Scenario analysis in strategic planning and decision making

¶ … stakeholders in the scenario?

The stakeholders in this case are the employees of Supernova Industries and their IT staff because their performance and effectiveness will be affected by the decision. The manager of my company is another important stakeholder because the decision will affect his success at increasing the business for the firm. Finally, I am an important stakeholder in this situation because my professional judgment and integrity will be affected by the decision taken in this case.

b) What are the facts in the scenario? Do not copy and paste the scenario. Rather, the facts should be a numbered list of summarized, relevant points.

Supernova Industries have contracted with us to develop a business system for them.

Their staff is supposed to take over the support function after the launch and training of the system.

According to my professional judgment, the Supernova team will not be able to handle the support function and will continue to depend on our company.

4. An alternative plan is available that will increase the budget but will save Supernova in payment for long-term support service.

5. This information has been communicated to my manager.

6. The manager prohibits me from making this recommendation to the client as not doing so would result in increased business in the long-term.

c) Which facts raise ethical concerns? Why?

The facts that raise the ethical concern include that my manager and me are in possession of information that could potentially influence the decision of our client, Supernova Industries, who have reposed faith in our professional judgment and services. Sharing the information with the clients will result in significant savings to them but a loss of potential revenue for our company. My manager, who has authority over me, has expressly forbidden me from sharing this information with the client.

d) What is the single major ethical dilemma that must be resolved immediately?

The major ethical dilemma that must be resolved is whether I should obey my manager and withhold the information from the client. Obeying my manager will allow me to save my job and likely to benefit from the increased business in the form of support services. However, it will also make me feel guilty and damage my credibility if the fact is revealed later on. Not obeying my manager might cost me a promotion, pay increase or even my job, but it will increase my professional credibility and will make me personally satisfied that I was honest with my client and had their best interests in mind.

e) What are the rights and duties of each of the stakeholders?

The rights of the client are to receive complete and accurate information that could potentially influence their decision to do business with our company. They have a right to expect us to make decisions in their best interest. They have a duty to pay us duly for our services as per the contractual terms. My manager has the right to allow or prevent me from taking any action that could affect the organization negatively. He has the duty to be obeyed by me. I have the right to exercise my professional judgment and be heard by my manager. I also have the duty to obey my manager unless he or she requires me to do something illegal.

f) What guidance (if any) does the Australian Computer Society's code of ethics provide in this situation?

The Australian Computer Society's Code of Ethics (ACS, 2012) describes six values that should guide my decision making. The first value states that the public interest is to take primacy over personal and business interest. The question arises whether the interest of the client is a business interest or a public interest. The second value requires me to take steps that will improve the quality of life of those affected by my work, including my manager, colleagues and my clients. The third and fourth steps require me to represent my knowledge and products honestly and to work diligently for my stakeholders. The sixth value requires me to uphold the integrity of the ACS and its members. In addition, clause A2 of the ACS Code of Professional Conduct (ACS, 2012) requires me to desist from deceiving my clients for short-term gains. Clause A8 requires me to innovate on the task to make it more efficient for the client and should make the client aware of it.

g) How would you resolve the dilemma identified in point (d) above? Justify your decision.

I would resolve the dilemma by stating my inability to do as my manager requests. My manager is an important stakeholder in this case and I have a duty not to undermine his authority. The Australian Computer Society's Code of Ethics places great emphasis on being honest and diligent in the interests of the stakeholders. The client will be most affected by the decision and their interest is both a public interest and a business interest. Moreover, the integrity and respect of the ACS is also at stake. Therefore, I will state that I am unable to do as my manager asks me to. It is then up to him to take the next step.

h) How are each of the stakeholders listed in (a) above affected by your decision?

My manager would be informed about my inability to comply with his instructions and would be able to take the next step to protect his business interests. I would have resolved the ethical dilemma by having refused to withhold information from the client and making my intentions clear to my manager. The client is potentially saved from having to incur the additional costs of service fees.

i) What should have been done to avoid the dilemma in the first place?

To avoid the dilemma in the first place, there should have been a thorough analysis of the alternatives and the capabilities of the IT staff at Supernova Industries. This would have prevented the inappropriate solution from being recommended. There should have been a clear strategy and process for developing and evaluating the system for the client. Regular meetings with the client should have been scheduled so that the client and their IT staff could monitor the progress.