In-depth Analysis of Business Ethics Case Studies and Implications

This assignment presents a series of business ethics case studies and provides detailed analyses and proposed solutions for each. The first case explores the dilemma of a product manager choosing between a low-cost supplier with unethical labor practices and a more expensive, ethical supplier. The analysis emphasizes the complexities of balancing profit with social responsibility. The second case discusses a manager's ethical obligation to his friend versus his company when he learns about a drug's side effects. The suggested solution involves a strategic approach to mitigating potential financial damage while prioritizing the friendship. The third case examines an HR manager's dilemma of choosing between a candidate with a better resume but controversial social media presence and a less qualified candidate with a clean online profile, arguing for a focus on professional qualifications. The fourth case critiques the organic food industry, highlighting potential environmental harms and misleading advertising. The final case addresses the unethical practices in cotton production, calling for retail brands to take a stand against exploitative labor conditions and promote awareness. Overall, the assignment underscores the importance of ethical considerations in various business contexts.

Running Head: Business Ethics
Business ethics
Case studies

Business Ethics 1
Contents
Case study 1................................................................................................................................................2
Case study 2................................................................................................................................................2
Case 3..........................................................................................................................................................3
Case study 4................................................................................................................................................4
Case study 5................................................................................................................................................4

Business Ethics 2
Case study 1
The first case refers to the dilemma faced by the product manager of a toy company. On one
hand, the Thailand supplier is charging one third of the price charged by the original Portuguese
supplier. However the working condition at Thailand include young children and women and the
sweat shops are an unfortunate reality. Every business runs for a profit. Even though the people
of Thailand are working in really bad conditions. The truth is that if they do not give business to
us, then they would give it to someone else. Therefore not taking business from them will hurt
their source of employment but also adversely impact our business’s costs.
In the increasing competition in the world, it is important to stay ahead of the competition.
Moreover, the people in Thailand are currently not qualified enough to perform any other task.
They are working and earning hand to mouth. Hence, if the little employment they have is taken
away from them, then it would be increasingly difficult for them to function.
Lastly, as a product manager, if this suggestion is not brought forward at the moment, then some
other product manager will address the same sometime in the future. This will even take away
from incentives and recognition in the office. It is impossible to ignore the plight of those
sweatshop employees but there are various issues where little can be done from our end.
Case study 2
In the midst of our competing world and time consuming professional lives, we often forget to
pay attention to other important relationships in our lives. Our friendships form an integral part
of our lives. This case throws light on the dilemma faced by a PCC manager. On one hand, the
manager should tell his best friend about the lethal side effects of a company introduced drug and
make him sell his shares of PCC. On the other hand, the friend works as a mutual funds agent
and given his job, he would also ask his clients to sell the shares and earn a large bonus.
However, this will adversely impact the firm and its share price will crash.
In such a case, the mutual understanding between the two friends plays a big picture. The
manager must surely tell his friend about the news as it is mentioned that he is a best friend from
college. Obviously the job came much after. However, over drinks, the manager must also try to

Business Ethics 3
address to Freddie to not discuss the issue with his clients as yet. They can even strategize and
work a way around casually asking the clients to sell half of the shares. This would reduce the
impact of the loss faced by them once the price crashes. Also when clients retain half of their
shares, PCC share price would not be as adversely impacted. At the end of the day what is more
important is that Freddie and the manager have sold all their shares and they are not facing a
direct loss. This is why the understanding and trust between the two friends is highly crucial. A
sense of ownership for your workplace is always important but a professional life should not take
away from your personal relationships.
Case Study 3
Social media is a platform which often speaks more about a person than any interview can. This
case refers to the ethical dilemma faced by an HR manager at AllCure Pharmaceuticals. The
issue here is about selecting one from two candidates. One who is better on paper but has a ton of
controversial pictures on her Facebook. Second one is not as good on paper but as a fairly decent
Facebook profile which is evidence of her effective social skills and the fact that she has
travelled around the world.
In such a scenario, the HR manager must select the candidate who she thinks is better on paper.
This is because not everyone puts their entire life on social media. In fact social media is very
often used to create an image in the minds of the people. The candidate might be doing anything
in her personal life, be it taking off her tee-shirt or taking illegal drugs. This should not affect the
organization. On the other hand, she is careful enough to make sure that her Facebook account
pictures are not available to the public at large.
It is important to select the candidate who is better on paper and who has been more impressive
during the recruitment process. In this case, it is also important to note that social media does not
always reflect a true picture of a candidate. It is highly possible that all those activities took place
way in the past. It is wrong to judge someone on the basis of their social media profile let alone
reject them for a job for the same issue. Therefore, the decision must be made based on the
candidate’s skills and not their social media profiles. If social media is even considered,
LinkedIn is the only professional platform and that could be considered. But Facebook and
Instagram can often tell little about any person.

Business Ethics 4
Case study 4
The fourth case deals with an ongoing issue of organic foods. It is recent become trending to eat
food which is gluten free, lactose free and various kinds of organic. However, the reality is
largely different. Today people have a purchasing power and they can afford to pay more for
food. But what is the whole point of paying extra for food which is not even yielding that kind of
a benefit. The only benefit from the organic food is the benefit reaped by organic food
companies who have a small cost of production and high profit margins.
These organizations also leave no stone unturned in promoting the benefits of eating organic
products and creating a mindset of healthy eating. This has led to increased usage and
consumption of organically produced products. Organizations are simply minting money by
wrongly informing consumers about the benefits of organic food. For companies, it is important
to understand that this extensive promotion as well as production of organic food is harming our
environment and hence ourselves. The production must be capped at a certain point and correct
forms of advertising must be used to ensure that people are rightly informed about the product.
Just like cigarette packets have a warning label. Organic foods must have a small warning about
their hazards to the environment. Governments of various countries must also restrict the growth
of these products in regions. Advertising companies must be more aware and must work on
honest advertising without fooling the customers about the same. Large super markets must limit
the extent to which organic foods would be sold. This will automatically lead to reduced sales
and hence reduced supply.
Case study 5
The use of cotton is highly common and widespread across the globe. No matter what we wear,
cotton is an irreplaceable part of it. However, the conditions in which cotton in grown and the
lives of the labors that grow cotton is miserable to say the least. This is a real problem faced and
must be addressed at the earliest. There are various media channels that have already reported the
issue.
However, unless leading brands stop procuring cotton from these areas, it is difficult to address
the issue. There are many retail brands who require cotton. It is important that these brands avoid

Business Ethics 5
or completely stop procuring cotton from these regions. A team should be sent to ensure better
living conditions in these areas. The price offered to these labors must be increased and better
living conditions should be offered. If these brands automatically start paying those more, then
their living conditions would increase by default.
But at certain point of time, these brands would have to take a stand and fight this evil together.
Else it will be impossible to change the situation by efforts of just one or two organizations.
Strong efforts, government backing and media support is what will enable these businesses to
improve the conditions of these areas. Today there are various retail brands who have a large
presence in the global market. They must take advantage of their reach and inform people about
the conditions there. Increased awareness will lead to steps being taken to improve the same.