SEMESTER SPRING 2024

BUSINESS ETHICS (MGT610)

ASSIGNMENT NO. 01
BC-190202060

Question 1: Explain how TechEon can incorporate ethical considerations into its decisionmaking
process regarding the expansion to Asiana. Provide four specific actions or strategies that
TechEon can implement to ensure ethical business practices in the new location

ANSWER:
To ensure ethical business practices in their expansion to Asiana, TechEon can implement the
following actions or strategies:
Ethical Supply Chain Management:
TechEon can establish stringent supplier requirements and conduct thorough due diligence on
their supply chain partners in Asiana. This includes assessing their labor practices, ensuring
compliance with international labor standards, and promoting fair treatment of workers
throughout the supply chain.
Worker Empowerment and Engagement:
TechEon can prioritize the well-being and rights of workers by fostering a culture of
empowerment and engagement within their manufacturing plant in Asiana.
Collaboration with Stakeholders:
TechEon can engage with local communities, labor unions, non-governmental organizations
(NGOs), and government agencies in Asiana to understand their perspectives, address concerns,
and collaboratively develop solutions to ethical challenges.
Investment in Social Responsibility Programs:
TechEon can allocate resources towards implementing social responsibility programs aimed at
improving the quality of life for workers and communities in Asiana.

Question 2: Discuss the potential consequences for TechEon if it prioritises profit over ethics in
its expansion to Asiana. Identify three negative outcomes that the company may face because of
disregarding ethical considerations.
ANSWER:

If TechEon prioritizes profit over ethics in its expansion to Asiana, the company may face
several negative outcomes:
Reputational Damage:
Prioritizing profit over ethics can lead to significant reputational damage for TechEon. News of
labor exploitation or unethical business practices in Asiana could spread quickly through media
channels and social networks, tarnishing the company's image both locally and globally.
Legal and Regulatory Risks:
Disregarding ethical considerations in Asiana could expose TechEon to legal and regulatory
risks, including fines, lawsuits, and sanctions. Violations of labor laws or international standards
could result in legal action from affected workers, government agencies, or human rights
organizations.
Loss of Employee Morale and Talent:
Employees within TechEon may become disillusioned and demotivated if the company
prioritizes profit over ethics in Asiana. Working for a company that disregards ethical principles
can undermine employee morale, leading to decreased productivity, increased turnover, and
difficulty attracting top talent.

Question 3: Evaluate the role of stakeholders in influencing TechEon decision-making process

regarding the expansion to Asiana. Also, identify three key stakeholders who may have a vested
interest in the company's actions and explain how their prospects could impact TechEon’s ethical
considerations and strategic decisions.
ANSWER:

Stakeholders play a crucial role in influencing TechEon's decision-making process regarding the
expansion to Asiana. These stakeholders have varying interests, perspectives, and levels of
influence on the company's operations, making it essential for TechEon
Shareholders/Investors:
Shareholders and investors have a vested interest in TechEon's financial performance and return
on investment. They seek to maximize profits and shareholder value.
Shareholders exert influence through voting rights, financial investments, and expectations for
financial returns. Their support or opposition to business decisions can impact stock prices and
the company's overall financial stability.
Employees:
Employees are concerned about job security, fair treatment, and working conditions. They seek a
safe, respectful, and inclusive workplace environment.
Employees can influence decision-making through collective bargaining, labor unions, employee
feedback mechanisms, and internal advocacy efforts. Their engagement and satisfaction levels
can impact productivity, morale, and company culture.
Local Communities and NGOs:
Local communities in Asiana and non-governmental organizations (NGOs) are concerned about
social and environmental impacts, community development, and human rights.
Local communities and NGOs can influence decision-making through public advocacy, protests,
media campaigns, and legal actions. They may mobilize public opinion, raise awareness about
ethical issues, and hold TechEon accountable for its actions.