Bien, John Carlo

BSBA II-5
Module 13

Pre-Assessment: Formulate five (5) short questions on how you as a business

practitioner shall make business decisions in accordance with moral concepts and
judgments. Example: Is it true?  

1. Is it Specific?
2. Is it Measurable?
3. Is it Achievable?
4. Is it Relevant?
5. Is it Timely?

Reinforcement / Assignment: Read the case very carefully. Analyze the issues
involve and answer intelligently. 

                                            Ethics vs. Profit

              A large American company participates in a highly competitive industry. To

meet the competition and achieve profit goals, the company has chosen the
decentralized form of organization. Each manager of a decentralized center is
measured on the basis of profit contribution, market penetration, and return on
investment. Failure to meet the objectives established by corporate management for
these measures is not accepted and usually results in demotion or dismissal of a center
manager. 

               An anonymous survey of managers in the company revealed that they felt
pressured to compromise their personal ethical standards to achieve the corporate
objectives. For example, certain plan locations felt the pressure to reduce quality control
to a level that could not ensure that all unsafe products would be rejected. Also, sales
personnel were encouraged to use questionable sales tactics to obtain orders, including
offering gifts and other incentives to purchasing agents. 
                 The chief executive officer (CEO) is disturbed by the survey findings. In his
opinion, the company cannot condone such behavior. He concludes that the company
should do something about this problem. 

Questions: 

1. What are the ethical problems mentioned in this particular case and what
are the probable causes of these problems? 
The ethical problems mentioned in the first case are: every manager is
under pressure in the new regulations laid down by the top management to keep
him in his position as manager, and the other problem is that due to the new
system of the company, most of the sales staff felt pressure to reduce the quality
control of their production, which could reduce the rejection of the product.
There are the consequences of improvements to the company's method.
Perhaps the reason for this is that the organization did not contact its staff first
and foremost with each of the department's superiors on their strategies to
develop the company. First, they could ask any boss for advice or even
suggestions.
The success of the business is also the success of each employee. Ethics
must be implemented in this kind of case in order to minimize confusion by both
sides.

2. Is it all right to do something illegal or unethical to maintain the company’s

image and profitability? 
We just know that it's not right to do immoral activities. Yes, sometimes we
do illegal or unethical things for some reason, but we must not tolerate this kind
of thing. I recall a quotation that should be used in this kind of case. It says, "The
Walang Sikretong Hindi Nabubunyag! "We know that we subtly do immoral or
dishonest activities so that people may not think negative about us or the
business. We set up a corporation to make a profit. And in my situation, I'm way
happier if I got a profit from doing the right things.
 Often, I fib, but then my conscientious mind still reigns. For eg, as one of
the top managements, we need to consider several times before we decide. We
still lament at the end of the day, but if we did the right thing, we won't have the
regrets that it could bring, but instead we'll be grateful that we're already doing
the right thing.

3. If you are the CEO of the company, what would you do and why? 
I will put greater emphasis and concentrate on leadership skills
preparation and programs for non-managers and executive assistants. I will even
ask my staff what it takes to be a boss. Leaders (with or without a management
title) push the company. Over time, these non-managers and assistants have
been pioneers in every way. Therefore, since organizations are now focused on
preparation and growth, they are setting up a room full of people that have the
technological know-how to get stuff and those who has the money, tools and
expertise to drive their team and organization to growth.