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Unit 08 Manager Social Responsibility Level 5 Icon College

7 Pages 1778 Words 374 Downloads

Case 1 : Termination of a Colleague and Friend.

Ethical issues – Who is the decision maker and what are competing pressure they are facing.

As a Human resource manager for information Systems (IS) Department at BMI Industries, I am responsible for coordinating employee termination. This job responsibility has developed an ethical dilemma for the termination of Lee. According the situation I need to choose among the two alternatives which is very difficult and undesirable. The two choices I have to face are as mentioned below -

  1. Inform Lee about his termination, but it can risk my job as the information regarding termination is very confidential(Abrams and et.al, 2014).
  2. Not informing Lee about his termination, and It will affect our friendship.

Ethical Dilemma

The Ethical Dilemma which is faced by me is -

“To inform Lee about his termination” OR “Not to inform Lee about his termination”

I am facing two critical situations due to the ethical dilemma, one will lead to a punishment which can affect my job or career in the company. Another situation of choice can affect Lee and my relationship which is also a major loss. Lee is my close friend I do not want him to suffer and break relation with me, on the other I also don't want to lose my job.

Kantianism

The Kantian ethical theory is otherwise called Deontological Ethics which for the most part converts into Dury Ethics, a basic component which should be considered is that as per this hypothesis every single individual ought to be dealt with as a closures and never as a means(Bjelica and et.al, 2016).The Kent theory of moral commitments expresses a man ought to make the best choice which is appropriate for his obligation yet it is correct just in the event that he or she isn't getting reward for doing that specific thing or act. As indicated by the Kentianism parties engaged with the moral quandary are as following -

  • Myself
  • Lee
  • BMI industry

Consequences of informing Lee about his termination

The major consequence of informing Lee about his termination is that it is against regulations of the company and I may face strict punishment for this. It is not at all acceptable by the company that I share termination information with employees. I may also get terminated from the company for sharing confidential information with an employee. They can also take legal action against me.

Consequences of not informing Lee about his termination

In a case I do not inform Lee about the termination, he will sell his house and buy the new one which is very costly. Lee thinks that his job is secure and due to this he planned to buy a new house. If in case I do not tell him that he is going to be terminated he will not be able to save his house and without job it will be difficult for him to buy the new house. It will affect our friendship and he may break all the relations with me. I will be treated as a selfish person because I got the job with Lee's support(Gibson and et.al, 2017).

Kantianism calculation

After conducting Kentianism analysis it is concluded that the ethical dilemma option that is providing maximum good for is to inform Lee about his termination. If I inform Lee that the company is terminating him, he will appropriately take decision about selling and buying house. The Kantianism theory states that an individual should do his duty, Lee is my close friend and it's my duty to make him aware of problem he might face due to the termination. In order to keep Lee and his family away from a great loss it is necessary to inform him about the termination. It is very important for Lee to get prepare for the termination, find a new job and postponed selling his house and buying the new one.

Recommendation

According to the above analysis it is easy to understand that I should choose to inform Lee about his termination as planned by the company. In order to save myself from punishment I will rather inform his wife who is also my friend. It is important to stop him from selling his house as it is a big decision that Lee made just because of his job. It is not sure that I wont get punished by my employer or the company, but as analysed by Kentianism it is my duty to inform him. The company is not getting any harm from this so it should be taken as a breach of regulation as well as help my friend to overcome this problem.

Case 2 : The FORD Pinto – An Amazing True Story!

Ethical issues (Who is the decision maker, and what competing pressures they are experiencing).

Ford motors are facing a great issue or problem regarding their newly launched a car named Pinto which is catching fire and people are getting injured. The major reason of this issue was found out to be the fuel tank of the cars, In order to resolve this issue company identified that they can redesign the fuel think of the cars. The customers are getting harmed and even losing their lives due to the low quality of the fuel tank. Due to this, an ethical dilemma is developed with this situation. This dilemma provides two choices for the company which are as mentioned below -

  • Ford should invest in redesigning the fuel tank
  • For should not invest in redesigning the fuel tank

Ethical Dilemma

The Ethical Dilemma faced by Ford motors is

“To redesign the fuel tank or

Not to redesign the fuel tank

Ford motors are facing two kinds of situations in this ethical dilemma, if they recall the Pinto and redesign its fuel tank it will increase their cost of production. On the other side if they do not recall or redesign Pinto it can harm many people or customers using the car (Mistry and et.al, 2015).

Utilitarianism:

To conduct a Utilitarian analysis, the first step needs to be performed is the identification of various parties involved or getting affected by the decision maker directly or indirectly. The various parties involved in this case are -

  • Ford motors
  • Customers
  • Stakeholders
  • Competitors
  • Capital partners or investors

 

Consequences of investing or redesigning the new fuel tank

The major consequence for Ford motors is that redesigning car's fuel tank will affect cost efficiency of the company. The major consequence of redesigning Pinto is increment in the cost of the company and it will directly affect the price of cars. It will consume a lot of time and resources for redesigning the cars. The other consequence of redesigning cars is to clearly represent that Pinto's design was not up to the mark which will greatly affect the company's reputation and brand image (Little and et.al, 2018).

Consequence of not recalling and redesigning the car

The Pinto car by Ford is not properly designed, the fuel tank of the car is highly flammable. Due to this many incident have happened already harming and killing few people. Therefore, it is an ethical issue or problem faced by the company which is to harm their customers (Sims and et.al, 2016). Another major consequence Ford can face is the bad market image and reputation, people already started developing negative brand image for Ford due to Pinto which resulted in decline in profitability of the company.

Utilitarian calculation:

The Utilitarian analysis concluded that Ford motors should select marketing option of recalling and redesigning Pinto, it can help the company to gain trust and loyalty of the existing customers as well as support them to attract new customers in the market. The theory of Utilitarian can help Ford to increase their sales as well as profitability of the company (Wachs and et.al, 2018). A Utilitarian may look at this case of Ford motors from different perspectives, depending upon individual thinking on what would develop “the good or greatest happiness for the highest number of individuals”. From the perspective of the company the greatest good can be produced by maximizing profit and reducing cost as it will help in manufacturing cars at lower price as compared to producing cars with safety concerns or redesigning the existing ones. On the other hand it is observed by customers as well as Ford themselves that avoiding safety concerns can harm a lot of people and even be the reason of their death. Hence, the good can be the greatest if company redesign Pinto, if they will offer high quality products to the customers their sales will increase and it will directly enhance their profit.

Recommendation:

According to the Utilitarian analysis, it can be concluded that Ford motors should focus on redesigning the fuel tanks of Pinto cars. Redesigning the cars wont cost too much to the company, whereas if they avoid this issue many customers can get harm. In order to develop a positive image and brand value in the market Ford can effectively change their car designs. The company needs to invest $5.08 (including purchase and installation cost of the bladder) on each car to change the fuel tank design and reduce the harm of catching fire. According to the Utilitarian theory maximize the greatest good for the greatest number affected by given decision/action. Taking care of the customers can assist the company to increase their sales by attracting new customers.

References

  • Wachs, M., 2018. Ethical dilemmas in forecasting for public policy. InClassics Of Administrative Ethics(pp. 102-114). Routledge.
  • Little, D., 2018.The paradox of wealth and poverty: Mapping the ethical dilemmas of global development. Routledge.
  • Bjelica, D., Gardašević, J., Vasiljević, I. and Popović, S., 2016. Ethical dilemmas of sport advertising.Sport Mont,14(3), pp.41-43.
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