of this ethical dilemma. He should
explain the adverse impact of this issue. Along with this, Michael Vasquez must try to improve
the behavior and perception of his boss in terms of competitive intelligence theft. He should
explain that this ethical issue can hamper the goodwill and image of his boss in the competitive
market. The two ethical theories can be used to prevent this ethical issue that has been detailed
below (Ford and Richardson, 2013).
Virtue ethical theory: Virtual ethical theory is an effective approach to ethics that focus an
individual’s aspects, values, character and key factors of ethical thinking instead of rules and
norms about the act themselves (Shafer-Landau, 2012). This theory focuses and indentifies the
individual attributes in the organization. In the given case study, Michael Vasquez makes
different perception about his boss because Michael’s boss was engaged in ethical dilemma. It
could affect the behavior and nature of the person. Michael must try to change the perception and
behavior of his boss (Turteltaub, 2014).
Deontology theory: This theory can also be used in this case. The deontology is an ethical
theory that sues rules and norms to differentiate right from wrong. This theory is usually
associated with philosopher Immanuel Kant. This theory judges and analyzes the duties and
obligations of the person whether they wrong or right (Chonko, 2012). Apart from this, Michael
should discuss this issue with competitive intelligence professionals and legal counsel of the
firm. These professional can provide right guidance in various matter related to the ethical
dilemma. These professional persons and bodies can provide right and effective guidance and
suggestion to Michael for preventing this ethical issue. After taking with these bodies, Michael
should act according to their guidance. These professionals’ executives and bodies can provide
ample of knowledge and experience to handle and reduce the ethical dilemma. In this situation,
deontology theory can be applied in the organization. This theory suggests that each and every
person must comply with their roles, duties, responsibilities and obligations while making unique
4

Business ethics
decisions. The employees should follow all the rules, policies and regulations that have been
made by the company related to the competitive intelligence dilemma. Virtue theory and
deontology theories can assist and guide Michael Vasquez to make effective and unique
decisions within the organization (Broad, 2014).
Answer 3
It has been stated from the given case study that the actions of Micahel’s boss was not ethical. It
was completely unethical that can affect the image of the company negatively. The competitive
intelligence theft activity was being undergone in the organization. He got confidential
information, facts and data related to the price, plans and partnership agreements. In this case,
Michael asked from his boss about this acquired data and information. Michael’s boss answered
him that he had taken this data and information from the competing firm’s server. He told that he
received into the private section on their intranet and downloads this private information and
data. His boss had stolen this information or data from their intranet. It indicates that Michael’s
boss had taken this data and information unethically. Along with this, it also discloses that he had
stolen the password of the firm. It is analyzed that Michael’s boss was not ethical because he
copied this fact and data while implementing the business functions and operations. After some
time, his boss realized that Michael was doubt about this act, then he Michael’s boss said that he
had acquired data and information from the electronic access. Michael’s boss also told that he
did not break any password to get the information. Now it is assumed that perception of
Michael’s boss was not good, it is considered completely unethical behavior (Taylor, 2011).
Answer 4:
After studying the given case study, it has been noted that Michael should blow the whistle. In
the give case study, unethical activity was carried out by Michael’s boss. His boss had stolen safe
and confidential information that were related to the pricing, plans and partnership agreements.
Michael should stop his boss to stop this unethical activity that was done by Michael’s boss.
Michael should explain his boss about the adverse impact of this unethical issue. But Michael
was failed to induce his boss to change his behavior or perception (Crane and Matten, 2016).
5

Business ethics
It is noted that whistle blower is a person or individual who disclose any kind of information,
fact, and activity that is deemed unethical, illegal and incorrect within the organization that is
either private or public. Michael can use whistle blowing policy to stop the illegal activity and
issue. The main and primary objective of this policy is to inspire employees and others who have
serious issue about any aspect of the council’s work to come forward and voice those issues. It is
a policy through which employees can intimate the higher authority about the illegal issue or
concern. In today’s era, each and every company can use this whistle blowing policy to stop
immoral and illegal act or issue (Russell, 2013).
There are various elements which can motivate the individuals to encourage in whistle blowing
activity. Integrity and justice is one of the largest and unique motivations for whistle blowing
activity. It has been analyzed that wrong persons are responsible for the illegal activities and any
misconduct. The company can organize reward program to encourage the people in the
organization for performing well and successfully. It helps in stopping illegal and unethical
activities within the organization (Sorokin, 2017).
Along with this, reward program is another whistle blower that motivates the people for doing
work well. Self preservation is also an effective motivation for the whistle blower. There are
ample of circumstances where whistle blowing is justified and effective. Some of the
circumstances have been detailed below.
 When an ethical activity is undergone by the senior executive and managers then whistle
blowing can be justified.
 When a worker identifies and recognizes a serious issue of harm to customers,
stakeholders and employees.
 In addition, there are a circumstances of product which can be hampered the image of the
company.
 When an employee reports alleged company misconduct to the government, media and
high level company officials then whistle blowing has occurred.
Answer 5
Ethics plays a significant role in each and every company to run the business operations and
actions in a hassle free manner (Robinson, 2011). It is a branch of philosophy that includes
6

Business ethics
defending, systematizing and recommending concepts of right and wrong conduct. It refers to the
moral principles that govern a person’s behavior or conducting of an activity. There are four
reasons that show that ethics is relevant to the business have been discussed below.
 Ethics plays a vital role in decision making. It helps in making unique and effective
policies and strategies to govern the behavior and actions of the people. Ethics is essential
to assist the workers and managers to build ethical behavior and concept so that they can
make unique decisions within the organization. Ethics also protect the right of the
stakeholders and workers (Banks and Nøhr, 2013).
 Ethics plays a fundamental role in CSR development and sustainability. The ethics learn
the workers about the norms and values of the company. In the given case study,
Michael’s boss involve in unethical issue and activity that could also affect the CSR and
environment of the company. The organization should understand and identify their
obligations towards the society and its stakeholders (Ardichvili, 2013).
 Ethics also plays a foremost role in value integrity and honesty. It is one of the important
reasons behind the business ethics relevancy and effectiveness. Ethics helps the
employees to perform roles and responsibilities with honesty and high integrity
(McElroy, 2014).
 Ethics also helps in maintaining effective and unique code of conduct in the organization.
It helps in building and boosting the reputation and image of the firm. The brand image
and goodwill can be enhanced and increased with the help of ethics (Cooper, 2012).
Conclusion
From the above mentioned limelight event it can be concluded that ethics is an important part of
the business. It plays an empirical role in development and expansion of the business. In the give
case study, Michael’s boss engaged in the competitive intelligence theft that can affect the brand
image of the company. The paper explains how ethics plays a vital role in maintaining code of
conduct, CSR and sustainability.
References
7

Business ethics
Ardichvili, A., 2013. The role of HRD in CSR, sustainability, and ethics: A relational
model. Human Resource Development Review, 12(4), pp.456-473.
Banks, S. and Nøhr, K. eds., 2013. Practising social work ethics around the world: Cases and
commentaries. Routledge.
Broad, C.D., 2014. Five types of ethical theory (Vol. 2). Routledge.
Chonko, L.2012. Ethical Theories, Available from
http://www.dsef.org/wp-content/uploads/2012/07/EthicalTheories.pdf. [Accessed on 9 June
2018].
Cooper, T.L., 2012. The responsible administrator: An approach to ethics for the administrative
role. John Wiley & Sons.
Craft, J.L., 2013. A review of the empirical ethical decision-making literature: 2004–
2011. Journal of business ethics, 117(2), pp.221-259.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44). Springer,
Dordrecht.
McElroy, R.W., 2014. Morality and American foreign policy: the role of ethics in international
affairs. Princeton University Press.
Robinson, F., 2011. The ethics of care: A feminist approach to human security.
Russell, D.C. ed., 2013. The Cambridge companion to virtue ethics. Cambridge University Press.
Shafer-Landau, R. ed., 2012. Ethical theory: an anthology(Vol. 13). John Wiley & Sons.
Sorokin, P., 2017. Social and cultural dynamics: A study of change in major systems of art, truth,
ethics, law and social relationships. Routledge.
8

Business ethics
Taylor, P.W., 2011. Respect for nature: A theory of environmental ethics. Princeton University
Press.
Turteltaub, A.2014. Why Risk It? The Motivations of a Whistleblower, Available from
http://complianceandethics.org/risk-motivations-whistleblower/. [Accessed on 9 June 2018].
9