Question

Sam, one of your senior professionals, has resigned unexpectedly to join one of your competitors. He was responsible for transaction with Magnolia Corporation, where he has a close relationship with the CEO, J.W. Crawford. You know there is a good chance that Magnolia might go with Sam, if you do not put a n experienced and knowledgeable person on the account. This is your largest account and you do not want to lose it. In the past both the company and Sam have made a lot of money from various deals with Magnolia.

Your know from Sam’s client notes and from your previous visits to Magnolia, that J.W. belongs to the ‘old school’ and is most comfortable to do business with “one of the boys”. Last year when Sam was visiting Magnolia, he went on a hunting trip with J.W. The final night of the trip J.W. surprised them with a “special treat”. He invited a stripper to entertain them after a long dinner and plenty of drinks. On another occasion when Sam was there with Elaine Jones, who is a senior person at your firm, J.W. paid little attention to what she had to say and kept referring to her as “honey”. ON her way out of his office, J.W. gave her a pat on her behind.

Elaine is really the only person who knows J.W.’s business and has the expertise an seniority to takes Sam’s place. Ordinarily there would be no question of her taking over the account, because of her experience and her track record. Elaine is not known to turn down lucrative deals. However, knowing what you know about J.W., you wonder if she’s the person for the job.

Answer the questions below in short, one paragraph or bullet point style answers.

Questions:

1. What is the ethical dilemma or what are the conflicting values at stake?

2. Who are the -immediate and indirect- stakeholders?

3. Analyze the ethical dilemma from the perspective of each of the following decision-making approaches:

​​a. Consequentialist

b. Deontological

c. Virtue Ethics

4. What would you do? Justify your answer based on your analysis in Question 2.

Answer 1

Answer :

1. The ethical dilemma in this case is that if Elaine takes over Sam’s place, then will she follow ethical principles (preference) or support J.W in all of his causes (prejudice). Elaine has already been with Sam to meet J.W. However, during the occasion when J.W gave her a pat on her behind, she did not say anything which indicates that she might accept to J.W’s desires eventually resulting in decisions that might not be good for the company.

2.   The immediate stakeholders are: Sam, Elaine and J.W. The indirect    stakeholders are management (organization), employees, suppliers and the customers.

3. Consequentialist- In this approach, I will see what will be the outcomes or consequences if I hand over Magnolia's account to Elaine and decide about the right action based on those consequences. The account is the largest for the company and hence it will be beneficial to the company. Knowing about the activities of J.W. it may or may not be a wise step for Elaine.

Deontological- In this approach, the rightfulness of the action is judged to analyse the ethics of the decision. In this case, appointing the next best employee for taking up Magnolia's account after Sam is required. For that case, Elaine is the most eligible choice based on seniority and experience and hence appointing her will be the right action.

Virtue ethics- According to this approach, I will do what I understand will be virtually or morally right and hence will not appoint Elaine for this post as with the history J.W. has shown in working with the company employees, working with him can harm her physically and morally.

4. I would find a way which can be beneficial to the company as well as Elaine. I would ask Elaine advice if she is comfortable working with J.W. considering his behaviour of the past. And if not then I would find the next best person who can take this place and advise Elaine to train him and make him efficient enough to work for the account being intact in our company and not going to the competitors.