Question

Question on Business Ethics  9th edition by william h shaw

Describe a scenario whereby a good company, with good employees might make near term decisions leading to a major ethical lapse. Pull from the normative theories and best practices discussed in the text to illustrate your example

Answer 1

Taking the example of a good company like Vodafone.

Vodafone is one of the leading telecom operators across the world. It is a company known for its ethical practices, top performing employees and is a role model for many companies across industries.

In India the telecom industry is going through lot of turmoil with the launch of JIO. Prices have come down and all operators are bleeding.

Vodafone has taken the decision of downsizing. Employees who have performed all through these years, who have put in their blood and sweat are being asked to leave the company. This is a very short sighted approach because it kills employee morale, reduces productivity, and breeds mistrust.

This is a major ethical lapse since in tough times the company is letting go of people who have brought the company to where it is today. Employee costs could have been reduced through many other measures. Ethically this was not the right thing to do. And at all if it had to let go of employees it should have given sufficient parting benefits.