Business ethics

In a compiex, multicultural business environment, it is important that business professionals adhere to
ethical standards throughout their daily activities. The goal of this course is to introduce you to concepts
and guidelines for ethical courses of actions in business. In order to assess understanding, you will analyze
the ethical and socially responsible courses of action for the business scenario below. You will take on the
tole of human resources (HR) director of the firm to discuss the situation, propose ethical guidelines for the
organization, and analyze possible solutions to address the ethical dilemma for the company.
TechFite, a British company that produces high-technology goods, recently began production of its
innovative recreational equipment in its first U.S. factory in Deliberg. TechFite is widely known for its culture
of workplace collaboration and leadership development. Additionally, the company culture encourages
employee empowerment and engagement in corporate decision making. The company also prides itself on
being actively involved in the communities in which they have a presence.
As the human resources (HR) director of the new factory in Deliberg, you soon realize there are financial
obstacles that must be addressed as it relates to hourly employees. The budgeting process has
constrained the amount of funding available to provide full-time employee benefits, and hours have been
reduced to keep many employees classified as part-time. The HR department needs to develop policies to
address the legal and cultural differences between the United States and the United Kingdom pertaining to
hours and benefits. As the HR director, you are grappling with the ethical obligations to your employees
and the limited funds available. Upon a review of the budget, excessive bonuses are being paid out to top
executives

During one of the company’s presentations to the Deliberg city council, commitments were made to /
sponsor community events, to support local youth leadership development programs, and to invest in
infrastructure to aid in the rebuilding of the city of Dellberg utilizing environmentally responsible techniques.
Up to this point, these commitments have not been addressed or funded by TechFite. The leadership team
realizes the importance of community involvement and this commitment is central to their corporate culture.
A plan needs to be developed to meet the company’s corporate social responsibility to the city
While residents of the city were excited about the company’s investment and the opportunity for new jobs in
a bankrupt city, relationships quickly began to deteriorate when employees began to complain about
wages, benefits, and weekly hours that fell far below the 40 hours necessary to receive full-time benefits
under company policies. In addition, the company is not fulfilling the commitments it made to city officials
about community involvement
As part of its launch into the United States, TechFite realizes that corporate actions must be consistent with
company culture to gain acceptance. Two primary focuses will be making this a great place to work and
developing a strong presence as a company that is good for the community.

A. Create three corporate policies that reflect the organization’s culture and ethical viewpoints.

  1. Explain the rationale behind the policies, including how they align with the organization’s culture.
  2. Distinguish between ethical and legal issues.
  3. Analyze the ethical issues at stake in the scenario (e.g., conflict of interest, misuse of resources,
    whistleblowing).
  4. Describe the purpose of the ethics officer.

B. Describe corporate social responsibility and how it applies to the scenario.

  1. Explain the ethical desirability of improving the company’s reputation in the community based on the
    scenario. The explanation should include three supporting examples of what the company has done or
    failed to do that has harmed its image in the community.
  2. Describe an ethically, socially, and environmentally responsible course of action to address each
    example from part B1 based on the company’s culture and core values.
  3. Explain how the course of action from part B2 is ethically, socially, and environmentally responsible.

Sample Solution

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