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BUSINESS ETHICS CASE STUDY 1: A STORY OF A YOUNG GRADUATE Fadili, a young graduate from a local university had been hired as an independent

BUSINESS ETHICS

CASE STUDY 1: A STORY OF A YOUNG GRADUATE

Fadili, a young graduate from a local university had been hired as an independent contract engineer for a division that needed a short term structural analysis confirmation. The division needed an independent confirmation to obtain financial support from the headquarters in order to continue a project. After performing his duty, Fadili discovered that there were some structural deficiencies in the project proposed by the division. Fadili reported the problem to Anum, the headquarters' project controller. She realized that no confirmation would be given because the project did not meet the company's standards.

Encik Aman, the project manager of the division was very upset when he heard the news. He was so confident that the project would generate high profit for the organization. He called Anum, who was also his niece, to discuss the matter. He asked Anum to revise and change some of the information reported by Fadili. He believed that Fadili's report was wrong, not only due to his lack of experience but also due to the fact that Fadili did not really know the organization as well as he did. He had been with the organization for almost 20 years.

Anum was in a great dilemma. She knew that her uncle had never made a wrong decision before. He had always wanted the best for the organization and had always put the organization's interest above his own.

Required:

1.Comment on Encik Aman's suggestion to Anum

2.What are the alternatives available in order for Anum to solve the matter

3.Are they any relevant ethical theories that you can relate to the case?

CASE STUDY 2: PADDING THE EXPENSE REPORT

Mamat is a marketing executive in AXA Bhd. He has been working with the company about a year. The job required Mamat to travel several days in a month. Since he is not married Mamat does not mind the travel. He enjoys the variety and the change of working environment. Furthermore, the company reimburses him for his travel expenses.On his recent out of town trip, he was accompanied by Hassan, his supervisor and friend. While discussing the reimbursement for the trip, Hassan told him to increase the amount of his cab fares since the driver only stamped the receipt letting them fill out the amount themselves. As Mamat hesitated, Hassan told him "I've been with the company for more than six years, I should know what's okay to do". As Mamat was filling out his claim form, he knew id he did pad the cab fares, his total would conflict with Hassan's.

Required:

1.Identify the stakeholders in the above case and discuss the ethical issue.

2.What courses of action are open to Mamat? What course would you recommend he take? Why?

3.Should Mamat inform the top management about Hassan and destroy their relationship as friend and supervisor by reporting? Explain

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