Case 2

Group No.
5
Case 2- Ethics VS Profit
I-
Background of the Study

A large American Company in a highly competitive industry. To meet the
competition and achieve profit goals, each manager of decentralized center is
measured on the basis of profit contribution, market penetration and return on
investment. Failure to meet the objectives established by corporate
management for these measures is not accepted and usually results in
demotion or dismissal of a center manager. The company revealed that they
felt pressured to compromise their personal ethical standards to achieve the
corporate objectives. Also sale personnel were encouraged to use
questionable sale tactics to obtain orders, including offering gifts and other
incentives to purchase agents. He concludes that the company should do
something about this problem.
II-
Identification of the Problem

Actual State
Desired State
The employees are

having conflict to
compromise their
ethical standards
result in unethical.
Protect the
information or plan
confidentiality of
manner.
The company follow the policies of the organization on the conduct in case of the
large American Company they decided change the organization of the setting a high
standard to achieve the objectives.
Pressure to meet
achieve profit
goals
Failure the
comply of ethical
standard
Unethical and
conduct of the
employees
Avoid Conflict
with the
Company
High standard
being competitive
III-
IV-
Formulation of the Objectives
To be able to know the ethical standards in an organization and its
importance.
To be able to identify the problems that affects the succession of the
company.
To be able to know develop the products more efficient and effective.
Alternative Courses of Actions to Address the Problems
Achievable
1. Improve the ethical standard.
2. Good relation of the employees
3. Application of Business Ethics.
V-
Recommendation
Effectivity
Timely
Manner
2
1
A business or company define its code of ethics on how it would conduct its
business. In many situations, this decision results in more profit and greater
market share because people value a company that does not only do the right
thing, but also cares for all stakeholders.
The researcher would recommend in business transaction, to use the ethical
standards in achieving the corporate goals. Therefore a company should
ensure that they provide quality and safe products to their customers.
VI-
(1) Point of Agreement

The company aiming to be highly competitive in setting effective strategies in
achieving the company goals or the corporate objectives.
VII-
(1) Point of Disagreement
The employee should be able to accept the fact that sometimes in achieving target
goals will have failures in order to become successful.
VII-
Guided Questions
1. What are the ethical problems mentioned in this particular case and what are the
probable causes of these problems?
- The management obviously focusing about the profit of the company in terms
of how the company would be able to return on its investment, since the company is
entering in highly combative industry so therefore the management is forcing the
managers to do everything they could to meet and achieve what is favorable with the
company even it will crushed their own personal ethical standard. The problem
simply shows how the manager and seller sometimes do blind obedience for the
sake of the company and simply not to be fired. The cause of this problem is that the
company is focused on making money rather than focusing on making value.
2. I sit alright to do something illegal or unethical to maintain the companys image

and profitability.
- The company should always think about their corporate responsibility and it will
always reflect on the image of the company. If the company or the business is taking
care of its clients and prospective clients by delivering good products or service and
developing excellent content, they will like the organization. Once this happens they
will happily take out the check books when you have something to offer them. The
company should focus on giving to receive much more in the end.
3. If you are the CEO of the company, what would you do and why?
- Its easy to get in trap of constantly focusing on how we can make money with
our business. If I am the CEO of the company, I will not only focus on the money but
to make sure how I am going to keep my clients and to find ways how I am going to
keep them patronizing the service and product of the company. As a CEO, I should
think about also my employees and to respect their own personal ethical standards.
XI-
References
Ethical Business vs Maximizing Profits | John White, MBA | LinkedIn
https://www.linkedin.com/pulse/20141006191205-68335342-ethicalbusiness-vs-maximizing-profits
Managing for Organizational Integrity - Harvard Business Review
https://hbr.org/1994/03/managing-for-organizational-integrity

Case 2

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Case 2

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Group No.

Background of the Study

Identification of the Problem

The employees are

Formulation of the Objectives

To be able to know the ethical standards in an organization and its

Alternative Courses of Actions to Address the Problems

2. Good relation of the employees

3. Application of Business Ethics.

(1) Point of Agreement

(1) Point of Disagreement

2. I sit alright to do something illegal or unethical to maintain the companys image

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