Question

Business Ethics Jason Trevor owns a commercial bakery in Georgia that produces a variety of goods sold in grocery stores. Trevor is required by law to perform internal tests on food produced at his plant to check for contamination. On three occasions, the tests of food products containing peanut butter were positive for salmonella contamination. Trevor was not required to report the results to US Food and Drug Administration officials, however, so he did not. Instead, Trevor instructed his employees to simply repeat the tests until the results were negative. Meanwhile, the products that had originally tested positive to salmonella were shipped out to retailers. Five people who ate Trevor’s baked goods that year became seriously ill, and one person died from a salmonella infection. Answer the Following questions: 1- If Trevor had followed the six guidelines for making ethical business decisions, would he still have sold the contaminated goods? Why or why not? . 2- Through the above case, explain the importance of taking ethical decisions in business and what is the return on the institution and the employee when making these decisions based on ethics..

Answer 1

1. The Six Ethical Guidelines for making decisions are.

• Strong ethical leadership - if a business wants to be ethically strong then, the ethical practices should be continued in any situation. A leadership can be said correct only when their is a choice between what is ethically correct and the profit and loss made out of it. If a leader is able to select the path which is ethically correct will have successfully ethical culture.
• Core Value Statement - A ethical business will have a core value statement which will describe its mission. The mission should be communicated to every employee and make sure to follow it. To support the mission a code of conduct will be provided it will act a guideline for the employees.
• Integrity and fairness - an ethical successful business will follow the laws ans regulations for local, state and higher level. The rules and regulations will treat the employees fairly. It also helps in treating the customers, suppliers, vendors and dealers fairly on the baise of price, payment, quality and quantity.
• Respect the employees and customers - Respect and ethics are interdependent with eachother. This will treat the employees equally and will respect their decision and opinion. And ethical business will have respect for its customers by listening to their problems and taking their feedback.
• Loyal relationship with employee and customer - having a loyal relationship with both customer and employee is beneficial. This gives a mutual trust amongst the employee and the customer and will be reliable and dependent in any situation.
• Concern for people and environment - is equally successful business will always have a concern for the people that their serving and the environment where the business is being done. The decisions that are taken will have a effect on the people and environment therefore it is very necessary to take the decisions wisely.

If Trevor would have followed the above given six guidelines for ethical business then he would not have sold the contaminated food to the customers. From the above given point it clearly shows that for being a successful business he needs to keep in mind the people who are helping him doing the business like the employees, suppliers, dealers, vendors and the most important are the customers. If Trevor would have taken the ethical guidelines seriously then he would not have faced such situation.

2. The importance of ethical decision in business is very important because the main role that is played in the business is of the employees working in the business therefore it is very necessary to treat the employees equally and respect the decisions or opinions given by them. Because the employees are the ones who who deals with the customers and their problems so therefore they know what the customer wants and what are the problems they are facing after using the product.

When the decision is based on the business ethics in return the institution or business does not face any kind of legal issues or complaints from the customers, dealers, suppliers or vendors. In the above given case Trevor had been selling contaminated for more than one year which had made few customers ill and one of them died. If this was reported to the US Food and Drug Administration officialst thentoday a Trevor had to shut down the business.

Therefore it is very necessary to follow the business ethical guidelines for running the business successfully without any kind of problem.