Business Ethics Case Study
Answer:
Introduction:
Utilitarianism
Utilitarianism is a part of normative ethics that states that right action is the one that leads most good (Barrow, 2015). It is also known as “The Greatest Happiness Principle”, that is a form of consequentialism where the action is judged completely based on the consequences (Mulgan, 2014). The given case is an analysis to understand if the installation of the “Defeat Device” in the various models of Volkswagen diesel cars is a morally correct action. There are two scenarios here. The first is that the defeat device is never found or the device is discovered.
|
The Effected |
Device is not found |
Satisfaction levels |
Device is found |
Satisfaction Levels |
|
Volkswagen |
The device installation is cheap and quick. The cars under production will not be effected. |
4 |
All the cars would have to be called back The company would lose its reputation Legal actions would be taken against the company All other cars produced by the company may be questioned. Sales may reduce drastically |
-5 |
|
Employees |
The sales would be as expected Little or no change to their regular work |
3 |
Everyone involved would be questioned. Potential threat to employment |
-3 |
|
Customers |
Each car would increase pollutants in the air, causing the customer to contaminate their own environment without their knowledge. |
5 |
Customers will not trust the company. Raise legal action against the company |
-4 |
|
Shareholders of the company |
Would get a fraction of the possible profit through the new line of cars |
3 |
Would have to sell of shares at loss or bare future losses to the company |
-3 |
|
Sales Offices |
Would sell a number of cars gaining commission |
4 |
The customers would not trust the sales team anymore and this team would be the POC for angry customers |
-4 |
|
Environment |
Would be effected with the increasing pollutants and the cause would not be detected |
-4 |
Measures to stop the emissions would be taken protecting the environment |
4 |
|
Other Diesel cars |
The VW cars would be a competition |
-2 |
All the cars emissions would also be questioned |
-4 |
|
Testing Commission |
The tests can be fooled |
-2 |
Changes to test methods need to be done |
-5 |
|
Net Happiness |
|
11 |
|
-24 |
Ratings:
|
-5: Totally upset |
|
-4: Gravely upset |
|
-3: Highly Upset |
|
-2: little upset |
|
-1: upset |
|
0: No effect |
|
1: No Happiness |
|
2: Little Happiness |
|
3: Content |
|
4: High Happiness |
|
5: Total Prosperity |
Under the increasing need to protect environment it is given that there are several environmental agencies that are making sure that car emissions do not affect the environment and hence discovering the device is bound to happen. Also from the above table it is clear that the happiness experienced due to sales of cars would clearly be overshadowed if the device is discovered and hence, it is not a good idea.
Kantian Deontological Analysis
Kantian deontology states that we are duty bound to the set of rules and principles that are laid down and hence have to act according to them regardless of the consequences (Bentham, 2014). As the manager of Volkswagen I am duty bound to report any errors that may occur in production of the cars. The ideal car emission levels are known and hence the company should make sure that the levels are maintained. Cheating an emission control test to ensure that the production of cars is interrupted is not only immoral but also illegal. If the device is fixed, it would have adverse effects on the environment which is already under grave threat. As a citizen of a country that is trying to protect the environment, I would have to strongly suggest the company against installation. Also, such actions threaten the reputation and sales of the company, which would again result in substantial financial and customer base loss which cannot be easily recovered. And the company would be tied up in legal actions, which may lead to halting production. I would hence, make sure that I gather reports on the consequences of the actions to help the company understand the issue and find ways to make the correct fix. However, after all the above is done and the company decides to go ahead with the installation, I would be duty bound to carry the orders of the company (Gray, 2012).
Virtue Ethics
Virtue ethics is a part of normative ethics that emphasize on virtue and character rather than on consequences or duty (Hursthouse, 2013). The case study is in regard to Jeff Morris who became a whistleblower along with a couple of his colleagues to expose the wrong doings of his then employer Common Wealth Bank of Australia. The act of whistleblowing itself takes a lot of courage and the confidence to stand up against an organization to act on what one believes as right.
Jeff Morris has stood up against a commonwealth bank of Australia which is a well reputed organization and had been fighting for his clients since 2008. Such actions require great courage as Jeff has to take up the responsibility to face various consequences including legal issue that would arise from the same. Also, getting a job post an incident as such can be challenging, as Jeff was not loyal to his organization. Jeff was friendly with his clients and truthful even in grave situation and stood up for what he believed with great magnanimity. His ambition was straight forward as he wanted to ensure that no one would be effected by the improper financial advice provided by the company (Van, 2014).
Hence Jeff Morris is a man of his virtue who believes in being loyal to his clients rather than the organization, having the courage to stand against the wrong doers and be truthful in his actions.
Kohlberg’s Theory of Moral Development
Kohlberg’s theory of moral development states that ethical behavior has six stages that can easily be identified, and each stage is has a clear picture of the ethical dilemma when compared to its predecessor (Kurtines, 2014). The most evident stages of moral development that can be clearly seen in case of the Jeff Morris are the authority and social order obedience driven stage and Social contract driven stage. The former states that the laws and social conventions are regarded as important and breaking the law is morally wrong while the latter states that perspectives of each person are different and ideas that do not promote greater happiness and general welfare have to be changed (Cherry, 2014).
In case of Jeff Morris, when he discovered that the values of the commonwealth bank of Australia were working against the greater good he has made sure that the actions are curbed. Also, he believed that lawful action is required against such organizations to ensure further actions in the line do not happen by any other organization as well. A demand for royal commission into banks is being made to ensure that proper legal action and correction is taken into consideration. Hence, the four and the fifth stages of Kohlberg’s theory of moral development can be clearly seen in the case of Jeff Morris.
References
Barrow, R. (2015). Utilitarianism: A contemporary statement. Routledge.
Bentham, J. (2014). Deontology; or, The Science of Morality.: In two volumes. Adegi Graphics LLC.
Cherry, K. (2014). Kohlberg's Theory of Moral Development–Stages of Moral Development.
Gray, K., & Schein, C. (2012). Two minds vs. two philosophies: Mind perception defines morality and dissolves the debate between deontology and utilitarianism. Review of Philosophy and Psychology, 3(3), 405-423.
Hursthouse, R. (2013). Normative virtue ethics. ETHICA, 645.
Kurtines, W. M., Gewirtz, J., & Lamb, J. L. (2014). Handbook of Moral Behavior and Development: Volume 1: Theory. Psychology Press.
Mulgan, T. (2014). Understanding utilitarianism. Routledge.
Van Hooft, S. (2014). Understanding virtue ethics. Routledge.
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