Running head: Faith and Health

"Case Study Analysis: Faith and Health"

Anonymous

University of The People

BUS 5211-01 Managing in the Global Economy

Gail Pankey-Albert

February 11, 2024

Running head: Faith and Health

Introductory Notes on " Case Study Analysis: Faith and Health"

A pious Muslim undergoing surgery in a German hospital, Abdul Hadi has many

challenges because of his cultural norms and religious beliefs (Cultural Intelligence for Leaders,

2012). Using the concepts of cultural intelligence, this case study analyzes the situation and

suggests ways to meet his needs while supporting the hospital's cultural strategy.

The Ethical Dilemma of Insider Information in Trade Credit

When presented with insider knowledge on one of her company's clients, North

Manufacturing, Kathy Ryan, a credit officer at Diversified Consolidated Corporation (DCC), is

forced to make a moral and ethical choice. Although North has a solid payment history, there

have been rumours about their financial difficulties. When Kathy visited North, Scott Bradley,

North's treasurer, confirmed these rumours and asked her to persuade DCC's rival to extend

credit to North. Scott also revealed that North had spoken with bankruptcy lawyers, but still

intended to make on-time payments to DCC. If North's credit suffers, Kathy's annual bonus and

chances for advancement are in jeopardy, and she might even lose her job.

Kathy must choose between two obligations in this situation: her allegiance to DCC and

her responsibility to behave morally and with integrity. She must choose between keeping quiet

and defending DCC's interests or disclosing insider information to Basic Products and pressuring

them to extend credit to North. Kathy might be able to help North avoid bankruptcy and settle

their debt to DCC by disclosing the information. But by doing so, she would be going against her

moral and legal obligations, and she might suffer serious repercussions like losing her job and

possible legal action.

Trade Credit Officer's Dilemma: To Disclose or Not to Disclose Insider Information

To reduce the chance of North Manufacturing going bankrupt, Kathy can let her superiors

know what she overheard from Scott Bradley. Kathy can report the conversation to her superiors.
Running head: Faith and Health

With the aid of this strategy, DCC would be able to safeguard its objectives and keep the

confidence of its constituents. In the words of Fraedrich and Ferrell (2019), "Whistleblowers

play a vital role in society, and their actions can be morally justified when they expose

wrongdoing that is in the public interest" (p. 157). Kathy can advise that other suppliers, like

Basic Products, give North Manufacturing credit by suggesting that other suppliers give credit to

North Manufacturing. This strategy would safeguard DCC's interests while assisting North

Manufacturing in staying afloat. This strategy might be immoral, too, as it entails pressuring

other suppliers to take on a high-risk client without fully disclosing North Manufacturing's

financial situation.

Kathy has the option of doing nothing and keeping the credit she has given to North

Manufacturing. She can decide to disregard what Scott Bradley told her. This strategy would

safeguard her bonus and career interests, but it might not be morally right given that it includes

giving credit to a client who might not be able to pay back its debts. Kathy has the option to ask

North Manufacturing for further information to better comprehend the company's financial

situation. This strategy would assist DCC in deciding whether to keep extending credit to North

Manufacturing. Getting more information "can help people to make better ethical decisions,"

claim Fraedrich and Ferrell (2019), p. 117.

Alternative Solution: Inquiry about Credit Histories with Other Suppliers or Publicly

Accessible Information Sources

Kathy advises Basic Products to inquire about credit histories with North Manufacturing

from other suppliers or from other publicly accessible information sources. By choosing this

option, Kathy would be able to keep confidential information private while still giving Basic

Products information they could need to decide whether to work with North Manufacturing. It
Running head: Faith and Health

does not break any laws or ethical obligations and is within the bounds of acceptable business

practice. This solution would benefit all parties involved and give Basic Products the chance to

make an educated choice. As a result, it is advised because it benefits the most people and offers

the biggest advantage. This option respects North Manufacturing's right to maintain the privacy

of their proprietary information. This solution is advised since it equally divides the stakeholder

groups' rewards and costs.

Conclusion and Recommendation for Basic Products: Obtaining Credit History Data of

North Manufacturing from External Sources

The information they acquire from other vendors or publicly available information

sources may not be accurate or dependable, which could be a barrier to implementing Kathy's

suggested solution. The time and effort needed to conduct research and compile data from

various sources could be another barrier. When gathering data from outside sources, there might

also be moral issues that come up, like violating North Manufacturing's privacy rights or

breaking the law on data protection. Basic Products might choose a supplier who is unreliable if

erroneous information is utilized to select, which could result in financial losses and reputational

harm. The relationship between the two businesses may suffer if North Manufacturing learns that

their private information has been accessed without their permission, which could result in legal

action. Finding trustworthy sources of information may also be difficult in the market,

particularly if there is little externally accessible data on North Manufacturing.

Given the limitations and moral issues involved, Kathy's suggestion to get credit history

data regarding North Manufacturing from other sources seems to be the wisest course of action.

It's crucial to check that any information received complies with ethical and legal criteria, is

accurate, and can be trusted. In addition, Basic Products ought to be open with North
Running head: Faith and Health

Manufacturing regarding their decision-making procedure and the data they relied on. This can

foster trust between the two businesses and assist to keep them on good terms.

References

Cultural intelligence for leaders (v. 1.0). (2012, December 29). Lardbucket.
https://2012books.lardbucket.org/pdfs/cultural-intelligence-for-leaders.pdf licensed under CC-
BY-NC-SA 3.0 or for download here.
Earley, P.C., & Peterson, R.S. (2004). The elusive cultural chameleon: Cultural intelligence as a
new approach to intercultural training for the global manager. Academy of Management
Learning and Education, 3(1), 100-115. https://doi.org/10.5465/AMLE.2004.12436826

(Earley & Peterson, 2004).