Verified Document

Business Ethics Case Study Research Paper

Ethics Lauren is faced with a choice between letting a substandard product go through, which would require her to lie, and reporting, it above her supervisors' heads, which would damage her relationship with those supervisors. As there is no outcome that does not result in harm, this represents a true ethical dilemma (McConnell, 2014). This is basically the prisoner's dilemma. Yet, there are some subtle differences between this and the prisoner's dilemma that allow this issue to be resolved.

The basic ethical issue here is that the company has a contractual obligation to its customer. Moreover, depending on the nature of the defect, passing this product could put human lives at risk. But more clearly, the two immediate supervisors are asking Lauren to commit fraud. Unlike in the Prisoner's dilemma, she hasn't yet committed a crime, so there is still time to avoid negative consequences entirely. Lauren has to file the report honestly, and let the chips fall where they may. If the supervisors pass along the product that she rejected, she has a duty of care to the shareholders to inform senior management.

Stakeholder Analysis

There are a number of different stakeholders in this scenario. Lauren, the two bosses, the senior management, and the client are all stakeholders, but so too are the customers who will end up using the product. They are perhaps the most at risk, depending on the nature of this defect. There are shareholders for both companies, regulators and employees for these companies, all of whom will be affected. The most important stakeholders, however, are the ones who are either directly affected or have the potential to be directly affected. That means Lauren, the client and the end users who might suffer injury from this defect. The two bosses are not as important as stakeholders go because the outcomes that they face are not the result of Lauren's choice, but their choices. If senior management comes down on them, then that is because they violated company policy. Senior management is on the next tier of stakeholder, just below. But...

Theoretically, Lauren owes a duty of care to the shareholders, but she is looking at the big picture here -- a major product defect that management covered up but that eventually kills someone is a lot more destructive that telling the engineers to raise their game, or seeing if the customer is okay with the current specs and test results.
Ethical Approaches

This scenario is a question of an illegal act -- fraud -- so in that sense it is merely a formality to examine the ethical approaches. Let's get real -- if Lauren is found to have committed fraud she could go to jail and be open for suit in civil court. The scenario was written to frame this as a dilemma in the sense that each choice Lauren makes will have some sort of negative outcome, but in the real world, it is not a dilemma normally to choose between breaking the law for one's own self-interest and not breaking the law.

The utilitarian perspective is fairly simple, as a result of the facts of the case. There is risk, if Lauren passes the product, to the end user, the client, and ultimately to the shareholders of her company and the other company, to say nothing of the she faces committing an illegal act. The trade-off is marginal at best -- Lauren gets to remain buddies with her bosses.. The utilitarian recognizes that there is almost no upside to this choice because both companies are likely to suffer, the minute somebody gets hurt from this product.

The rights approach holds that humanity must be treated as an end, not a mean. The risks that would be put upon the end users and the client are untenable under this philosophy (Velasquez et al., 2014). This is because to approve the product would be to put people at risk, simply as a means of increasing one's own profit, and that is entirely incompatible with the rights approach.

The justice approach seeks to resolve ethical dilemmas by treating people as equals when they are. In other words, this approach is about fairness. In theory, Lauren could rationalize that…

Sources used in this document:
References

Kuhn, S. (2014). The Prisoner's Dilemma. Stanford Encyclopedia of Philosophy. Retrieved November 23, 2015 from http://plato.stanford.edu/entries/prisoner-dilemma/

McConnell, T. (2014). Moral dilemmas. Stanford Encyclopedia of Philosophy. Retrieved November 23, 2015 from http://plato.stanford.edu/entries/moral-dilemmas/

Velasquez, M., Andre, C., Shanks, T., Meyer, M. (1996). Thinking ethically: A framework for moral decision making. Markkula Center for Applied Ethics. Retrieved November 23, 2015 from http://www.scu.edu/ethics/practicing/decision/thinking.html

Velasquez, M., Andre, C., Shanks, T., Meyer, M. (2014). . Rights. Markkula Center for Applied Ethics. Retrieved November 23, 2015 from http://www.scu.edu/ethics/practicing/decision/rights.html
Cite this Document:
Copy Bibliography Citation

Related Documents

Business Ethics Case Study --
Words: 590 Length: 2 Document Type: Essay

Michael has no moral "right" to undermine their loan evaluation process even if he genuinely believes that the lender will not be harmed by the deception. After all, beliefs are always subjective and people in Michael's position can be very sure about what they genuinely believe but still be wrong. One need look no further than the U.S. housing market in 2007 to see what can happen when peoples' beliefs

Business Ethics Case Study -- Harassment on
Words: 606 Length: 2 Document Type: Essay

Business Ethics Case Study -- Harassment on the Job Applicable Ethical Systems The principal ethical system at issue in this case is the concept of equal rights and opportunities and, even more fundamentally, the obligation of employers to protect all rights of their employees from malicious conduct and abuse from coworkers (Halbert & Ingulli, 2008). Employment law expressly prohibits harassment at work in connection with gender and also absolutely requires management to

Wal-Mart Business Ethics Case Study
Words: 698 Length: 2 Document Type: Term Paper

According to many sources and the allegations in the class action lawsuit decided in its favor in 2001, Wal-Mart systematically discriminates against women in its management training and promotional practices; it has illegally refused to hire disabled job applicants; it pressures employees not to unionize; and it has knowingly hired illegal aliens by the hundreds (Cram, 2005; Pea, 2011). That class action suit was decided in Wal-Mart's favor strictly on

Ethics Case Study: To Rescue Others at
Words: 994 Length: 3 Document Type: Case Study

Ethics Case Study: To Rescue Others at What Risk? What is the Ethical Dilemma? An ethical dilemma in the words of Fletcher, Holt, Brazier, & Harris (1995) "occurs when there are at least two possible courses of action that may be taken but each option is problematic" (p.7). With regard to the case study under consideration, the ethical dilemma each and every individual who has succeeded to make it to the roof

Business Ethics Case the Examination
Words: 4454 Length: 15 Document Type: Case Study

Alford reports that "for some, the earth moves when they discover that people in authority routinely lie and that those who work for them routinely cover up. Once one knows this, or rather once one feels this knowledge in one's bones, one lives in a new world. Some people remain aliens in the new world forever. Maybe they like it that way. Maybe they don't have a choice." (Alford,

Ethics Case Study -- Roche
Words: 499 Length: 2 Document Type: Term Paper

However, if it were the case that the Chinese legal system protected the innocent and executed only those criminals who have been properly, duly, and fairly convicted and sentenced for crimes appropriately punished by execution, it is much harder to argue against the use of their organs to benefit society. From an objective point-of-view, once a person dies, it is wasteful not to use his or her organs to

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now