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Business Ethics
Case Studies
CASE STUDY (20 Marks)
Prohibition is good and women would
appreciate a policy of prohibition. However some state governments may scrap
prohibition on the grounds that (i) the adjoining states do not observe
prohibition, hence people visit those states to quench their desire for the
beverage (ii) the existence of illicit distillation and the difficulty in
stopping this (iii) the strain on government resources for implementing
prohibition, including the loss of revenue from excise duty.
Answer the following question.
Q1. Are the grounds shown in the above
case ethically justifiable? Explain.
Q2. In your opinion what are the
benefits of prohibition. Discuss.
CASE STUDY (20 Marks)
In "The Buck Stops Here," a
presentation for the Markkula Center for Applied Ethics Roundtable for
Executives, Michael Hackworth talked about how he models ethical leadership in
his role as CEO of chip manufacturer Cirrus Logic. "Employees take their
cue from the CEO," he said. "In every situation, they ask, 'What does
the boss want?' They give him what he wants when they talk about the business,
when they talk about the law, and when they talkor don't talk about ethics. In
general, people line up behind what the CEO wants." The Ethics Roundtable
for Executives brings business leaders together to discuss the moral dilemmas
they confront in the workplace. Using this case study, created with Center
Executive Director Thomas Shanks, S.J., Hackworth encouraged members of the
Roundtable to imagine how they might confront this challenge: Their company is
planning to expand into a country where bribe taking is considered a normal
part of doing business. Pegasus International Inc. is a leading manufacturer of
integrated circuits (chips) and related software for such specialty markets as
communications and mass storage, as well as PCbasedaudio, video, and
multimedia. With a focus on innovation, Pegasus is committed to
"technology leadership in the new millennium." Its longstanding
strategy has been to anticipate changes in existing and emerging growth markets
and to have hardware and software solutions ready before the market needs them.
The company has also made significant strides in wireless communications. The
systems and products of Pegasus' wireless business have been selling well in
its already existing markets in the United States, Japan, and Europe. But, like
any company, Pegasus is eager to grow the business. At a strategy session with
the Wireless Division, Pegasus CEO Tom Oswald and division managers decide to
explore the potential of expanding their business to China. Initial research
indicates that China is likely to develop into a huge market for wireless
because its people do not currently have this capability and the government has
made spending on wireless a priority. Wireless is really the only choice for
China because of the high cost of burying the communications cables necessary
in wired systems; further, in underdeveloped countries, copper wires are often
stolen and sold on the black market. Subsequent research does raise one concern
for Pegasus wireless managers. They tell Oswald, "We have this problem.
China allocates frequencies and makes franchise decisions city by city,
district by district. A 'payoff' is usually required to get licenses." The
CEO says, "A lot of companies are doing business with China right now. How
do they get around the problem?" His managers have done their homework:
"We believe most other companies contract with agents to represent them in
the country and to get the licenses. What these contractors do is their own
business, but apparently it works pretty well because the CEOs of all those
companies are able to sign the disclosure statement required by law saying that
they know of no instance where they
bribed for their business." "I wonder if paying someone else to do
the crime is the same as our doing the crime," Oswald says. "I'm just
not very comfortable with the whole question of payoffs. So, let me ask you, if
we don't expand into China, how much business will we lose, potentially?"
His Wireless Division manager responds, "It will be huge not to do
business in all the countries expecting payoffs. China alone represents easily
$100 million of business per year. It's not life and death, but it is a sizable
incremental opportunity for us, not to mention potential Japanese partners who
will make significant capital investments. All we have to do is add our already
existing technology. When you consider all that, we have a lot to gain. What
will we really lose if our local contractors are forced to make payoffs every
now and then?" Oswald wants his company to succeed, he wants to maximize
shareholder value, he wants to keep his job, and he wants to model ethical
leadership. He has made an effort to build a corporate culture characterized
not only by aggressive R&D and growth but also by integrity, honesty,
teamwork, and respect for the individual As a result, the company enjoys an
excellent reputation among its customers and suppliers, employee morale is
high, and ethics is a priority at the company.
Answer the following question.
Q1. Give an overview of the case.
Q2. What should Pegasus CEO decide in
this case? Why?
CASE STUDY (20 Marks)
Thirty-two sadhus from Punchamahal
district, who were on a 72hour relay hunger strike at Godhra since Friday to
canvass against the BJP candidate from the Lok Sabha constituency there, Mr.
Shankarisinh Vaghela, from his role in the toppling of the Keshubhai Patel
ministry after spearheading a revolt, called off their agitation today, reports
PTI. Reports received from Godhra, about 80kms from here, said the mahanta and
sadhus, along with the vicepresident of all India ShadhuSant’s Samiti,
Avichanddas Maharaj from Sarsa in Anand Constituency, withdrew the fast, which
was to end at 2.00 p.m. tomorrow. It was not immediately clear as to why they
called off the protest prematurely. The sadhus had said they wanted to ensure
the defeat of Mr. Vaghela in the election and alleged that he had betrayed them
by dethroning Mr. Patel last October. They also demanded an end to ‘Khajuraho
Culture’ in the BJP and noted that Mr. Vaghela had flown dissident BJP MLAs to
Khajuraho in Madhya Pradesh during the revolt by some rebels in the party.
Meanwhile, the Chief Minister, Mr. Suresh Mehta, at a press conference at the
Chhotaudepur town in Baroda district, appealed to the sadhus to end their
program of dharna ‘in the interest of the BJP and the nation’
Answer the following question.
Q1. Give an overview of the above case
Q2. Explain the ethical aspects in the
above case.
CASE STUDY (20 Marks)
Lucy is a second semester senior at a
small private university near San Francisco. Coming into college, Lucy had to
choose between two similar universities on opposite sides of the country, one
in California and the other in New York. Lucy’s decision came down to location
and she ended up selecting the California university because of its proximity
to her home and family. Now, Lucy is preparing for her postgraduate life. She
has applied to countless jobs in public relations, as her father has always
told her that getting a job is a numbers game. Several positions have been on
the East Coast, but the majority has been in California. Lucy knows her mother
would like her to stay close to home. Lucy has a younger brother still in high
school whom she could mentor, and an older sister who lives at home and
commutes to her job in the city. Lucy’s dream job is to work for a global
public relations agency in a big city like New York or Chicago. She isn’t
really interested in doing public relations for the technology industry.
California agencies largely work in technology, so if she stayed close to home
she would likely have to work tech for part of her career. That being said,
family is the most important aspect of Lucy’s life. She was raised in a home
where family is No. 1, and there were no compromises when it came to the
family’s wellbeing. Everyone in her family looks out for one another. She would
absolutely love to stay near them if she has the opportunity after college.
After a long and hard job search, Lucy manages to get an internship at one of
the largest global public relations agencies in Chicago. She also gets several
good agency jobs in San Francisco, including one at a global public relations
firm working in technology. Lucy is struggling with her decision. She knows
that she doesn’t really want to work in technology, but she does want to stay
close to home if possible. Both agency jobs pay around the same, and she would
be able to grow in each company with hard work.
She also could jump location eventually should she desire to experience
working in a different city.
Answer the following question.
Q1. What is more important, individual
career goals or family responsibility and loyalty? Discuss.
Q2. Does Lucy have an ethical
responsibility to consider family when preparing for her future career? Why or
why
not?
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
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