Business Ethics and Decision Making

Business ethics is more than just understanding between right and wrong. It also involves taking responsibility for an ethical course of action in business operations. Companies committed to values management and corporate citizenship emphasize moral values for their organization and ensure that behavior is aligned with those values. Yet, values management is not always a clear-cut case, and sometimes values may collide. Using an ethical decision-making paradigm helps business owners and managers apply values more consistently.

An Ethical Fork in the Road

Consider the dilemma of the hypothetical company in the following case study. It involves resolving clashing values during business planning and operations. Use the ethical decision-making paradigm featured in Figure 2.1 to arrive at a solution.

Dorian Industries employs 500 people at its headquarters in Metropolis. Dorian has an active values management program and has been committed to "producing high-quality products, while being an upstanding corporate citizen, an employee-focused workplace, and a first-class neighbor." After complaints by employees about commuting conditions, the company hired a consultant to study how to alleviate the traffic jams near the companys headquarters that were created by Dorian employees during rush hours. Additionally, several residents in the adjoining neighborhood complained that delivery trucks and others bound for Dorian headquarters were speeding through residential streets to avoid the traffic congestion.

Although the consultants offered short-term solutions such as staggered employee shifts, ultimately, the company faced three major options for a long-term solution. All long-term solution options cost approximately the same. Option 1 included Dorian funding the planning and construction of a public "flyway" road that would connect the residential areas where employees lived directly to Dorian's office and plant complex. This would also include the building of additional parking lots closer to the complex. Employees supported this option because of its convenience of driving a car while cutting the commute time in half. A local neighborhood association opposed this option because of the impact construction would have the aesthetics of the neighborhood and a concern over increased smog. Option 2 was a "greener" option to provide employees with: 1) 100 percent reimbursement for any mass-transit fares, 2) low-cost shuttle services, and 3) carpooling subsidies. This option also included a wellness plan for employees and the building of pathways to provide opportunities to walk or bike to work. Employee groups complained about this plan because the inconvenience of mass transit and carpooling was still a concern. Neighbors supported this option as environmentally sound and preserving the quality of life. Option 3 included a campaign in the form of posters and advertisements to promote good driving etiquette to avoid complaints from the neighbors about reckless drivers. The campaign also encouraged employees to use mass transportation, carpooling, and award free reserved parking. Some neighbors supported this option as environmentally sound and hoped that the campaign will change the employees' values on going green and being considerate. Employees made no comments on this option.

1a. Define Dorian's...

Define Dorian's dilemma.

Multiple Choice

A The company's commitment to employees is at odds with its commitment to corporate citizenship.

B The drivers bound to Dorian headquarters were reckless.

C Neighbors have complained about excess traffic.