Question

Assume the role of a senior level executive of a multinational company located in Saudi Arabia. Your organization conducts business in various parts of Asia, Europe, The United States, and Mexico. It has come to your attention that some strategic partners have engaged in practices that are considered unethical. Although such practices may not be considered unlawful, they raise questions regarding integrity and high ethical standards as related to financial activity, safety standards, and treatment of employees.

How would you address the current issues with partnering companies who are engaged in questionable practices? Importantly, how do you protect your organization’s public image when such practices have been called into question? Be very specific and thoroughly explain based on the ethical concepts gained in the course.

Answer 1

Unethical behavior and practices on the part of any person directly associated can plague the company's goodwill. It has the ability to tarnish the company's image and damage its credibility, leading to the business losing its customers and consequently shutting down. Engaging in fair and ethical practices on a personal and an organizational level is instrumental to the successful running of the business.

Being a senior level executive of the MNC, it is m responsibility to ensure the conduction of ethical business operations. If there are any strategic partners who have engaged in practices that are considered unethical, following steps must be taken at the earliest:

• Sending out warning letters to the strategic partners involved should be the first step. This is necessary to let them know that the company is aware of the unethical business practices and id continued the company would terminate the association.
• The second step is to develop a robust mechanism to ensure absence of such malpractices within the company. This can be achieved by creating a code of conduct for those associated with the company - employees and strategic partners alike. A code of conduct signifies the values that are important for the business and it must be written in a clear and concise manner.
• Developing a trustworthy protocol for reporting the unethical malpractices is one of the important step in tackling the issue.
• Empower the employees and partners by conducting ethical based training and conferences. Incentives might also be included like a year-end bonus, paid leaves to further exhibit the relevance of the code of conduct.
• Making sure all the new employees and strategic partners are aware of the code of conduct and the consequences in case of violation through an orientation program.

Company's reputation is a matter of trust and any attrition to it is bound to shake the foundations. One of the most important steps to protect the organization's public image when such practices have been called into question is to terminate the company's association with the involved partners. This will send out a strong message to both the partners and the target customers about the values and code of conduct entertained by the organization. Failing to do so, the company's corporate reputation (which is often viewed as a competitor advantage) might be tarnished. The organization must address the problem as early as possible, grab the opportunity to empathize with its customers, answer the questions of the media honestly and plan the steps to avoid such malpractices in the future.