CQUniversity MGMT20134 Business Ethics: Examining Ethical Issues

This assignment delves into the complexities of business ethics and sustainability through the analysis of several case studies. It explores scenarios involving bribery, ethical dilemmas in international business, and the application of ethical theories to real-world situations. The report covers topics such ...Read More

Topic: MGMT 20134 BUSINESS ETHICS AND
SUSTAINABILITY
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Table of Contents
Introduction......................................................................................................................................3
Case Study 1: The Gold and Diamond Watch.................................................................................4
Summary......................................................................................................................................4
Reflection.....................................................................................................................................4
Case Study 2: All Asia Airways......................................................................................................5
Summary......................................................................................................................................5
Case Study 3: Motoring Accident....................................................................................................6
Summary......................................................................................................................................6
Reflection.....................................................................................................................................6
Case Study 4: A Community Affected............................................................................................6
Summary......................................................................................................................................6
Reflection.....................................................................................................................................7
Case Study 5: A Heinous Crime......................................................................................................7
Summary......................................................................................................................................7
Reflection.....................................................................................................................................7
Case Study 6: A Taxing Question...................................................................................................8
Summary......................................................................................................................................8
Reflection.....................................................................................................................................8
Conclusion.......................................................................................................................................8
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Appendices......................................................................................................................................9
Diagnostic Tool Result 1.............................................................................................................9
Diagnostic Tool Result 2...........................................................................................................11
Diagnostic Tool Result 3...........................................................................................................13
Diagnostic Tool Result 4...........................................................................................................13
Diagnostic Tool Result 5...........................................................................................................14
Diagnostic Tool Result 6...........................................................................................................14
Diagnostic Tool Result 7...........................................................................................................15
Diagnostic Tool Result 8...........................................................................................................15
Diagnostic Tool Result 9...........................................................................................................16
Diagnostic Tool Result 10.........................................................................................................16
Diagnostic Tool Result 11.........................................................................................................17
Diagnostic Tool Result 12.........................................................................................................17
Diagnostic Tool Result 13.........................................................................................................18
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Introduction
Ethics and sustainability have a lot of relevance for an organization. The term ethics refers to the
values that the organization inculcates in the workplaces and the moral principles that guide its
everyday operation. Conducting a business involves many ethical factors such as management of
assets, paying employees sufficiently and maintaining a proper public image. All these factors
have to be carefully managed by the organization in order to ensure that it can conduct its
business with integrity and respect. Sustainability, however, can connote a variety of meanings in
the organizational context. It can imply different things in different contexts. The concept of
sustainability can be applied in social, economic or environmental context. The aim of this
assignment shall be to explore the importance of sustainability and ethics in an organization
through the study of case studies from the context of the results of the diagnostic tools.
Case Study 1: The Gold and Diamond Watch
Summary
Ryan, a 24-year old salesman in a wholesaler: Anderson Office Supplies gets lured into a shady
deal with an Arab named Abdul on his first overseas sales trip. Abdul demands a Rolex watch of
$10,000 for which he shall place an order of office equipment worth A$5 million. However, he is
initially discouraged by his boss who was a man of strict ethical principles. But, Ryan
nonetheless went ahead with his plans and took a loan to buy the watch despite having
substantial debts and a mortgage. His dreams come to a crash when he is discovered by Charles
with the watch and is fired from his post and on the other hand he receives an email from Abdul
saying that he is no longer interested in the deal as he has found another supplier.
Reflection
It can be seen that Ryan was seeking out short term gains while being completely oblivious to
the fact that engaging in bribery and other fraudulent practices might seriously hamper his career
prospects and also can bring down the entire organization over some minor issue. I think that if
he had indeed been serious about his career and was keen on establishing a client base in the
Middle East, he would not have been lured so easily by Abdul who might as well have been a
fraud. He would have rather devoted his time there in building up new contacts who could have
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been prospective clients. For this reason, I identify more with Charles than with Ryan in the
story. When I would have my own company I would definitely want my employees to work hard
and not get involved in shady affairs (see diagnostic 6). But merely words would not suffice. I
believe that teaching by example is a more effective way of inculcating values in employees. I
would try to keep everything transparent and straight.
Case Study 2: All Asia Airways
Summary
The case study reveals that the organizational culture of All Asia Airways in China had been one
where contracts were made on the basis of personal relationships built through the payment of
bribery and giving of gifts to important officials. However, when the company expanded to the
USA it was subject to a different set of laws that made the kinds of activities that were rife in
China a legal offence. Here, it was illegal to accept invitations from suppliers or to bribe foreign
officials so as to keep business dealings impersonal and honest. However, when an employee of
the purchasing section, David Leong, was faced with the problem of faulty fuel pumps which
would ground 15 out of 20 planes, it was a moment of shock for David. However, there lay a
solution to the problem where he could secure 10 extra pumps provided he pay a $200,000 bribe
to a client manager of a government owned manufacturer in Europe. David was faced with a
critical situation which brought him at his wit’s end because neither was he very enthusiastic
with going ahead with the deal which would mean imprisonment in case he was exposed nor
could the company afford the losses that would arise from the grounding of the flights.
Reflection
I must say that David is faced with an indeed critical situation where either of his choices will
have consequences of substantial magnitude. However, he still needs to take some time to
contemplate and weigh the odds against each other. Given my perspective which I believe, has a
fairly strong set of internalised morals (see diagnostic 13), I would rather have the planes
grounded than get involved in illicit activities. Perhaps, this choice would initially stunt the
growth of my career within the organization but it would not pose the threat of completely
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destroying it. I had had gone ahead with the bribery I would have prevented the imminent loss
that the organization would face but in the process I would have placed myself in a precarious
position where, if found out, my entire career would have been in shambles. I could always leave
a job and join another provided I have the requisite skills and qualifications. Therefore, I would
rather have the planes grounded than put my career at stake for short term professional gains.
Case Study 3: Motoring Accident
Summary
An expensive new Mercedes was driving through an intersection that had a green light. While
from the adjacent road a speeding car hit the Mercedes despite having a red signal. The
Mercedes, as a result, was damaged beyond repair.
Reflection
The driver of the Mercedes is clearly not the one to blame as he was driving in normal speed
through the intersection when the lights were green. The second driver who hit the Mercedes
deserves the blame for the mishap as it is evident that he was breaking the traffic rules firstly by
over speeding and secondly by not halting his vehicle in the face of red lights. Therefore, the
latter driver is duty-bound to pay compensation to the Mercedes driver because it is because of
his irresponsibility that the disaster has occurred. My judgement stems out of my belief that
people should be responsible towards their personal choices (see diagnostic 1) and try to accept
the consequences that can arise out of those.
Case Study 4: A Community Affected
Summary
The federal government in order to establish a high speed railway line between Melbourne and
Adelaide has to demolish the houses of Hicksville each of which cost around $55,000-70,000.
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But, the houses that are available in the nearest town are about $125,000 each. Therefore, the
government is in a kind of dilemma about how to rehabilitate or pay compensation to the local
population.
Reflection
Such projects where the government has to relocate populations in order to build infrastructure
are indeed very common. The basis for such projects is that the communities that are being
affected by the activities of the government have to be compensated in full. In this context, since
the community has to be deprived of their homes, issues relating to human rights and civil
liberties have come up. The government is duty-bound to rehabilitate the population or pay them
reparations that shall allow them to find residences elsewhere. The problem of the cost is of
secondary importance as human rights should be a priority for democratic governments. As my
diagnostic tool result 6 reveals, I have a substantially high sense of fairness and therefore, I think
I am obliged to take up this kind of a perspective to the problem
Case Study 5: A Heinous Crime
Summary
A middle aged man has been found guilty of several rape and murders of young women in an
American Southern state. The DNA evidence from the scene of crimes implicates him as guilty
and therefore, it can be safely assumed that he is responsible for the crimes. The state has a
provision for either life in prison without parole or death penalty. I, being the judge, have to
decide which punishment is more appropriate.
Reflection
I believe that we are merely humans and we cannot assume the role of the arbitrators of life and
death. My religious background (see diagnostic 12) compels me to view life as something divine
and human beings cannot judge whether a person has the right to live or die. Therefore, I am
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wholeheartedly opposed to the idea of capital punishment. If I were the judge, I would have
chosen life imprisonment without parole.
Case Study 6: A Taxing Question
Summary
It has been found out that man has evaded taxes to the amount exceeding $4 million. Considering
this to be his second offence of tax evasion, the previous one amounted to $2 million, the judges
are required to impose harsher penalties on him or a 6-month duration of Gaol time. However,
the latter punishment has been rarely put of effect by former judges.
Reflection
I think that after the first time the man should have mended his ways and tried to do business in
an honest manner. However, this was not the case and he committed the same offence again.
Although the penalties can be harsher but I believe that merely a monetary penalty shall not
change his ways. He already has a lot of money to spare and a fine would be of no effect for him.
Therefore, he needs a punishment that shall affect him psychologically. Gaol shall hurt his pride
and substantially undermine his prestige in society. Therefore, I shall prescribe gaol time for
him.
Conclusion
Thus, it can be seen from the above assignment that the domain of ethics is a highly complex and
problematic one. There exist many nuances when speaking of ethics and sustainability. While the
two are related on different levels, the primary objective within the organizational framework
would be to incorporate the latter as a part of organizational ethics. From this perspective,
promotion of sustainable practices becomes an ethical responsibility for the organization. The
philosophical implications of such an assumption have to be explored. The principle of
sustainability promotes the preservation of the ecosystem and the protection of various species of
organisms. The needs of not only humans but also of other sentient beings have to be taken into
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account. Thus, the principle of utilitarianism is compatible with that of sustainability. Therefore,
the primary objective for organizations, in this context, would be to develop a business strategy
that integrates sustainable practices in its production mechanisms. In order to run a business
successfully, the actions have to adhere to the accurate kind of ethical theories and frameworks.
Proper ethical standards in workplace have to be ensured and it has to be seen that an appropriate
standard of demeanor is being maintained towards the other employees functioning in the
organization.
Appendices
Diagnostic Tool Result 1
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Diagnostic Tool Result 2
12

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Diagnostic Tool Result 3
Diagnostic Tool Result 4
14

Diagnostic Tool Result 5
Diagnostic Tool Result 6
15

Diagnostic Tool Result 7
Diagnostic Tool Result 8
16

Diagnostic Tool Result 9
Diagnostic Tool Result 10
17

Diagnostic Tool Result 11
Diagnostic Tool Result 12
18

Diagnostic Tool Result 13
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