Business: Management 3610 Ethics Assessment Case

Question 1

From the case, the ethical problem is that Jon desires to totally avoid the Debt obligation which was incurred after purchasing another company. This is, therefore, an ethical issue given that the decision will be placing the stakeholders at risk. In that, they are likely to lose all their investment because of the selfish interests of the new owners. If the company is sued for the actions then it will run into complete bankruptcy something that will affect productivity and operations (Lewis & Gilman, 2012).

Question 2

Johnson Printing, employees, consumers and investors are the stakeholders who are affected by the issue. Given that Johnson printing is just a small organization the loss which is particularly large will result in its closure. In addition, the employees who acquire survival from the company will also be affected as well as the consumers (Buchholtz & Carroll, 2014).

Question 3

My decision, in this case, would be not to avoid the debt. This is the only right decision that can be applied. Based on Deontological viewpoint the decision to avoid the debt is not acceptable to all those that are involved (Buchholtz & Carroll, 2014). The decision means that the avoidance is to be utilized for personal interests which will affect the company. It is only ethical if they decided to pay the debt which will be essential for both companies in terms of reputation and responsibility.

Question 4

Using the utilitarian approach my decision would be to settle the incurred debt. This decision is influenced by the fact that weighing the alternatives paying the debt is bound to bring more benefits both in terms of gaining a positive image and being responsible. The decision is a reflection of Utilitarian viewpoint given that it seeks to benefit all those that are included (Lewis & Gilman, 2012).

Question 5

I propose the initial solution to be settling the debt which is the ethical option. This decision would benefit Raider Company by preserving its reputation and the financial stability of Johnson Printing but affect the investors financially. The seconding feasible solution would be engaging in agreements with Johnson Printing and the investors in regard to slow debt payment in order to secure its financial capability. This would work to ensure that the debt is settled while preserving the image of the company and ensuring that Jonson Printing is not closed due to losses. The Third solution is to pay the debt in full as they acquire funding from elsewhere. This would put the company in a great loss but it is only right given that they knew about the existence of that debt from the start (Lewis & Gilman, 2012).

Question 6

Given that Rick is the financial analyst he should assess the involved risks that would be acquired by the decision to pay the debt and communicate so that they can settle for a probable decision on the payment. In addition, in order to motivate the stakeholders to participate in payment, he should boycott in the company’s operations. This would be essential in creating positivity that is bound to ensure that the debt is not avoided (Tencati & Perrini, 2011).

Question 7

Several things can be utilized in improving the ethical surrounding in the organization such as increased communication, maintaining discipline and encouraging change. Setting policies is the best mode of promoting discipline while effective communication eliminates any form of misunderstanding. The steps that the managers can utilize to encourage ethical conducts among employees is to act as examples, provide training as well as set policies to guide ethical conducts (Buchholtz & Carroll, 2014).   

Question 8

The major preventative measures that can be applied in ensuring that the situation does not occur again are increasing communication, policy as well as training. In that communication within the organization would have worked to develop ethical decisions. On the other hand setting policies would have been utilized as a reference in making decisions. Training, on the other hand, is objected at increasing knowledge and encouraging ethics (Tencati & Perrini, 2011).

 

 

 

 

 

 

 

 

References

Buchholtz, A. K., & Carroll, A. B. (2014). Business and society: Ethics, sustainability, and stakeholder management. South-West.

Lewis, C. W., & Gilman, S. (2012). The ethics challenge in public service: A problem-solving guide. San Francisco, CA: Jossey-Bass, a Wiley Imprint.

Tencati, A., & Perrini, F. (2011). Business Ethics and Corporate Sustainability. Cheltenham: Edward Elgar Pub.