Unethical Behaviour In A Business Case Study

1927 Words4 Pages
bulb-icon

Recommended: Case study assignment in business ethics

Throughout this essay I will be arguing if unethical behaviour can make a business fail, this will be done by analysing various case studies such as Ford, Starbucks, Fashion Café and Volkswagen. I will also discuss how corporate social responsibility links in with ethical behaviour.
Unethical behaviour is when a person or a business acts morally wrong and performs something that would be viewed unacceptable by society. Business ethics has been described as ‘the study of business situations, activities, and decisions where issues of right and wrong are addressed’ (Crane & Matten, 2007, p. 5). Harrison has described ethics as ‘virtues such as honesty, integrity, trust and fairness, or may simply be what is acceptable in a particular context or community’ (2014, p. 191). Corporate social responsibility has been referred to ‘as actions that appear to further some social good, beyond the interests of the firm and that which is required by law’ (McWilliams & Siegel, 2001, p. 117), this looks at …show more content…

After calculations Ford had concluded that $200,000 is the cost of a person’s life, which would be cheaper than fixing all vehicles with the design issue. Ford could have decided to not put the Pinto model in the market nevertheless the car was very appealing to consumers and therefore increase their profits. This conclusion was perceived as ethically wrong as Ford had decided to risk people’s lives by putting vehicles on the market which were deemed unsafe if they were hit at an average speed which is perceived as an absence of corporate social responsibility, this is due to society not believing you can put a price on someone’s life. Although Ford did not fail as a business they were effected by a decrease in sales; ‘during the period of the trial, Ford sales declined… [by] 30.6 percent’ (Fisse & Braithwaite, 1983, p.

Show More
Related

  • Business Ethics Case Study

    820 Words  | 2 Pages

    Do you agree with Schmeltekopf that business schools are not preparing students well for the for the ethical challenges they will face in the workplace? Why or why not?

    Read More

  • Ford Pinto Ethical Ethics

    769 Words  | 2 Pages

    When we consider the case of the Ford Pinto, and its relative controversy, through the varied scope of ethical viewpoints, the results might surprise us. From a personal standpoint, as a consumer, the idea of selling a vehicle to the masses with such a potentially devastating flaw is completely unethical. When we consider the case from other directions and other ethical viewpoints, however, it makes it clear that often ethics are a matter of perspective and philosophy. It’s also clear that there are cases where more information will muddy the waters, rather than clear them.

    Read More

  • The Ford Pinto Case

    756 Words  | 2 Pages

    There was strong competition for Ford in the American small-car market from Volkswagen and several Japanese companies in the 1960’s. To fight the competition, Ford rushed its newest car the Pinto into production in much less time than is usually required to develop a car. The regular time to produce an automobile is 43 months but Ford took 25 months only (Satchi, L., 2005). Although Ford had access to a new design which would decrease the possibility of the Ford Pinto from exploding, the company chose not to implement the design, which would have cost $11 per car, even though it had done an analysis showing that the new design would result in 180 less deaths. The company defended itself on the grounds that it used the accepted risk-benefit analysis to determine if the monetary costs of making the change were greater than the societal benefit. Based on the numbers Ford used, the cost would have been $137 million versus the $49.5 million price tag put on the deaths, injuries, and car damages, and thus Ford felt justified not implementing the design change (Legget, C., 1999). This was a ground breaking decision because it failed to use the common standard of whether a harm was a result of an action on trespass or harm as a result of an action on the case (Ferguson, A., 2005).

    Read More

  • Business Ethics

    837 Words  | 2 Pages

    - The two ethical justifications for the economic model are the utilitarian and individual rights or private property defenses. The most significant challenges facing the utilitarian justifications are: those that focus on the adequacy of free markets as a means to the ends of maximally satisfying consumer demand, and those that focus on the appropriateness of these ends as legitimate ethical goals. Of these, market failure is a popular challenge that is raised when considering situations in which the pursuit of profit will not result in a net increase in consumer satisfaction. The two significant challenges to the private property defense are: recognizing that property rights are not absolute, and understanding that historically, corporate property rights differ from personal property, questioning the understanding of stockholders implied by this defense.

    Read More

  • Lack of Ethical Behavior in the Cases of Bernie Madoff and Enron

    669 Words  | 2 Pages

    Ethical behavior is behavior that a person considers to be appropriate. A person’s moral principals are shaped from birth, and developed overtime throughout the person’s life. There are many factors that can influence what a person believes whats is right, or what is wrong. Some factors are a person’s family, religious beliefs, culture, and experiences. In business it is of great importance for an employee to understand how to act ethically to prevent a company from being sued, and receiving criticism from the public while bringing in profits for the company. (Mallor, Barnes, Bowers, & Langvardt, 2010) Business ethics is when ethical behavior is applied in an business environment, or by a business. There are many situations that can arise in which a person is experiencing an ethical dilemma. They have to choose between standing by their own personal ethical standards or to comply with their companies ethical standards. In some instances some have to choose whether to serve their own personal interests, or the interest of the company. In this essay I will be examining the financial events surrounding Bernie Madoff, and the events surrounding Enron.

    Read More

  • Is Puma Inc an Ethical Company?

    1818 Words  | 4 Pages

    Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).

    Read More

  • Difference Between Unethical And Unlawful Behaviour In The Business Context

    1018 Words  | 3 Pages

    In business the primary focus is on maximizing returns to owners or shareholders. The manner in which a business conducts itself while attempting to make its profit can be considered ethical or not. For instance, a business that has a positive sense of social responsibility will make some effort to have a positive impact on society, contributing to the welfare of the community in which it operates in some way or another. Unethical practice in business could include the converse of this, where a business is solely concerned about its profit and does not attempt to mitigate the impact of its operations in that society. For example, a mining exploration company that does not attempt to ease discomfort and inconvenience of the people that are displaced by its operations could be considered unethical.

    Read More

  • Ethical Business Case Study

    1111 Words  | 3 Pages

    The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil

    Read More

  • Coca Cola's Ethical Dilema in Belgium

    1385 Words  | 3 Pages

    This Coca Cola malfunction incident demonstrates that if attention is not paid to the ethical operation or the company it could challenge and threaten a company’s short and long term performance. This could have long lasting affects on the companies operations and requires strategic decisions to restore company’s image in the eyes of the customers. Gaining the trust of customers takes long time but it is broken with one small incident.

    Read More

  • Business Ethics Case Study

    1348 Words  | 3 Pages

    The Facts: Kermit Vandivier works for B.F. Goodrich. His job assignment was to write the qualifying report on the four disk brakes for LTV Aerospace Corporation. LTV purchased aircraft brakes from B.F. Goodrich for the Air Force. Goodrich desperately wanted the contract because it guaranteed a commitment from the Air Force on future brake purchases for the A7D from them, even if they lost money on the initial contract.

    Read More

  • Ethics In The Workplace

    1936 Words  | 4 Pages

    This essay will provide two actual case studies: one of positive ethical principles and the other of poor ethical principles. Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as Gaye-Anderson, 2007 states, quite easily the lives and professional reputation of the employees can even be severely damaged. 3.

    Read More

  • Managerial Ethics

    1607 Words  | 4 Pages

    In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.

    Read More

  • Essay On Business Ethics And Social Responsibility

    853 Words  | 2 Pages

    Business ethics and social responsibility are two concepts many individuals believe go along together for corporations in the business environment. Business ethics are the moral values a company uses to ensure all employees action in a standard manner when completing business functions. Social responsibility is typically a conceptual theory that governments and the general public hold, believing that businesses should not conduct themselves in a manner counter to cultural or societal norms. The connubial of these concepts happens when companies introduce a written code of ethics to demonstrate that the company only acts in its greatest interest so long as it does not damage the company’s social responsibility.

    Read More

  • Reflection Paper: Reflection On Business And Society

    736 Words  | 2 Pages

    As a student interested in one day starting a firm, learning the business models and its advantage is prepping me for the real world. Those models like the SWOT Analysis are bringing me closer to my dream of running my own business. Professor Sheldon’s experience in the business atmosphere has opened my mind to the experience of running an enterprise. This has helped me slowly develop my plans on what nature of business I want to enter and the stakeholders I’m obligated too. Apart from obligation I am also subjected to the laws of the land and a social responsibility. I must consider ethical behaviour in doing business as a lack of it has negative effects. Look at Enron for example, where the firm lied to their stakeholders just to keep stock prices up and later crashed the company. This resulted in many investors losing their pension and savings and now the board is serving long jail

    Read More

  • Corporate Social Responsibility Essay

    2186 Words  | 5 Pages

    Business Ethics are much more than the buzz word stories on late night news. The Corporate Social Responsibility of a company goes well beyond that. “Business Ethics are moral guidelines for the conduct of business based on notions of what is right, wrong and fair.” (Bellow, 2012). Individual backgrounds play a huge role in person by person code of conduct can vary from employee to employer. To help solve some grey areas in what is ethically correct, companies now make a code of conduct that is over everyone in the company. This code of responsibility helps employees have better understanding of what is required of each and every one of them. “Corporate Social Responsibility is a business philosophy which stresses the need for

    Read More

More about Unethical Behaviour In A Business Case Study

Open Document