Legal Analysis - Case Study Example

Case Study Overview Alistair acts as a Chief Legal Officer (CLO) in an international pharmaceutical organization. He has the obligation to monitor the members and fulfill the demands of the board of directors with regard to ethical policies. Alistair was entrusted the responsibility to investigate regarding the price fixing issue in the European offices. Furthermore, after being informed by the lower level manager a further investigation was arranged about “the Bosnia contract” relating to unethical practices that were taking place. Alistair investigated regarding the issue and recognized that the organization spends a large portion of their money, as commission to the local authority and also to the border patrolling militia. Alistair faced ethical dilemma after the investigation about the ethnicity of the issue. Problem Alistair as the CLO has the major responsibility towards ensuring business ethics, which are being followed by the organization in order to maintain ethnicity while conducting overseas operations. In the process of investigation regarding the Bosnia contract, it was observed that the organization supplies millions of medicine kits, which are inexpensive in nature for delivering in the war torn regions of Bosnia. The problem of unethical business conduct was recognized in the area of payment made. It was observed by Alistair that extraordinary payments are made to Romanian distributor for the delivery of the kits. Moreover, the payment was made for the trucks with medicine kits to enter into the region of Bosnia after fulfilling the cash demands of the local militia units. The reason for such growing concern was that the militia units murdered truck drivers for delivering medicine without cash. In this respect, business organizations were not being able to perform ethically and make ethical decision. Input Bosnia is a developing country and the imposition of bribes along with extortion is common in the government services for weak governmental policies. The distributor is paid money due to the fact of unrest and unstable political situations in Bosnia. The discontinuation of the payment to the local authority results in reduction of the delivery of medical facilities to the local community in need. The CLO has a highest rank in the well-respected company making lifesaving drugs and thus, he is responsible for ensuring that operations are conducted in accordance with business ethics. He is liable to take actions and is compelled to perform for the best interest of the pharmaceutical organization delivering medical kits in Bosnia. As per the job role, he is entitled to operate the operations within the legal boundary and ethics of the corporation. Ethical standard and decision making implies that any sort of misconduct, money laundering and bribe must be reported in order to maintain the reputation of the business for effective execution of operations in global market segments. Alistair as CLO has a major role to play in safeguarding the image of the company and maintain health within community. Therefore, from the perspective of the CLO ignoring the contract of Bosnia will not only question the job responsibility of the individual but also for the organization. As per the case, the amount paid to the militia units might increase with time if not taken adequate measures from the company to perform operations profitably. If the present situation of Bosnia of paying commission to the authority is revealed in the community, the organizational image might be harmed considerably. Therefore, in order to maintain the ethics and the business integrity, Alistair should take corrective measures such as writing a report to the higher authority regarding the inconvenience caused in delivering services to the community. The company performs operations with the aim of making profit but in the case of Bosnia contact, no profits were made. However, the unethical practices conducted by the local authority is creating obstacle for the organization to seek any profit. Alistair being the legal officer, if reports about the unethical practices identified in the organization for a humane cause, then it might affect the community, as the Bosnia people will not be provided with the required medical facility. The steps to be taken by the CLO must be such that it does not hamper the lives of the employees, distributors and the truck divers at large. The actions to be undertaken are required to be ethical in nature in order to endure the business practices. Every business should be accountable for their actions and undergo the repercussions of breaking laws and taking risks as well as radical actions. Any illegitimate action from the CLO and the member of the organization might increase the risk factors in relation to brand value and profitability among others of the company in the future endeavor. Solutions Alistair is responsible for the investigation and has to take a decision regarding the ethical dilemma he is facing concerning the business integrity and humanitarian aspect. The ethical decision-making is influenced by taking into concerns the moral development along with behavior of the member. The moral judgment, sensitivity and action are few obligations that are to be considered by Alistair for better effectiveness while making the judgment for the investigation (Lincoln & Holmes, 2011). Solution 1 The decision with regard to ethical legal process will be such that Alistair will report the misconduct of the local authority to the higher governing body, so that the issue faced by the organization is resolved and the business can be conducted legally. Moreover, based on the Theory of Fair Employment Laws, Alistair being a CLO should inform the board members regarding the issue of bribery. The theory implies that the people should not be discriminated and saved from punishment in case of any misconduct is conducted by the employee. Therefore, being the CLO he should report the incident to the higher authority and the board members. The executive carrying out the task must be warned and punished to a certain extent, as his actions were governed for a good deed. The action will help in developing effective and efficient policies and educate the leaders regarding the ethics concerned (Fiss, 1971). Strength: Strength of Alistair is that his action will help the company in maintaining its image and business ethics. The decision adopted will be legitimate for the organization and the members concerned. His act of reporting will help in mitigating such instances in future and ensures that business operations are performed ethically and socially responsible manner. The action will assist in maintaining transparency and effective in the sphere of Corporate Social Responsibility. The action will allow the organization to avoid any future issues regarding the job responsibility of the people concerned. Weakness: Weakness of the approach can be increasing risk for the individuals concerned and the interruption in the medical supply for the people of Bosnia. The action might affect the executive concerned for his act of not maintaining transparency by sharing the information with the board of directors. The action taken by Alistair might cause harm to the image of the executive involved in the deal. Opportunity: Opportunity of the solution can be mitigation of the issues in the future and improving the image of the organization in the public forum at large. The action of reporting will also assist in maintaining the profitability of the organization. Threat: Threat for Alistair can be the regarding his job responsibility and business ethics if he does not inform the authority. The information regarding the bribe for the Bosnia contract can affect the cost of doing a business with regard to its reputation. Thus, the solution with regard to safeguard the company image is correct, as the CLO is following the best practices regarding ethical decision-making. Solution 2 Another solution can be to maintain silence and allow the bribe to continue in the organization. The reason for such solution is due to the fact that the bribe is being taken for a good cause to help the people in Bosnia. The silence might be unethical from the business perspective but will assist in helping the people in need. The solution or the decision-making is based on moral intensity of the CLO. The action of accepting the issue of bribery can be acknowledged, as it is done in order to meet the social responsibility towards community. Strength: Strength of Alistair will be that the employee involved in the contract will not be affected. Moreover, the charitable action of providing support to the people of Bosnia will continue without any interruption. Weakness: The ethical approach of the business will be affected, as the best practices concerning the business are not being adhered. The risk of emergence of such issues in future will remain from the perspective of the executive involved in the contact. The transparency of organizational code of conduct will also be hampered. Opportunity: The social responsibility aspect of the organization will be met be considering the humanistic approach. Threat: The action of Alistair is identified in future his job responsibility will be at risk. Being a CLO he is to abide by the law to follow the ethical approach. Choice The first solution to report the board of director and the higher authority of government is appropriate. The reason for such choice is that it will be ethical and legal from the perspective of the organization to conduct operations in a fair manner. The action will help in maintaining transparency in the organization and in developing best business practices. Furthermore, the report will help and make the government informed regarding the actions and incidents taking place in the region of Bosnia by the militia units. The act of murdering the truck drivers and taking bribery to enter the region looks like philanthropy as forced in certain area of Bosnia. In accordance with the business practice and ethical decision-making, the theory of fair employment is taken into consideration wherein the executive involved in the deal might have to face few consequences for the action regarding the bribery and not informing the board regarding the contract’s unethical aspects (Uys & Harty, 2001). Operational Plan The solution taken up by the CLO of the organization is based on the principle of ethical decision framework and approaches. In order to implement the solution, an action plan is to be prepared by considering the SMART criteria. As per the action plan, the specific area for improvement with regard to the ethical decision-making is that the executives dealing with the contract must inform the board of directors during any illegitimate situations. Moreover, the concern regarding the government’s weak governance measures and the Romanian distributor charging commission from the delivery of medical kits to the area of need should be mitigated. The solution can be measurable, as the business operation and the decision-making will be transparent following the business ethics. The solution might be beneficial for the organization and for the Bosnian community involved. The report and the step taken by Alistair will be helpful in maintaining business ethics and legal framework. The goal set by Alistair to have a transparent and ethical process is achievable by the organization through the maintenance of ethical standards. The board of director on receiving the report should take corrective measures to stop the unlawful act by the local authorities. It is observed that the action and the solution taken up by the CLO for the business operation is more result oriented. Being a profit seeking organization, the solution might bring in profit and more transparency along with fair business practices in the organizational structure. Accordingly, it can be evaluated that the solution is realistic and achievable. The solution might be achieved within the span of 3months through proper reporting, analyzing and implementing effective policies to mitigate the issue. The board of directors might take adequate measures in resolving the illegitimate actions by the militia units in assisting the people of Bosnia and also in safeguarding the image of the organization. References Fiss, O. M. (1971). A theory of fair employment laws. Yale Law School Legal Scholarship Repository, 38, 236-314. Lincoln, S. H., & Holmes, E. K. (2011). Ethical decision making: a process influenced by moral intensity. Journal of Healthcare, Science and the Humanities, 1(1), 55-69. Uys, K., & Harty, M. (2001). Ethical decision-making. 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