Case study

This case study relates directly to ethical issues that George Wilson faces as the operation manager in ComCo Company where he is in charge.  The company was faced with stiff competition from Abco Company which is offering competitive prices in ComCo market area and George has to make a decision regarding the use of contaminated corns. George is aware of what he is supposed to do but every decision he makes there are going to be consequences. He is faced with the dilemma of whether to act as required by his supervisor or if he does not do so some layoff are going to begin in the plant hence unemployment (Ferrell, Fraedrich & Ferrell, 2013)..

George the operation manager in ComCo has a task of making decisions that are of ethical nature. Abco is a new entrant in the market who has begun marketing at very competitive prices posing a threat to comco company profitability. This means that George has to make sure that the production cost has reduced and sales increased. George supervisor Jake asked him to find a way of cutting cost. George secures a source of cheap com but they were contaminated (Ferrell, Fraedrich & Ferrell, 2013). They had aflatoxin in them which induces liver cancer. According to American law, any product that is contaminated with aflatoxin is not be consumed or sold in America. The ethical issue arises because George is aware that if he does not use the contaminated corn which is against the law employees will lose their jobs. Secondly, if anything arises George was to be held responsible for authorizing the contaminated corns to be used since his signature was the one to be on the railcars (Ferrell, Fraedrich & Ferrell, 2013). George is aware that the company plans to mix contaminated corns with non-contaminated ones so that aflatoxin cannot be detected. To George, this is morally wrong.

According to Underwood personal ethical model George can consider various things to do. With an absolute defense, George can be able can be able to end a litigation in his favor if it occurs. He can be able to prove the factual circumstances when acting as a manager. According to the law, George has powers to act accordingly (Ferrell, Fraedrich & Ferrell, 2013). The aflatoxin products have no place in the American market. Therefore, George has an obligation not to produce the products even though it is not prohibited to ship such products. Morally the action of producing this product is wrong. As much as the product is accepted in other countries they are not fit for human consumption. This is because they pose more harm than good to human health. He should also not demand any discount percentage from the suppliers of contaminated corns as this encourages the suppliers to supply corns that are contaminated. This also portrays a bad picture of the organization as their aim is to make huge profits at the expense of human health.

 

George has the option of making a right decision. According to Jake the contaminated corn chips can be sold in Mexico since there are no laws prohibiting products that are contaminated with aflatoxin. He further adds that the more corn chips produced the greater the profit which in return will mean higher bonus for George. This puts George into temptation and makes it even harder for him to make a decision. The most ethical decision George can make is turning down the offer of the cheap contaminated corns (Ferrell, Fraedrich & Ferrell, 2013). He can seek another source for corns which are not contaminated even though they will not be as cheap. He can also put into consideration laying out employees who are not efficient in their work to reduce operation cost. This put him in a better position as a manager who works towards the objectivity of the organization and is ethically upright.

Reference

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and     cases. Mason, OH: South-Western/Cengage Learning.