Ethical Values Practiced in the Nutriselect Company - Case Study Example

Case Study; Ethical Issues Name Course Tutor Date Ethical dilemma in the case study Ethics refers to situations and actions that raise moral questions. An ethical dilemma on the other hand, describes complicated circumstances in which there are conflicting views on the moral and ethical aspects of actions and decisions. In the case study for Dan Sestak the new chief executive officer for NutriSelect Company, there are several issues that elicit moral and ethical conflict of principles (Eileen 2010). One of such issues is the issue of compromising quality with the objective of cutting costs and saving the company from eventual collapse. In the case study, it appears that some of the top executives in the company were contented with the policy of compromising quality and food safety. This would have exposed customers to enormous health risk as well as contribute to decline in company sales as customers switch to the competitors. The new CEO was objected to such business policies that sacrifice quality at the expense of losing customers in the long run. The other issue that raises moral and ethical issues is the financial report that was leaked to the media. From a business point of view, it is not acceptable for anyone to leak corporate financial reports to the media. An appropriate channel is usually used in corporate accounting and financial reporting. David, the new CEO for NutriSelect Company felt aggrieved by such actions and all he was asking is a morally responsible financial department. There is no doubt whatsoever that leaking company financial statements to the media have serious ramifications on the company’s business operations. For one, such leaked financial statements may misrepresent the situation on the ground and yet no one is held accountable. Secondly, such information may be used by the competitors for strategic decision making which may affect NutriSelect’s profitability. In addition, leaked financial information may have an effect on organizational trust and confidentiality as well as creating panic and mistrust among the employees. Compare and contrast the utilitarian, libertarian, deontological and virtue ethics perspectives on the dilemma(s) you have identified One of the moral and ethical issues identified in the NutriSelect case study is an attempt by some company executives to save the company from eventual collapse by compromising on the quality of the products. This would be exposing consumers to potential health risk. These moral and ethical issues can be explained under the various ethical perspectives and theories. Application of the Utilitarian perspectives Utilitarianism is a moral and ethical theory that emphasizes on the utility of an action or decision. This theory is based on principles of the greatest good for the majority. Ryder (2004) argues that utility in this case is described in terms of the happiness and pleasure, which are the basic aspirations for humans As such, most of the decisions and actions that humans make are shaped the desire to have more pleasure and greater happiness. In this regard, the utilitarianism theory of moral and ethical behavior is a consequential approach to ethical dilemmas. The issue of unethical business practices to save a company has been in the fore in recent times. However, in consideration of the utilitarian approach to ethical behavior, it is evident that such practices harm the majority of the people who are the customers. There is doubt that saving an organization requires sacrifices. Nevertheless, such sacrifices should not benefit the least number of people while depriving the majority pleasure and happiness. Under the utilitarianism approach, it is morally acceptable to cause harm to a smaller number of people while benefiting the greatest number of people. In this regard, it was morally unacceptable for some company executives to attempt to compromise quality at the expense of risking the health of the consumers. In the second ethical dilemma where financial statements where leaked to the media, it is apparent that the consequences of this action may help the greatest number of people. Most people including shareholders and customers benefits from such reports and hence this action was ethically right. Application of the Libertarian perspectives The libertarian approach emphasizes on focusing to the social welfare of the people, rights and voluntarism. It is an approach that ensures that the right values are followed like caring and free will to make decisions. In the nutirselect case study, the top executives have the right to decide to decide which policies they feel fit the company at the present circumstances. In addition, all the employees and even the top management have the right to make voluntary decision on whether to corporate with the new chef executive officer or not to cooperate with him. The second ethical dilemma is the leakage of corporate financial statements to the media. Under the libertarian approach of ethical considerations, the person who leaked the reports had the moral right to do so. As such, the individual exercised his or her moral right. Application of deontological ethical perspectives The deontological ethics is concerned about the order and the rule of law. Under the deontological ethics, the moral worth of an action or decision is based on its compliance to existing rules (Sterling 2006). In the NutriSelect case study, some members of the managers attempted to compromise the quality of products hence raising ethical questions on how such a decision would impact the rule. It is therefore imperative that the NutriSelect case did not meet the requirements of the rule. The second ethical dilemma is about leaking a financial report to the media. This action is against the rule of the law and therefore the overall position based on the deontological principles is that this action is ethically wrong. Application of virtue ethics perspectives The virtue ethics approach is based on the moral significance of an action or decision. This approach ignores consequentialism and deontology while focusing more on developing good behavioral characteristics in people. On the other hand, the virtues theory or ethical behavior discourages morally unacceptable actions also referred to as vices. In the NutriSelect case, the decision by some officials to employ a strategy that compromises product quality is a pure vice that is against the principles of virtues. In this regard, the officials are morally irresponsible. As pertains to the second ethical dilemma identified in the NutriSelect case study, leaking company’s financial reports is an outright vice based on dishonesty and malice. In this regard, the action is morally and ethically wrong. Identify, explain and justify an ethical perspective that you think will work best in the situation (600 words). Given the ethical and moral dilemma in the NutriSelect Company, the utilitarian approach on moral behavior best explains the situation. Under the utilitarian theory of moral and ethical behavior emphasizes on the ethical value of an action on the consequential impact of such a decision and action. Under the utilitarian approach it is very clear that the value of life is determined by the consequences of an action or decision and not on the action itself. This means that the action that gives utility to the greatest number of people is the most ethically correct action. However, it is also notable that the greatest good is determined in terms of happiness and pleasure. More importantly, utilitarianism accepts causing harm to a small number of people if the net outcome is a benefit to the greatest number of people. In consideration to the utilitarian principles of ethical behavior, the NutriSelect case study can be analyzed successfully. Take for instance the first ethical dilemma that involved some company executives who favored compromising the quality of the company’s products at the expense of the customers. Such an action would mean exposing the consumers of such products to a great health hazard. Evidently, the company has had several ethical issues in the past concerning the safety of its customers with reports indicating that the company recalled some of its products due to contamination with the salmonella bacteria. Based on this fact, and in consideration of the utilitarian approach to business ethics the most important question to ask if the consequences of such an action provided the most happiness and pleasure to the greatest number of the people affected by the decision. In addition it is valuable to establish the intrinsic value of compromising quality as one of the strategies that the company used to cut costs and enhance its survival. On one hand, this action attempted to revive the company, retain employee and benefit the shareholders. But on the other hand, this action has the potential of harming a greater number of consumers as well as collapsing the entire company if such an eventuality happens. In this regard, the ethical dilemma on NtriSelects attempt to compromise quality negates the principles of maximizing the good which is the basic tenet of the utilitarian theory of moral and ethical behavior. While such a decision would have benefited several people within the company, it is notable that such a decision would have culminated into pain and suffering to the greatest number of people including consumers. Similarly, the utilitarian approach to ethics has profound application in the determination of ethical values practiced in the Nutriselect Company. Although the actions would have created profits foe the company, it is vital to note that corporate greed is one of the unethical issues identified in the case study. References Eileen, R. 2010. Over promoted and Over His Head. Harvard Business Review January- February 143-146. Ryder, R. 2004. Painism: A Modern Morality. London: Centaur Press. Sterling, H. 2006. Business as Ethical and Business as Usual. Wadsworth Publishing Co. Read More