Raider Inc.: Case Study

1. What is the ethical issue in the case? What makes this an ethical issue?

The ethical question is whether or not it is right to default on a legitimate bill that is owed. The bill is legitimately owed, and the company may fold if they default on this bill. Johnson printing was essential to the ongoing success of the PLB- shouldn’t that support be reciprocated.

2. Who are all of the stakeholders that are impacted by the ethical issue in the case? Discuss how the ethical issue impacts each stakeholder.

The stakeholders are Raider Inc., PLB employees, Johnson printing owners and employees. Raider Inc. is a stakeholder because they must make a decision that impacts PLB. PLB employees are stakeholders because morale can be impacted by the

may expect to be treated that way, but if someone owed them a debt, they would want to be paid. Johnson Printing employees will feel it was unfair. It is not legally or socially responsible. They could go to jail, and their reputation could be tarnished. People will say they are acting inappropriately to get what they want. Raider Inc is the only stakeholder involved in the decision making process. Nobody else will feel included in making the decision. (COB, 2014)

4. If you were making a decision about what is the right thing for Raider Inc. to do using the utilitarian approach, what would your decision be and why? Explain how your decision represents the utilitarian point of view, and your specific decision making process.

Raiders Inc. should proceed with the acquisition of PLB and pay Johnson Printing what it is owed. This will keep Johnson Printing business in tack. It will also circumvent the possible moral issues that may have happened if PLB had to default on payment and cause harm to a vendor that had worked very hard as a business partner to keep them afloat. This also makes at least 1/3 of Raider, Inc. happy.

With utilitarianism ethics, they consider the end product. Balanced out, the happiest result happens by all parties compromising. (COB,

--

7. Assuming that the leaders of Raider Inc. do not want their employees to behave unethically, what are several (at least three) things that can be done to improve the ethical climate (from both an ethical and decision making standpoint)? What steps can the managers at Raider Inc. take to guide employees to make more ethical decisions?

By proactively addressing ethical issues with a code of conduct, Raiders Inc. can set the standard regarding how they want employees to behave. Employee can be trained on the company code of ethics so they understand how their company expects them to respond. They can also train them on the biases of decision making, to make sure they are aware of the pitfalls that exist. (Robbins & Coulter, 2012)

Raiders Inc. can lead by example, and be wary for biases that happen. One way they avoid “framing bias” is by all doing independent reviews of an acquisition and then getting together to discuss their opinions. Framing happens when you pay more attention to one area than another. Since each member had a different strength, they are likely to give more weight to their specialty. (Robbins & Coulter, 2012)

8. Discuss Preventative measures that you would enact to prevent the situation from recurring (e.g., training, policy, disciplinary measures) citing respective company