Ethical Dilemmas of Korean Motors of North America - Case Study Example

Module Executive Summary Ethical dilemmas require ethical considerations to solve. They are quite common but some dilemmas result from far-reaching ethical implications, and the case study presents one of such a kind. Being the vice-president of sales at Korean Motors of North America the decisions I make have extensive repercussions on the company. The dilemma here is whether or not to accept the adoption of a new sales model that will demand relaying of adverts full of falsehoods and exaggerations thereby presenting a misleading image to the consumers. I will not accept this move and have decided to refer my resentment to the home office back in Korea. Business Ethics Ethical dilemmas, especially for the top management, are common and as the US vice-president for sales at Korean Motors of North America such situations can present immense challenges. The company’s footprint in this market had for ten years progressed quite well and was turning considerable profit margins. This has been attributed to the vigorous advertising and double warranty offers as compared to competitors. The new proposal to drastically change focus from the low-cost model to young nouveau riche has come as a huge surprise. This is made worse by the fact that the advertisement campaign geared to the change is supposed to edge on deceiving customers by highly exaggerating the aspects of the cars. I totally do not agree with this approach and, therefore, am faced by a number of choices on the way forward. I can take the concerns to the home office in Korea, abide by the new sales model or simply leave the company and search for a new job. I will assess the options based on the various theories so as to arrive at a conclusion on what is the best course of action at this point. The utilitarian approach, as developed by Joan Stuart Mill, states that “actions are right in proportion as they tend to promote happiness, wrong as they tend to produce the reverse of happiness” according to Irwin (27). Happiness under this theory is regarded as the presence of pleasure with absence of pain while unhappiness is the reverse (Quinton 2). My dilemma emanates from the fact that I feel the decision to change the sales model will lead to my unhappiness and those of the consumers. The brand image is already stable with the low-cost model and lengthy warranties. This is what I am also, as the vice-president, known for in the market and have been preaching the model to every employee. Distracting this flow will definitely lead to loss of trust from the market and destabilize the current mission that was well entrenched in every employee’s mind. This theory can be helpful since it refers one to the welfare of self and that of others in terms of whether an action will derive happiness or unhappiness and, therefore, leading to a judgment that will be acceptable by the key stakeholders. Deontology, on the other hand, rests judgment of an action morality based on whether it followed laid down rules and procedures. In short, deontology finds an action moral if it followed laid rules and vice versa (Brook 436). The action, in this regard, is less important than its consequences. In my scenario, this theory is too plain to help in determining my next course of action. This is owing to the fact that by abiding by the new directives, I will be totally disregarding my moral obligation toward the company and the customers. It is this blind following of rules that am against and the basic cause of the current dilemma. As expressed earlier, the company will be bound to lose a wide customer base owing to this sudden change. The rules in this regard should remain unchanged. This theory can be helpful in case my task was to further strengthen the company’s brand based on the current strategy of low-cost marketplace as a target since it has already proved profitable. Ethical intuitionism is based more on moral beliefs and that one’s intuition should be aware, without inference, of moral truths. This is a more subjective viewpoint of issues that cause ethical or moral conflicts. This means that people innately harbor moral knowledge on issues which is not necessarily out of daily interactions or experiences. In respect to my case, I can comfortably say that, to a large extent, this innate knowledge of moral values plays a huge role in my opposition of the new sales model which is meant to sell success to the young nouveau riche. Personally, I do not entertain situations that clearly require one to deceive, give falsehoods and unnecessarily exaggerate claims simply to record sales. If the product is good enough, an extensive and rigorous marketing campaign will sell the product without giving falsehoods or illusions to customers (Lamb, Hair and McDaniel 219). Actually, if this approach is adopted, the chances of the company surviving this competitive U.S market will drastically reduce. It will take a year or two for customers to realize that these are the same products as before only that the marketing has changed to deceive and con them with high prices. The theory guides one to follow their intuition and thus, their inner judgment which is critical for those in top-management positions. Virtue ethics requires one to neither follow rules nor aim at deriving desirable consequences. Instead, the theory encourages one to deliver judgment on a dilemma based on character. It presses that one should concentrate on upholding virtuous characteristics (Otsuka 125). For example, honestly is a virtuous characteristic. This theory, which was advanced by Aristotle, however, requires these traits to be effortless out of them having been nurtured over time. One of the requirements of the new Ad campaign is to give falsehoods and unlimited exaggeration of facts to consumers. This is totally against virtue ethics to change the company’s branding supposedly to achieve a different competitive edge. Based on this, I would not go ahead to commission the new branding and must taken action to revert this trend for the sake of the company and the consumers. Virtue ethics is quite valuable in fostering ethical behaviors in any workplace since it considers the best course of action from a virtuous viewpoint. If anything goes wrong with me as the vice-president of sales, I will be held responsible for the results thereof. To a large extent, the new directives are also illegal in that they are clearly meant to deceive through blatant lies. Any resultant action will also cause harm to consumers (Martin 95). It is important to ask to whose benefit is it that the new model is adopted. Another question will be how sustainable would be the falsehoods and exaggerations. The decision to adopt the new strategy will be costly to my career, in the long term, since the company most likely will collapse. The change will be costly to implement and can result in total loss of trust in this very-promising U.S market and thus should be avoided at all cost. Having considered all the directing ethical theories, I have decided to take my concerns to the home office in Korea. From a utilitarian point of view, I am inclined to make the customers happy which results to happiness and growth in the organization. The company better sticks with the current mission, rules and procedures than adopt new ones that are far from ethical. Adopting the new rules will lead to company’s collapse and it would be better to resign if my fight to retain the current model fails. Ethical intuitionism directs me to only pursue the current low-cost marketplace model that is true to its Ad messages and matches product specifications. Virtue ethics requires me to exercise honesty for the good of all. My position will be misconstrued to mean I am rebellious or aversive to changes. However, this is a shallow perspective to consider bearing in mind the consequences that the decision holds with regard to the future of the company. I intend to present a convincing argument to the company’s high-level management in Korea within the shortest time possible aiming to block the changes that, if adopted, will cripple Korean Motors of North America. Works Cited Brook, R. “Deontology, Paradox, and Moral Evil,” Social Theory and Practice, 33.3 (2007): 431-40. Print. Irwin, T. The Development of Ethics: A Historical and Critical Study. Vol. 3, From Kant to Rawls. Oxford: Oxford University Press, 2009. Print. Lamb, Charles., Hair, Joe., and McDaniel, Carl. Essentials of Marketing. Cengage Learning, 2011. Print. Martin, Glenn. Human Values and Ethics in the Workplace. Lulu. 2011. Print. Otsuka, M. “Saving Lives, Moral Theories and the Claims of Individuals,” Philosophy and Public Affairs, 34.2 (2006): 109-135. Print. Quinton, A. Utilitarian Ethics. London: Duckworth, (2007): 2-3. Read More