Business Ethics Case Study Assignment
Business Ethics Case Study Assignment
Business Ethics Case Study Assignment
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
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
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
Cross, F. B., & Miller, R. L. (2018). The Legal Environment of Business: text and cases.
https://www.ams.usda.gov/rules-regulations/organic/labeling
The Worker Adjustment and Retraining Notification Act. (n.d.). Retrieved October 09,