Question

Assume that you serve as a senior human resource executive for a large multinational firm with individual plants in Malaysia, Thailand, and Pakistan and with suppliers in Asia. A new CEO has been hired who is an advocate for rights of foreign workers, staking his personal reputation on the ethical and humane treatment of the company’s and suppliers’ employees.

As the senior human resource executive, you conducted an inspection of international operations and became concerned with less positive treatment of foreign workers in one of the company’s plants and in a supplier’s factory. You communicated these concerns to the CEO, who asked that you delay taking any action until after an upcoming shareholders’ meeting, to avoid a possible stock price drop and negative impact on senior management bonuses (including your bonus).

Questions (List question and answer.)

1. What are the ethical issues in this situation?

2. What are the arguments for and against following your CEO’s suggested approach?

For:

Against:

3. What do you think most managers would do?

4. What would you do?

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Answer 1

1.What are ethical issue in this situations-

Ans- providing priority to self benefit , or priority to institutional benefit, or priority to laws & governance.

2.Whats are argument for and against CEOs suggested approach

For- To avoid short term loss CEO advice to delay any action against the supplier. This loss directly affect to share investor interest & which directly affect to remuneration & bonus of both CEO & senior staff.

Against- To avoid long term loss CEO must steak to law and governance, as if after meeting it get reveal CEO delay disciplinary action which is against the existing law then it could ham lots to good will of organization. And also result in legal penalty.

3.What do you think most manager would do?

ans - Manager has to shoulder responsibility to govern existing laws. By issuing notice of disciplinary action organization could earn goodwill & transparency in business. And maintaining law and oder may attract more investor.

4- what you do previous next.

Ans- As this was matter of supplier organization, first to identify who is responsible . Second is it possible to alter existing condition which is against law within same date by supplier. Then develop draft identifying scope of international law governing business & local laws governing the foreign workers. If local laws fulfill the requirements then disciplinary action may delayed. And Its violation of local law in that case disciplinary action must be propose. As international law are guiding principal. And according to local situation local government has to implement according to natural availability of resources. As this was matter of one plant but rest of location conditions found to be normal. And As CEO might gone through all this matter hence he ask to delay disciplinary actions and not intending to focus on bonus of both.