Introduction

The moral standards, laws, and ideals that control how businesses and people conduct
business are known as business ethics. Establishing a code of conduct that guides employee
behavior at all levels and fosters customer and business trust goes above and beyond
regulatory obligations (Twin,2024).
This situation presents a predicament for Tony, who has to make a choice that has moral,
legitimate, and proficient suggestions. On the one hand, he needs to guarantee that the item
meets all administrative guidelines and maintains the astuteness of his work as a test build.
On the other hand, he is constrained by the phone company's president, who encourages him
to endorse the item despite its disappointment in meeting the administrative necessities for an
interferometer with commotion transmittance.
What is a legal issue?
Legal issues are things, questions, or issues that can have legitimate suggestions and possibly
result in a claim. In business, legal issues emerge at whatever point the company needs to
comply with existing laws and controls. The industry has numerous legitimate issues, such as
workers or enrollment (Bohrer,2022).
What are ethical issues in business?
Any moral difficulties a firm encounters are considered ethical issues. When an organization
stands firmly against implementing common moral issues, like segregation, it can help create
a more welcoming and stable work environment for everyone. This could also help to change
the commerce in general.
It is critical to distinguish between ethical and legal issues, which companies of all sizes
share. Unlike legal matters, ethical matters center on values and an individual's interpretation
of what is right or wrong rather than being directly tied to the law.
Legal issues typically precede ethical ones as they can quickly develop into costly and drawn-
out disputes.

There are two decision scenarios in the case study.

Action Positive Implications Negative Implications

Approve the 1. The company holds 1- infringement of astuteness and

product the contract and moral guidelines.
despite failing potential wage 2- Potential lawful
the test increase. consequences for Tony and
2. - Occupations are the company.
secured for agents of 2- Hurt to customers if the item
the phone company. doesn't meet security benchmarks
(Ethical)
Refuse to Respecting moral principles It will be an unfortunate contract and lost
approve the and honesty. revenue.
product based - Adhering to consumer - Reasonable disasters at work for
on test results protection laws and employees of phone companies.
regulations. - Tense relationships with the president
and Tony's possible employment
outcomes.
In light of the moral and legitimate issues, it is exhorted that Tony select the moment course
of activity to deny or endorse the item based on the test that comes about. Even though there
may well be prompt troubles, doing this jams ethical standards, complies with the law, and
shields clients. Also, working with the phone supplier to discover interchange arrangements
to the impedances issue can result in a compromise that fulfills ethical and commercial needs.

3. Discuss the importance of ethical and legal behavior in the context

of Tony’s ethical and legal dilemmas.
The ethical measures and standards that coordinate corporate conduct are called business
ethics. It incorporates everything about how businesses carry on, counting decision-making
and corporate social obligation. Research has consistently shown that companies with solid
moral standards perform way better than those without since they have a higher partner back,
staff maintenance rates, and client devotion (Manelkar,2023.
Tony finds himself in a challenging moral and legal situation, and the significance of ethical
and lawful behavior cannot be exaggerated in this setting.

1. Ethical Importance:
 Integrity: Integrity in trade makes strides in a company's notoriety, which can offer
assistance to draw in and keep clients, rouse devotion among staff individuals, and
provide more to speculators (Farnham ,2023) . Adulterating information harms
Tony's company's notoriety and the industry's immense capacity to certify things with
exactness. It routs the objective of quality control testing.
 Consumer Protection: The law about consumer protection shields consumers against
deceptive business activities that hurt consumers in the marketplace. Legislation and
rules are involved to stop companies from engaging in unfair, dishonest, or fraudulent
sales and other related activities(liberto,2023). Tony's company's primary goal is to
test products to satisfy regulatory standards and shield consumers from dangerous or
subpar goods. Suppose Tony would unethically approve any product that does not
meet these standards. This would breach ethical responsibility.
 Professionalism: Work professionalism reflects genuineness, grit, obligation, and
ethical conduct. It is the capacity to act freely and maintain beneficial work hones
(prioritize, organize, and oversee workload; be on time).Tony's professional and
business reputations will be in jeopardy if he accepts the manager of the cellular
company's offer to return the phones even if the tests are unsuccessful.
  Legal Importance:
1- Compliance and Corporate Liability: Within business ethics, compliance typically
refers to a business's or an individual's adherence to pertinent laws and regulations, or in other
words, abiding by the rules established by the government. Focusing on compliance also
means that personnel should comply with the organization's internal norms in a slightly
broader sense(MacDonald,2018). If he accepts the offer, legal repercussions for Tony and his
business might include penalties, litigation, and reputational harm.

3- State the two choices Tony can make. Identify and explain the ethically
and legally sound choice. Which ethical lens is employed to perceive the
dimensions of Tony’s choice?
Tony has two options available to him:
1. Approve the product despite the test failure
o Positive Implications:

-The company will hold the expansive contract, with a potential income increment.
-Employment is secured for representatives of the phone company.
o Negative Implications:

Infringement of judgment and moral measures.

Potential lawful results for Tony and the company.
Hurt to shoppers in case the item doesn't meet security measures.
2. Refuse to certify the product based on the findings of the tests:
o Positive Implications:

They will maintain integrity and moral principles during the testing procedure.
Further, they will guarantee consumer protection and abide by legal requirements.
o Negative Implications:
Forfeiture of the big contract and possible earnings.
Potential job losses for phone company staff members.
Tense relationships with the president and Tony's possible loss of employment.
Tony should ask for advice on the appropriate course of action from coworkers, managers, or
the company's ethical committee. This guarantees a group approach to moral judgment. It is
also crucial to look into alternate moral and commercial concerns options. This could entail
carefully collaborating with the phone provider to locate and resolve the interference problem
without jeopardizing the integrity of the data.

Ethically and Legally Sound Choice:

Tony should decline to approve the product based on test results; this is the morally and
legally correct decision. This choice is in line with moral precepts like accountability,
professionalism, and integrity. Legally speaking, it guarantees adherence to rules and puts
consumer safety ahead of immediate commercial advantage.
Ethical Lens Employed:

Tony's choice was viewed through an ethical lens focused on duty-based ethics or upholding
one's moral commitments and duties. Tony is required to maintain the integrity of the testing
procedure in this instance, adhere to legal requirements, and put customer safety first.
Refusing to authorize a product that does not stick to regulations shows dedication to these
responsibilities despite the temptation to renege on moral obligations.

A consequentialist viewpoint may also be considered in which the possible harm to customers
and the long-term harm to the business's reputation surpass the immediate financial rewards.
Tony puts the long-term viability of the industry and the general sound effects on society first
by declining to approve the product.

In conclusion, Tony's predicament highlights the necessity of upholding strict norms of

behavior in the testing and certification procedures due to its ethical and legal implications.
People and organizations' long-term profitability and credibility in the quality assurance
industry largely depend on upholding integrity, guaranteeing consumer protection, and
adhering to regulatory requirements.

Reference:
Bohrer L.(2022,September 26). 9 common legal issues in business and how to prevent them
Reference: https://www.lano.io/blog/9-common-legal-issues-in-business-and-how-to-
prevent-them
Farnham k,(2023,June 3). Business integrity: What does it mean, and why does it matter?
Retrieved from: https://www.diligent.com/resources/blog/business-integrity

Manelkar S,(2023,March 10). The Importance of Business Ethics: Why Ethical Conduct is
Critical to Success.Linked in
Retrieved from: https://www.linkedin.com/pulse/importance-business-ethics-why-ethical-
conduct-success-manelkar/
Twin A, (2024, January 25). What Is Business Ethics? Definition, Principles, and Importance

Reference: https://www.investopedia.com/terms/b/business-ethics.asp

Liberto D,(2023,August 16). What Are Consumer Protection Laws?

Retrieved from: https://www.investopedia.com/articles/pf/10/know-your-consumer-

protection-laws.asp

MacDonald, ( 2018, April 30). The Concise Encyclopedia of Business

Ethics. https://conciseencyclopedia.org/entries/compliance/