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First, employment of underage individuals is unethical and a way of breaking laws. This was exhibited in one of COEL’s subsidiary Asian…
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Case Study Case Study Although COEL has been successful in most of its business ventures, there are several unethical cases reportedin its foreign branches. First, employment of underage individuals is unethical and a way of breaking laws. This was exhibited in one of COEL’s subsidiary Asian company. Second, the company has provided solvent that could lead to health problems when used in areas with higher temperatures than the originally intended temperature. Although by doing this the company has been able to avoid a higher cost for better solvent, it is unethical since the company does not seem to take care of the employees’ interests. Third, the company has not been keen in defending the interests of the female employees who occasionally experience sexual harassments. Such acts are perpetrated by the company’s top officials that the company values due to their performance and hence does little about such cases. The company has received several complaints from female employees regarding sexual harassments but failed to act since such behaviors are “acceptable” in some of the countries that the company functions. Nelson would have taken strict measures with regard to the unethical happenings. With regard to child labor, the company should have inspected the subsidiary company to make it clear that child labor is not tolerated. Nelson should also have ensured that the company takes care of all employees’ interests regardless of the country. Here, the company would have provided the most appropriate working solvent and take all complaints seriously. Moreover, Nelson would have also made it clear to all employees regardless of their positions that sexual harassments are not entertained and would be penalized.
With regard to formulation of a code of ethics, Nelson should ensure that all of the reported unethical issues are addressed in the code. Such issues include rules governing child labor, employees’ health, and issues regarding sexual harassments and similar behaviors in the organization’s subsidiary companies. This would ensure that the company has a predefined culture, which takes care of all individuals’ interest. With respect to suggestions, I would suggest a code that caters for the interests of the main stakeholders and improve the reputation of the company in the face of the public and the customers. The code would also deter unethical behaviors in the company. Read More
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