Business Law: Business and Society - Case Study Example

In order to critically analyse the ethical issues raised in one of the four cases studies given, it is imperative to begin by defining the concept ofethics so as to gain a clear understanding of the whole concept. Basically, the term ethics is primarily concerned with distinguishing between something that is good and bad in the way individuals behave. On the other hand, business or organisational ethics refers to the values, principles and standards that operate within business and these attempt to make a distinction between something that is morally good from bad (Rossouw 2004). The concept of business ethics mainly derive from the value system obtaining from a business set up. Basically, values are described as the “essential and enduring tenets” that help define the company and are “not to be compromised for financial gain or short term expediency,” (DesJardins 2006:5). In case number four, it can be noted that Sam has raised a very important issue about one of Moyuka’s bestselling car model where there have been reports of isolated incidents which involve the model’s accelerator pedal which can lead the cars to speed dangerously out of control. However, a briefing from the head of the product quality shows that there were few and isolated cases hence this cannot be an issue of safety concern but quality. Secondly, he points out the financial implications on the organisation in the event of a global recall of all the models already on the market globally hence recommends to put the matter to rest. Therefore, in this case, the ethical issue raised is that the car manufacturer has sacrificed the safety of the people who will buy the cars for financial gains. Indeed, there have been isolated cases which means that something ought to be done for the sake of safety of the majority of the people than simply sweep the matter under the carpet as if there is nothing that has happened or been discovered. The utilitarianism and virtue theories of ethics will be used in this case to analyse the study given. “The utilitarian ethical theory is founded on the ability to predict the consequences of an action. According to this theory, the choice that yields the greatest benefit to the majority of people is ethically correct compared to the choice that only benefit the organisation as well as its financial gains,” (Rainbow N.D). The theory actually encourages the people to work towards the outcomes that will give an advantage to the majority of people likely to be affected by certain actions. Drawing from the case study of Moyuka, it can be noted that the decision given by the head of the quality department is not favourable to the majority of people likely to be affected by that particular action to suppress the investigation of such a critical issue. Indeed, being a manufacturer of cars, Moyuka has an obligation to ensure that they put the safety of the people first. This stance must not be sacrificed for financial gains at all costs since this will negatively impact on the safety of the people, both users and non users of the defective vehicles. Failure to do this will also negatively impact on the credibility of the organisation in the long run. As far as the concept of ethics is concerned, this theory should guide as a framework upon which car manufacturers should operate as they are supposed to give priority to the majority of the stakeholders who will be affected by their operations. In view of the utilitarian theory, the organisation ought to be guided by its values which are regarded as beliefs that often incline businesses to act in certain ways which are different from the others. Values range from financial, political as well as religious among others and these often shape the way an organisation operates towards the attainment of its goals. In pursuing these different values in business, there is need to take into consideration the concept of business ethics which is more concerned with serving the ends of human well being. In this case, it can be noted that Moyuka has deviated from its stated values whereby it is supposed to be seen taking a leading role in championing the cause of the well being of the human beings that will be affected by its operations. The following assertion concurs with the above argument, “values may not to be compromised for financial gain or short term expediency,” (DesJardins 2006:5). In this case, it can be noted that Moyuka has prioritised its financial gains at the expense of the safety of the people who are likely to be affected by defective vehicles sold. A full scale investigation could have been implemented so as to ascertain the extent to which the acceleration problem of one of their vehicles can pose a danger both to the motorist as well as the pedestrian. As already noted, the term ethics is primarily concerned with distinguishing between something that is good and bad while special attention is focused on issues of morality and professional conduct in an organisation where honesty and integrity should be seen as the guiding principles. Of notable concern is to get an answer for this simple but complicated question; “Is it ethical to lie?” for Moyuka to simply ignore a case that can have negative consequences on the population at large is tantamount to recklessness and unethical conduct in business. When ethics is applied to business, we tend to consider the implications of economic activity on the interests of all those who are affected by it. It’s an issue that recalling the defective vehicles from the global markets will be costly to Moyuka but they are conveniently forgetting that they are putting the lives of different people at risk. The motorists risk getting involved in fatal crashes when the vehicle uncontrollably accelerates itself. This will also pose a danger to the walking pedestrians. It can be noted that this brazen act to ignore such a sensitive issue can put the lives of innocent people in danger simply because of the love of protecting the financial interests of the organisation. In this way, there is need to identify and implement standards of conduct that will ensure that business does not negatively impact on the interests of the stakeholders as well as ensuring that the standard of behaviour will enhance the interests of all those affected by business. Putting the risk of other innocent people at risk is tantamount to negligence and in good practice of business, this behaviour is seen as unethical. On behalf of the organisation, the issue of morality should be given precedence. In theory, truthfulness and being honest in business are two major tenets that shape and guide the way people in an organisation ought to operate. In the given case study above, the virtue theory will be used and it asks what a “good person” will do in specific real situations (http://www.medindia.net/education/familymedicine/biomedical-ethics-theories.htm ). The theory takes into consideration the reputation, morals and motivation when something irregular has just happened. In this case, we are made to believe that Sam is forced by the situation of which it is beyond his control hence we can sympathise with him to a certain extent though the decision taken by Moyuka is not ethical. Indeed, an individual person cannot override the collective decision made by the influential people within a particular organisation. On behalf of the organisation, it is always important to be truthful and honest at all costs so as to ensure that the organisation upholds the principle of doing good things to the majority of stakeholders concerned. In this case, it can be noted that on an individual level, Sam has less influence to turn against the decision made by his superiors in an organisation. Incidents sometimes arise in business where people are no longer certain whether some actions should be considered right or wrong (Hiti 1999). When people look at the same thing and some would regard it as morally right while others would regard it as morally wrong which is one typical example of an ethical dilemma in business. Indeed, the main objective of any business is to gain profit from its operations. However, as far as the issue of profit is concerned, it can be noted that in some cases, ethical values are not given the due prominence they deserve. For instance, Moyuka prefers to ignore a sensitive issue that can affect the welfare of the people which shows that it would rather sacrifice the ethical values in preference of making profits. It can thus be seen that this aspect of ethics is controversial at times since it often conflicts with the organisation’s goals of making profits from its operations. At times the businesses do not always follow the ethical standards set as is the case here which is controversial. In the event that I am Sam, I would try to use the other angle and approach probably the management this time and try to convince them that they ought to implement a full scale investigation into reported cases of accelerator problems in one of their best selling models. I will try to convince them that for the sake of the organisation and the citizens at large, it will be noble to do the right thing. In the long run, the company will likely lose the trust of the customers if they discover that the organisation has been covering up something they knew was dangerous to the people for the sake of financial gains. In some cases, people in the organisation may be biased towards short term financial gains at the expense of the long term survival of the organisation so I will try to present all these facts in a diplomatic but convincing way to try to make the decision makers to take some action towards this issue which can have serious repercussions on the welfare of the ordinary people as well as buyers of the vehicles. It may not be easy to turn a decision that has been made by the majority of influential people in the organisation hence I will seek another approach that is aimed at convincing those on top to get sense from my noble argument. (1 708 words) References Bugela M.J. (1996). Living ethics. Developing values in mass communication. Boston. Allyn and bacon. DesJardins J. (2006). An introduction to business ethics. 2nd Edition. Boston. McGraw Hill international Edition. Rossouw D. (2004). Business Ethics: 3rd Edition. Oxford. Cape Town. Oxford University Press. Weiss J. W. ( 1994). Business ethics: A managerial, stakeholder approach. California. International Thompson Publishing. Rainbow C (N.D). Descriptions of Ethical Theories and Principles[online] Available at: http://www.bio.davidson.edu/people/kabernd/Indep/carainbow/Theories.htm [Accessed on 30 November 2010]. An introduction to biomedical ethics (N.D). Available at: http://www.medindia.net/education/familymedicine/biomedical-ethics-theories.htm [Accessed 30 November 2010]. Read More