Reference no: EM133191014

Business Values and Ethics

Case Scenario I

You are running with a business since last many years. Over a period of time you have very good corporate image in market. But unfortunately since last two years your firm is passing through crisis. Your business is suffering from heavy losses. You are planning to wind up your business. Meanwhile one big corporate house has announced a big corporate deal through auction. You have also decided to take part in that deal as it will be a last option for you to save your business. On the day of auction, so many companies have participated for this bid. Committee would declare the result after lunch break. You found the closed envelope of your competitor's bid during lunch break.

a) Will you be ethical in this situation? If yes how? And if no! Why?
In this situation, I would prefer to be ethical and choose either to take the competitor's bid to the auctioneers or the competitor himself. According to the National Auctioneers Association code of ethics that outlines clients' and customers' responsibilities, I would inform the whole gathering about the situation. After this, it would be wise for me to demand every party involved in the process to declare their conflict of interest. Moreover, I would not present the competitor's bid to the auctioneers in secrete so that we can agree on keeping the information away from the other parties. Further, I will not keep the found bid to myself so that I may win the bid. Additionally, I would hold the auctioneers responsible for such misconduct then ask them to try to perform their duties in honesty, fair dealings, and integrity

b) If you be ethical, how you will survive your business.

Upholding ethical standards, in this case, does not mean one is going to lose the bid to the competitor. Upon winning the bid, more physical assets will be brought into the business, which can increase the business net-worth, thus attracting more investors. However, upon losing the bid to other competitors, I would realign the corporate business strategies to the business goal that will make every employee in the organization work towards achieving the set business goals. Further, I would invest in teamwork in the organization. Collaboration in any organization promotes relationship and talent identification, which will be appropriate to realigning individuals towards their talent ideologies.

Case Scenario II: Discrimination in the Workplace
Marian, a top graduate from Loyola in Humanities, was hired by a major corporation into a management position. Marian finished the corporation's management training program top in her group, and is performing above the norm in her position. She is really enjoying her work.
As a woman she feels isolated, as there are no other women managers and few women in her area. One night at a company party she heard a conversation between two of her male co-workers and their supervisor. They were complaining to him about Marian's lack of qualifications and her unpleasant personality. They cursed affirmative action regulations for making the hiring of Marian necessary.
Marian is very upset and wants to quit.
Questions:
a) Should Marian quit?
Marian should not quit her position because none of the junior workers under her has complained about her style of leadership; neither does she underperforms; therefore, there are no grounds for Marian' to quit.
b) Are her co-workers correct in their evaluation?
The co-workers are wrong and unethical to judge Mariam basing on the affirmative action regulation.
c) Should Marian confront the co-workers?
Marian should not confront the co-workers since she was not invited to the discussion. Additionally, facing co-workers will create a new rift in the management spectrum through conflict activation.
d) Should Marian file a discrimination suit?
Yes, Marian should file a discrimination suit since the allegation as weighty and is based on gender incitement. The discrimination suit will help the masculine managers cope up with Marian as their fellow manager but of the feminine gender. Further, the discrimination suit will help Marian to fight for gender balance in the management.
e) Should Marian go to the supervisor?
Yes, Marian should go to the supervisor since the supervisor is the only superior individual after the management. Further, going to the supervisor will portray Marian as an ethical individual through following the channels of communication. Further, the supervisor will also have a chance to listen to Marian's side of the story, thus eliminating biases.
f) What else could Marian do?
Marian could also write a formal application addressing the concerns in the organization as a manager of the feminine gender to not only the supervisor but also the board of management.

Case Scenario III: Employee Absence

Joan, an employee of Great American Market, was warned about her excessive absenteeism several times, both verbally and in writing. The written warning included notice that "further violations will result in disciplinary actions," including suspension or discharge.
A short time after the written warning was issued, Joan called work to say she was not going to be in because her babysitter had called in sick and she had to stay home and care for her young child. Joan's supervisor, Sylvia, told her that she had already exceeded the allowed number of absences and warned that if she did not report to work, she could be suspended. When Joan did not report for her shift, Sylvia suspended her for fifteen days.
In a subsequent hearing, Joan argued that it was not her fault that the babysitter had canceled, and protested that she had no other choice but to stay home. Sylvia pointed out that Joan had not made a good faith effort to find an alternate babysitter, nor had she tried to swap shifts with a co-worker. Furthermore, Sylvia said that the lack of a babysitter was not a justifiable excuse for being absent.
Questions:
a) Was the suspension fair?
The suspension was fair because Joan had already exceeded the leave limits and had a trend of being absent without an apology to the supervisor. Further, Joan had already received a warning for her tremendous absenteeism action.
b) Did Sylvia act responsibly?
Yes, Sylvia acted responsibly because, as a supervisor, she is supposed to make sure Joan serve within the organization acceptable standards.
c) Should Joan be fired?
Joan should be fired from her work because she had gone against the organization's set standards, in addition to defying the supervisor's directives.

d) Should the babysitter be fired?
The babysitter should not be fired since she has not recorded any case of malpractice except on the occasion she communicated her intention of not going to work to her boss Joan.
e) Was Sylvia fair in her action?
Yes, Sylvia was fair in her action since Joan knew her work trend and insisted on not going to work despite Sylvia's action communication.
f) Is there a solution for working mothers?
Yes, there is a solution for working mothers. Working mothers should be given the first three months of their delivery, paying leave. Further, they should also be given an allowance to come to work with their children and their babysitters so that they can attend to their children during break times.
g) Should working fathers take turns staying home?
Yes, working fathers should also take turns staying home to help the mothers look after their young ones.

Case Scenario IV
Sandoz Nutrition Corporation is a subsidiary of the Swiss pharmaceutical giant, Sandoz Ltd. Sandoz, based in Minneapolis, Minnesota, began manufacturing Optifast 70, a liquid meal-replacement weight loss program in 1976. The six month program is designed for people who are at least 30 percent or 50 pounds over their ideal weight. Health problems often accompany excessive weight. Optifast provides an opportunity to get rid of the weight fast.

The Optifast program is only available through doctors, hospitals, and medical clinics; a prescription is required to purchase the products. The Optifast program typically begins with the patient being placed on 420 to 800 calorie diet per day of liquid protein for 12 to 16 weeks. Calorie intake is then increased to 1000 or 1200 calories per day for the remainder of the program. The total cost is between $1400 and $2800. Optifast sales grew slowly following its introduction as the medical community and consumers became aware of the program. Sales continued to build slowly until mid November1988. Then Oprah Winfrey announced on her TV talk show that she had lost 67 pounds using Optifast. She appeared on the program in size 10 jeans to prove her point. Here was a celebrity endorsing Optifast without being asked for or paid! Within hours Sandoz received more than 200,000 phone inquires about the Optifast diet program.

The firm does not publish sales figures, but they forecasted a sales increase of from 25 to 30 percent during the six weeks following Oprah's announcement. In 1989 Sandoz launched a print advertisement program, mostly in professional journals. Its promotional brochure and ad claims included: (1) " The one that's clinically proven safe and effective" and (2) "You can call the Optifast program today, and have all you need to control your weight for the rest of your life." Unfortunately for Oprah, she regained 17 pounds during the first year after she completed the Optifast program. Studies at the University of Pennsylvania suggested that people who undertake quick weight loss programs such as liquid diets are likely to experience weight rebounds. Studies at the University of Michigan indicated that as many as 90 percent of dieters regain weight within five years after losing it. Liquid diets have also been linked with dizziness, headaches, nausea, gallbladder problems, and irregular heartbeat. Thus, there appears to be some difference between claims and use experience.

Questions:
a) Were any ethical norms or principles violated by Sandoz?
Sandoz violated the ethical principle of beneficence and non-maleficence. Beneficence means doing good for your clients, for example, providing them with immunization in case the product is body reactive. Non-maleficence entails not harm either intentionally or unintentionally. Therefore, Sandoz violated this principle by not communicating the long-run effect of the product they were producing.
b) Are liquid diet products ethical products? Justify your answer.
Liquid products are ethical products since their effects can be measured without further processing.
c) What moral responsibility might Sandoz have considered when developing its promotion messages for the customers?
The moral responsibility that Sandoz considered is safe and effective. In as much as the product is useful in that it reduces body size in a short span, its safety is not yet guaranteed. Further, the organization commits the moral responsibility of lying to potential clients about the product solving their weight problems for the rest of their life. From the studies' perspective, the product has been found to express quick weight regain on individuals, and it has some health-related problems.

Case Scenario V

Arthur Edward Anderson (1885-1947), the founder of Arthur Anderson & Co. must have turned in his grave in 2001, as the auditor firm founded by him became a synonym for scandal in the accounting profession. On 15th August 2001, Sherron Watkins, an employee of Enron, questioned the company's accounting practices, in a single-page letter to its CEO. Enron, the energy giant that ruled the world, and its auditor Arthur Anderson & Co., became the ridicule of the world. In early 2002, the US Justice Department began criminal investigations into Enron's bankruptcy. In 2002, Arthur Anderson was convicted by the lower and appellate courts for obstruction of justice. The firm had worked hand in glove with Enron and cooked its account books. The audit firm that once had an 85,000 strong workforce, now had closed offices and business interests around the globe. The firm's name is so tarnished that there is no other business going on in it, other than attending to over a hundred civil suits.

Questions:

(a) What do you think can be the outcome of accounting fraud to society and business at large?
Accounting fraud has not only an economic impact on the society and business but also social, emotional, and physical effects. Accounting fraud results in societal revenue denial since every time the organization will be recording fewer sales resulting in less tax remitting. Further, it can deny the society, such as the government and financial supporters, credible information that can lead to the proper valuation of the organization's financial capacity. Further, to the business, it impacts on the business group and profit-making.
(b) Why do you think that the history of accounting fraud repeats itself, such as so many frauds which we have after the Enron scandal?
A company's book of account is essential in a business setup as it speaks volumes about the organization. Therefore, accounting fraud usually takes place due to evidence hiding, funds misappropriation, or even liability claims.

Case Scenario - VI: Purchasing Ethics
J.R. accepted a position at Cripple Creek Vocational University and he and his family made a permanent move. Soon, J.R. was promoted to Administrative Vice President, overseeing the purchasing department of the University. His oldest son, Jim, got a good job in educational equipment sales at Tiddley Computer Corporation in Fort Worth.
As Vice President, J.R. quickly saw the need for 4 to 5 computers in his office. Although CCVU had a bidding policy, J.R. purchased Tiddley Corporation's computers direct from Tiddley for about $3500 each, when IBM clones were selling for around $2000 and the clone had more promising features than the Tiddley. Jim handled the sale and received a healthy commission on the sale. If the purchase had gone through the normal bidding process, the TC model would not have been selected. Tiddley's local Cripple Creek franchise dealer objected to Tiddley Corporation that his protected franchise had been bypassed in the deal.
Questions:
(a) Since J.R. was over the purchasing department and had final decision authority, should purchasing have gone through the normal bidding routine?
(b) Is it acceptable for a V.P. to bypass the normal routine to do business with a family member?
(c) Was J.R.'s decision not to request bids an ethical choice?
(d) What should the college purchasing agent do?
(e) Should anyone else at CCVU have any interest in this activity?
(f) Has Tiddley's Cripple Creek franchise owner been wronged?
(g) Should Jim have made the sale? Received a commission?