Question

1. Ethical scandals: choose one topic from the following and analyze the case study based on the questions given

• Former Mayor of Detroit (source: media)
• Well’s Fargo (source: media)
• Making Apple’s IPod (page 132)
• VW Emission Scandal (source: media)

The case study should address the following questions;

1. What ethical scandals were committed?
2. Why the scandals committed and what were the justifications, if any, was given?
3. Is there anything in the environment, culture, personalities etc that might have contributed to such unethical behavior?
4. How was the scandal corrected?
5. Referring to the lesson on ‘How Managers can make Ethical Decisions,’ what lessons can you learn from this scandal?

Answer 1

1. What ethical scandals were committed? - Hongfujin Precision Industry has provided poor working conditions and sub-standard dormitories to their workers. Also, they are paid minimal and working hours are more than 60 hrs per week. Also, when this has been reported by the two chinese journalists - Wang You and Weng Bao, the company filed a defamation case against the two.
2. Why the scandals committed and what were the justifications, if any, was given? - Hongfujin Precision Industry committed the scandal to cover up their activities of unethical treatment to their workers. They wanted to ensure that they have control over the labor and are not humiliated in international industry.
3. Is there anything in the environment, culture, personalities etc that might have contributed to such unethical behavior? - The labor availability is plenty in China, therefore labor is not treated with respect and is not valued. As a result the industrialists often exploit their workers. Also, the Chinese courts display a tendency to favor rich and strong businessmen. These may be the contributing factors for such unethical behavior.
4. How was the scandal corrected? - By involving Apple the multinational company by the Paris journalists sending letter concerning the matter to Apple's then CEO, late Steve Jobs who ensured the scandal was corrected and that such problem will not reoccur.
5. Referring to the lesson on ‘How Managers can make Ethical Decisions,’ what lessons can you learn from this scandal? - We learn that, it is very important for any businessman to maintain his/her company within the ethical guidelines as per international standards. Also, it is better to amicably resolve matters than take false steps. Courts must be unbiased and just. Corrective actions must be taken instantly as soon as one learns of any such mistake.