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Business Ethics Case Study Assignment

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The passage discusses several unethical issues that arose at a company related to hiring practices, supplier certification, and employee termination.

The company faced unethical dilemmas regarding asking inappropriate questions during interviews, accepting produce from an uncertified supplier, and terminating an employee for discriminatory reasons.

Laws violated included those prohibiting discrimination during hiring, requiring organic certification, and protecting employees from wrongful termination.

Work-related ethics can be a problem for both employers and the employees that

they affect. The firm has several factors arising during the video there are two new HR

employees, salsa sales are low, there is a new supplier of tomatoes, and an associate will need

to be terminated. Throughout the hiring, producing, and termination process several unethical

issues surface, using ethical reasoning, that should be solved morally and efficiently. The

business ethics video portrays many problems that can arise in a workplace during any given

period and the choices that are made to correct and avoid these situations is vital to the

security of any employer and its employees.

In the first unethical dilemma, James, the treasurer of the firm interviews two prospects

for HR positions. James mentions personal information regarding the marital status because the

boss likes “stable employees.” The EEOC [Equal Employment Opportunity Commission] says

that federal law does prohibit covered employers from basing hiring decisions by sex. (Cross &

Miller, 2018). In accumulation to the EEOC statement, many states have broader discrimination

laws making that type of question flatly illegal. As an employer I would enforce an ethical code

of conduct where an applicant’s information must be kept confidential, and that all applications

must keep up to standards with The Equal Employment Opportunity Commission (Cross &

Miller, 2018). James and the boss will read and understand the EEOC laws and need to

implement a code of ethics that will assist in exercising the proper way to handle personal

information.

The second immoral situation that appeared would be when James chose to do business

with an uncertified supplier despite discovering that the farmer did not have the proper

documentation to prove that the produce was organic. In this case, James reached out to a new
supplier, Walter Burns, in New York that would offer tomatoes at a much lower price than his

current supplier. James told Jane he would get the certification from the farmer and to accept

the shipment so they can get production moving, even though they don’t have the

documentation. The company needs to proceed with caution because it is illegal to sell the

salsa under the USDA code. The code states, “If you are not certified, you must not make any

organic claim on the principal display panel or use the USDA organic seal anywhere on the

package” (The Worker Adjustment and Retraining Notification Act, n.d.). Walter conducted an

unethical practice when he lies to James because under Utilitarianism; he wasn’t doing the

greatest good for the greatest number of people, he was only doing what was best for himself

and his business (Cross & Miller, 2018). James was unethical in this situation because he agreed

to do business with Walter and accept the shipment without getting the organic certification.

Manufacturers have an obligation to consumers when they state where and how a product is

produced and it is unethical and illegal because the company can not say that their salsa is

organic on a label if the tomatoes are in fact not organic (Organic Labeling, n.d.). As an

employer, I would first discontinue any relations with the supplier, and for further contracts, I

would state that all suppliers must be certified organic. If there were any additional changes in

suppliers, they would have to be authorized by the appropriate office before proceeding.

The last unethical problem occurred when the boss and James realized that the budget

would not be met unless an employee was terminated. Downsizing is a regular occurrence in

the business world, but there are legal ways to go about the process. The company began the

process correctly by discussing pros and cons of work-related actions, but then considered

personal aspects of each member. The two men collaborated and explained that Gretchen had
a husband who worked and then said that Robert was the “sole breadwinner for his family” and

his child has a health issue. The boss and James suddenly decide to fire Gretchen because

Robert needed the income more than her. The act of conducting business in this manner is

unethical because of wrongful termination laws that protect employees for discriminatory

reasons (Cross & Miller, 2018). As an employer, all information based on the employee’s

personal life would be kept confidential, and any decision to terminate an associate needs to be

based on workplace performance. The violation could leave the firm to pay a hefty fine, pay

Gretchen her salary missed, and re-hire her at her previous pay. Another safeguard is that the

employer needs to give her a 60-day notice under The Worker Adjustment and Retraining

Notification Act, so she has time to find another job (The Worker Adjustment and Retraining

Notification Act, n.d.). The proper handling of this situation needs to be to distribute an

employee handbook to ensure that employees are aware, investigate before terminating to be

sure that policy is being followed, know the law because mistakes can be made that are very

costly, and put the employee on notice.

All the issues displayed in the video have portrayed not only unethical behavior but also

an illegal act by the company. Often businesses conduct shady practices that depict some

immoral action, and it goes unreported because individuals are too scared to move forward. In

most cases, unethical issues are not solved because of the consequences of being fired or being

looked down on by co-workers and management. Immoral actions in the workplace can cause

harm to future sales, employees, and trust between the company and consumers. To prevent

unscrupulous issues from happening in the first place, it is crucial that the business enforce

contracts and a code of ethics.


References

Cross, F. B., & Miller, R. L. (2018). The Legal Environment of Business: text and cases.

Boston, MA: Cengage Learning.

Organic Labeling. (n.d.). Retrieved October 09, 2017, from

https://www.ams.usda.gov/rules-regulations/organic/labeling

The Worker Adjustment and Retraining Notification Act. (n.d.). Retrieved October 09,

2017, from https://www.doleta.gov/programs/factsht/warn.htm

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