CASE Study 2

First Case

XYZ Shoes, Inc. has specialized in shoes for children and is a leading brand in the market. The
company is located in a mid-size US town, has been committed to its community for many years,
and sponsors local educational and health programs for children. As is common in this industry,
most of the company’s shoes are produced outside the US by various suppliers. XYZ Shoes has
recently learned that one of its suppliers is employing a number of children under the age of 14.
In a team meeting, consequences are discussed. Some team members suggest stopping
cooperation with the supplier immediately, as the employment of children is violating XYZ
Shoes’ code for suppliers as well as international labor standards. Other team members have
concerns about this suggestion. The supplier is the only employer in a very poor area, and the
children and local communities would suffer from the termination of the contract. They suggest
that XYZ Shoes should work with the supplier to fix the issue as follows: XYZ Shoes should ask
the supplier to remove the children from the workforce, sponsor an educational program for the
children, and support them financially while they go to school. Further, the supplier should
agree to rehire the children after they turn 16 and have finished school. This action would
require that XYZ Shoes devotes some funds to oversee and ensure the proper implementation
of the program for the children. The team needs to decide what action to pursue: Stop
cooperating with the supplier immediately (option 1) or work with the supplier to fix the issue as
suggested (option 2)?

SECOND CASE
free chocolate cake
Jamie, a professor at a distinguished university, got a research grant from a major
public foundation. The grant includes the possibility to invite colleagues from other
universities for research workshops. After one of these workshops, Jamie invites her
colleagues to a restaurant, and pays using grant money, which is in line with the rules
of the grant and university policies. At dinner, Jamie orders two chocolate cakes with
the intention to take one cake home and give it to her husband. She argues that there
are no rules against this practice.
Identify:

1)

2)

1. Facts
2. Issues
3. Alternatives
4. Stakeholders
5. Impact
6. Guidance
7. Action
8. Monitor Outcomes

1. Facts: What are the facts? What are the biases or unverified assumptions? Often times,
one is faced with pieces of information and it is the decision-maker who must recognize
that, together, these facts comprise an ethical issue to be explored and resolved.
2. Issues: What are the issues in this scenario or case? Which ones present ethical
challenges? The challenges might arise through facts, as above or, alternatively, a
decision-maker could be presented with an ethical issue about which she or he must
gather all relevant facts. Whether the facts give rise to the issue, or the issue is presented
and the decision-maker must gather the facts, an appropriate resolution requires
comprehensive awareness of both elements.
3. Alternatives: What viable alternatives are available? Think “out of the box” and
consider
what might be some more innovative alternatives that would not ordinarily present
themselves. Strive to move beyond those that are presented to you to those that you or
your organization can create anew.
4. Stakeholders: Who are the stakeholders involved in connection with each alternative?
Be aware that different alternatives might implicate new stakeholders; therefore, who
affects or is affected by each alternative? Who has the power and how might it be used
most effectively? Are there some stakeholders who are more important in this instance
than others? If so, why?
5. Impact: Examine the impact of each alternative on each stakeholder.
6. Guidance: At this point in the decision process, you have gathered information and
have applied stakeholder processes to analyze potential outcomes. Additional assistance
maybe available from external sources or other resources:
a. Guidelines from your profession, your organization and your own espoused
values
b. Guidelines from your own values prioritization and those of your organization or
profession.
7. Action: What is the best or “least worst” choice? Which is viable, practical, and
achievable? (See questions below.)
8. Monitor Outcomes: Now monitor the resulting outcomes, both short-term and
longterm. What might have to be changed? What was worthwhile? Can this be used as a
model for other firm and managerial agendas? How could you use each decision as a
basis for learning, development and training processes?

3) Moral Judgement based on which theories?

• Utilitarianism
• Rule-Based Morality
• A Rights Approach
• Virtues and Virtuous Character
• Social Justice

4) Questions
1) What would be the ethically better way to act? Apply the utilitarian method

2) Is Jamie’s action ethical? What are potential economic implications of this action?