Professional Documents
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Ethics and Business Ethics Mini Case Stu
Ethics and Business Ethics Mini Case Stu
Lecturer
Dadabhoy Institute of Higher Education
ETHICS
&
BUSINESS
ETHICS
Mini Case Studies
By
Muzammil Ahmed
All characters appearing in this work are
fictitious. Any resemblance to real
persons, living or dead is purely
coincidental.
DEDICATION
I dedicate my this work to DIHE,
my learning and work place and
specially its students
without whom I would be nothing.
PREFACE:
Welcome to Business Ethics. Most of the people may not be familiar with the word
Ethics and its meanings. Ethics is the study of morality. It’s common to hear from
people to say that Business Ethics is an oxymoron, means contradiction of terms.
They might say Businesses don’t have ethics! But, it’s not true because business
people do not want to think about ethics.
I feel great pleasure in introducing the work “ETHICS & BUSINESS ETHICS”---Mini
Case Studies. This humble effort expects to raise great hope for individuals in all
fields especially Management Sciences.
I think there is a great need to work on ethics in businesses to raise productivity and
profitability. In Islam, Prophet Mohammad (SAW) has demonstrated the practical
application of ethics in Business. The results achieved by following the guidelines
given in our religion will bring happiness and prosperity.
Ethics is a vast subject and it was not possible to cover all the aspects in this work
but efforts have been made to arouse interest and create realization of the need for
ethical practices in business through short case studies.
The case studies on ETHICS & BUSINESS ETHICS” is based on the practices
(ethical or unethical) in business and our daily life. These case studies have also
been presented in the course Business Ethics of MBA program and can also be
presented in other courses of Management Sciences.
The response from the business students has been very encouraging during the
course. I am grateful to all my students who took keen interest and helped me in
developing case studies on Business Ethics in the light of their analyses and
discussions.
I hope that experts from all fields will devote their time and energy to develop this
work further, for the service of humanity.
Muzammil Ahmed
Lecturer/Program In charge
Business Administration
DIHE
CONTENTS
1. Food shortage
2. Professional Behavior
5. Decision making:
7. Moral attitude
Food shortage:
Rana is a sharp minded business man. He is quite updated and seeks opportunities
to earn money. Along with his business activities he is also engaged in the social
circles around him. He is an active member of several NGOs and welfare societies.
Donating a part from his income on welfare work is his practice.
After few hours of his arrival, he is informed that few heavy vehicles with food items
from different NGOs are on the way to supply food free of cost. The poor people are
still unaware of this news and not expecting help from the government and
independent welfare bodies.
Rana can make a huge profit if he does not tell the locals about the incoming of the
vehicles to supply food. Informing people will give him nothing.
Question:
Professional Behavior
Asma, one of the junior female staff members of an organization returned back and
joined after taking special leaves to take care of her mother who is ill, dependent and
needs special care. She has to work full time for financial reasons. She has been
facing difficulties in managing her mother’s home care arrangement. Due to this she
usually misses team meetings which usually take place early every day. With late
comings, she has to leave work place early. She is hard working and competent in
her work but her absences cause pressure and over workload on her colleagues.
You are the manager and you are aware of the practice causing different
disturbances around. A few male colleagues have started making comments such as
“a woman’s place is in the home”, and is disappointing and discouraging her at every
opportunity, putting her under greater stress.
Question:
How would you handle the situation to protect Asma without discrediting yourself,
your profession or the practice for which you work?
Zafar comes to know that Badshah Khan, a politician having criminal background
dies. Few years ago, Zafar’s best friend was shot dead during a riot allegedly
orchestrated by Badshah Khan. An order passes from Governor House to all the
District offices of the city, to keep National flag at “half-mast” over their offices, to
mourn the death of Badshah Khan.
Zafar gets angry with such degradation of the National flag after watching this news
on TV. He decides to stay at home next day and keeps the door keys of roof top with
himself. Zafar is confident and thinks “this was not part of my official duty; I was
performing extra work so no formal punishment can be given to me. Commissioner
Sahab will definitely scold me informally but I don’t care because Badshah Khan
killed my innocent friend”.
Question:
Aslam receives a grant of Rs five lacs from government for a project to teach those
children who are out of school and doing odd jobs like working at tea-stalls, washing
cars, do boot polishing etc. The granted money is for a year only.
After a year, Aslam managed to utilize only three lacs from the grant and according
to terms and conditions on the agreement paper he has to return the unspent
money.
Aslam is an honest man. Despite putting all his effort he couldn’t convince parents to
join his NGO for this project.
a) If we return back the unspent amount then government may not grant us for
any project next year.
b) Our reputation will be at stake and government will put our name in the
category of in-effective NGOs.
c) Most of the NGOs are having the same practice, no objection will be raised.
d) We should consult a Chartered Accountant to manipulate our Accounts Book
showing no amount left from the grant for project.
e) Even, official in charge of this project will not come to us for an audit if a little
percentage from the grant is given to him.
f) We will not utilize a single penny on our personal needs; the remaining
amount will be spent on street children only.
g) In brief, not returning unspent money is ethical and justified.
Question:
Should Aslam return back the unspent money to government from the grant or
not? Justify
Decision making:
Zia is an intelligent young man with lots of qualities. He is consistent and determined.
Qualifying civil services exams is one of his dreams. He was working with an IT
company but he quit his job and started preparing for the exams to make his dreams
come true.
In the first attempt he couldn’t score desired marks in the optional subjects. In next
two attempts he couldn’t qualify for the personality test and interview. In the third
attempt he was expecting to be in the final list.
According to rules he had the last chance to attempt for the CSS exams. He decided
to take a break and not attempting in the fourth year. He put all his efforts to make
himself competent. He started preparation with groups having the same goal. He
also started taking coaching classes to prepare himself for personality test and
interview. He was so determined as he had spent five years for CSS exams with no
job.
Luckily, in the fourth and last attempt he passed all the optional and compulsory
subjects as well and made himself eligible for an interview, the last stage. He read
widely. He contacted experts and consultants, discussed with them extensively and
took feedback on his grooming, body language and communication skills. He was
quite confident. Within few days he received an interview call letter, he was mentally
prepared and confident to face his final test.
On the previous day of his interview, he was relaxed and had a sound sleep. The
next day he was relaxed and calm as his interview was scheduled in the second
session i.e. in the afternoon.
He had his lunch with family with a happy mood and left home driving his old bike as
he wanted to reach the venue before half an hour of the time given to avoid any kind
of difficulty and risk. Zia was driving his bike with safety having lots of thoughts and
dreams in his mind. The road was almost empty. On the way, a speedy bike collided
with the footpath in front of him. Zia stopped his bike and rushed to the accident
scene. The man was seriously injured and crying with pain. The blood around the
accident could be seen. With that man, a girl around three years was lying around
him and was unconscious. Zia looked around to help them and tried to stop two or
three cars to take them to the hospital but not a single car stopped to help him.
Zia had only 20 minutes left to reach the centre for a final interview. Helping out the
victims would lose his dream of becoming CSP officer.
Question:
The construction is about to complete. The investigation shows that the construction
is illegal and according to the laws it must be demolished. The poor villagers
contributed from their savings to construct that structure.
The demolition of the structure might lead to communal clashes in the village and it
would cause inferiority complex, discrimination and sense of insecurity in the
villagers.
Question:
Moral attitude
Zahid comes back to his village after having intense training for joining a charity
based welfare association to have a nice time with his only friend, Fareed, who is
preparing for the civil services.
Zahid is always a nice dresser and as usual he is wearing a clean white shirt with
expensive pant and branded shoes. They visit to a roadside tea shop to have a cup
of tea.
A nine years old boy works at tea shop brings two cups of tea with biscuits to them
on his master’s order. Zahid is on a phone call, unaware of his standing behind him,
accidently touches the tray carrying tea cups. Hot tea spills over his white shirt and
cups are broken into pieces on the ground. The owner of the shop beats the boy
badly with a stick in front of all.
Question:
What would be your reaction as a human being keeping yourself in Zahid’s place?
Yousuf is an honest person and a man of principle. He was never involved in such
kind of practices before. Farhan humbly requests his college Principal to consider his
case to save his career.
Question:
Should Yousuf revise his score to 80% realizing his future career or let him suffer
following rigid rules of the college? Justify.
Faraz is an obedient son of his parents and takes care of them. After a long
sickness, his father was taken to the hospital where doctors diagnose him lungs
cancer. Now, his father is on chemotherapy.
Faraz is facing financial problems. Half of the salary is spent on his father’s
treatment. He starts borrowing money from friends and relatives to bear the
expenses. His mother is depressed and due to continuous depression, she has
become heart patient.
The company explores his talents and recognizes his hard work with dedication. He
is offered a posting in USA where the company’s headquarter locates. He is offered
a job of higher designation with handsome salary in US dollars.
Faraz becomes excited, by availing this opportunity he can get rid of financial
problems in a short time. He decides to leave for USA. He has got few days to
depart and joining. He takes his parents into confidence and convinces them to let
him go happily. He also promises to send them money every month. He plans to
take his parents with him to USA after few months, if all goes well.
His father reaches to the last stage of the cancer but he decides to leave to resolve
the financial issues. On the day of departure to USA, just before an hour of his
boarding time, he receives a call from his mother. She tells him that his father needs
treatment and would die if not taken to the hospital immediately. Faraz is not sure
whether his father would survive or die even he is taken to the hospital right away.
Faraz is confused now, if he takes his father to the hospital and misses the plane
then he may not get an opportunity again like this. If he decides not to miss the plane
and leaves for USA, then he could manage all the financial problems including huge
debt that has to be paid off.
Question:
Nazia notices that one of the Directors has started paying extra attention to her. The
different kind of behavior by the Director can only be seen with Nazia. He also
approaches Nazia through social networking sites. Besides this, he sends friendly
messages and jokes to her via mobile phone. He has invited Nazia to his home
many times for a party. Some of the co-workers have started passing comments to
Nazia about the extra care and attention paid by him.
Although, the director has not done or said anything explicitly inappropriate but
noticing by the co-workers, comments and working with him making Nazia
uncomfortable. At the time of hiring she was told to report her manager if she feels
any difficulty and issues. Nazia is afraid to make complain in writing as he has not
done explicitly wrong with her. Nazia is quite satisfied with the office environment
and salary offered to her. She expects promotion and grooming in future and any
action against the Director could put her in trouble surviving in the same
organization.
Question:
The manager knows Shakeela personally and has a soft corner for her; however, he
would not recommend his own company hire her back.
Questions:
I. What should the manager say to the employer who calls him for Shakeela?
II. What if the employer was manager’s friend?
III. If Shakeela asks her manager to be a reference before applying somewhere
else, what should be manager’s response?
IV. What should be manager’s role in resolving Shakeela’s issue keeping the
dignity and image of his company positive and transparent?
Question:
Zahid is aware of this problem by the software installed and reported to his
Department Head, Waleed several times before. Waleed is in favour of that software
and the only supporter and has been providing positive feedback to the CEO about
its performance.
Waleed asks Zahid to draft a reply to the letter that should support the system. It
should say that the system is performing well with desired results.
Zahid is confused and mentally disturbed. He wants to give the true facts to the
higher management about the performance of the system and does not want to hide
anything. Zahid has worked very hard to get the promotion and Waleed, being a
department head, supported him as well to achieve that position. If Zahid goes
against Waleed then his career could be at stake.
Questions:
Usually it takes a week to train the fresh employees. The bank has also provided a
room for this purpose facilitated with equipments. The trainees are trained with
written and audiovisual material provided by the bank. The bank takes the test at the
end of every training session. The failed employees have to attend the session again
in order to give the satisfactory performance in their work. The employees cannot
participate in the different bank operations until they pass the test. The class usually
consists of ten to twelve trainees.
Today, after two days of a session, Bilal has been hit with a serious complaint.
Alan Desoza, one of the newly appointed employees for the bank belongs to
Christian Community. All the other trainees are Muslim. Alan feels difficulty in
learning as much of the training involves quizzes and computer work. Bilal is a very
cooperative teacher and wants Alan to improve and explains how to correct
mistakes. Alan takes it negatively and does not like Bilal’s constructive criticism. Alan
thinks he has been treating differently because of his community. Alan decides to file
an official complaint if Bilal does not pass him and signs satisfactory report.
Question:
Change Management:
Sameer has been performing well in an organization as an Assistant Manager
Accounts since his graduation in finance. He has spent around five years in that
organization. With the passage of time Sameer has learnt the ways to survive in
such a conventional bureaucratic environment.
Haris, an experienced and competent employee who has recently joined this
organization as a manager accounts. His reputation is good and famous for
organizing and improving the daily operations in the previous organization. He has
been appointed on a pay scale with benefits better than the last one. Haris is self-
motivated and determined to bring changes in the department that will increase the
productivity and efficiency of accounts.
Haris calls Sameer to his office next day and says to him that he will not tolerate
those subordinates who are not in the interest of the company and do not want to
work as a team. Haris says to him that it will be taken seriously if he tries to be a
barrier in implementing new system that is more effective and productive. Haris
warns Sameer to leave or improve.
Question:
Salman is a middle aged person having three school going children. He is a bread
earner of his family and the survival totally depends on his salary. Due to his below
average performance his salary has not been raised since the last few years. Hasan
knows very well about Salman and his family.
The meeting of the board of directors is held regarding annual increment in the
employees’ salaries. Evaluating each employee’s performance is one of the meeting
agenda. The meeting is chaired by Chairman, Hasan.
When the discussion comes to Salman, the board gives suggestions not to raise his
salary due to his poor performance throughout the year. Saeed is against the board
and its suggestions. He says that not raising any employee’s salary for many years
is unethical and cannot be justified. He supports Salman by saying that he has given
more than fifty percent of his professional life and he deserves promotion as well as
increment. Saeed suggests Chairman Hasan to fire Salman or promote him. Saeed
strongly believes that not raising salaries is a demotivating factor and has a negative
effect on employee’s behavior and performance. Saeed suggests Chairman Hasan
to love or leave him.
Unfair treatment with its employees by taking too many hours of working
against very low wages. Tasty Meal has no difficulty in hiring its employees on
low wages due to poverty and unemployment in the region. It has also been
criticized for taking work from children against one time meal. The situation is
even worst in under developed cities of the country.
Meals served are mostly junk food, oily, having high calorie and could cause
health issues if eaten regularly.
Tasty Meal is not even environmental friendly. Using disposable stuff like
wrapping paper, straws and tableware are comparatively cost effective but
harmful to the environment, especially those which are non-recyclable. It has
been criticized for over packaging and using extra wrapping papers.
Questions:
I. Do you think treating employees in Tasty Meal is unfair? Justify. Keep the
unemployment factor, poverty and economical environment in mind.
II. Should Tasty Meal be accused for health issues by providing unhealthy food?
(Note: Tasty Meal never sells its product forcefully. Customers have choices)
III. Do you think Tasty Meal is running an ethical and socially responsible
business? Why or why not?
Questions:
The Sea Shells gets good business during the months of Spring and specially
Summer and there is a decline during the months of Winter. Junaid, the owner of
Sea Shells wants to improve sales during the off-season months. He formulated a
few strategies to attract more customers and enhance sales. One of his strategies is
making waitresses’ uniform more seductive and revealing. He expects from
waitresses to wear low-cut and sleeveless tops with tight-fitting jeans.
The sale improves by turning plans into actions including new uniform. But, few
issues have also been observed. The incoming of male customers is greater than
the families. Customers make abusive remarks to the waitresses. Zara is tired of
such practices by customers but cannot leave the job. She wants to complete her
studies by the end of this year to grab the better opportunity as another part time job
with such flexible timings is almost impossible at this level.
Questions:
In the fourth week Hina had an opportunity to work with the department of Research
& Development. She spent time with marketing research group and listened to the
discussions with regular customers.
After a week Babar, Marketing Manager asks Hina to work on the packaging of the
fairness cream that is to be launched next month. Babar instructs her to design and
mentioning the desired results by applying the cream thrice a day. Hina is excited to
get the first challenging task. Now, the time has come for Hina to prove herself.
When Hina starts working on the task given, she recalls that consumers interviewed
by the department of Research and Development, revealed the fact that just one
application a day really worked. She is confused and thinks that changing the actual
facts on the packaging will increase the sales volume but will not benefit the
consumers.
Questions:
II. What should Hina do as she is working for a leading cosmetics manufacturer
and has to prove herself by following the directions given?
Hamza has several plans to sell. One of the insurance products is a plan that is a
combination of savings and insurance both. Hamza is convinced and focused more
to sell that plan because company also appreciates and encourages more to its
sales representatives by giving handsome commission on its sales. The product
promises to protect the family in case of premature death as well as a good return on
investment after retirement.
The language used in the agreement paper is hard to understand. Usually, clients do
trust on Hamza and do not read the agreement thoroughly. Hamza knows the facts
very well. The product is expensive and provides a little protection in case of
premature death. Another disadvantage of having that product is a low return on
investment after its maturity. The company pushes its sales because it is more
profitable. Hamza has other cheaper products to sell that can give more benefits to
his clients including greater protection and return but the commission on sales by the
company is too low.
Hamza cannot earn more if he sells products considering consumers’ benefits. His
family will suffer if he thinks good for others and the management frowns on cheaper
policies being sold.
Questions:
He faces problems while delivering lecture to students. He notices that few students
are not up to the mark. Their educational background is quite weak, therefore,
unable to absorb and understand what he says. On enquiring he came to know few
strange facts. Admissions were granted to all the students even to those who could
not qualify the entry test. The instructions were given by the Director Admissions.
Rehan discusses his problems with one of his friends who suggests him not to take
extra classes as he is not responsible for their educational background.
Question: