Essay Sample on Ethical Issues in Business Environments

Introduction

Domestic and global business environments harbor varied ethical flex with regards to matters of ethics and business principles inculcated within. Assuredly, any conglomerate whatsoever is in effect influenced by key ethical issues both within and without an enterprise. A vivid description of a firm's key stakeholders and employees in either fostering or diminishing ethics is vital in ensuring full subscription to the international standards. Failure to adhere to such principles would always attract severe legal implications. However, a remedy to salvage the situation also is of utmost importance. Key ethical concepts like utilitarian principle, cultural relativism and eternal returns all based on facts, values, and reasoning all play significant roles in the transnational world (Brusseau, 2011).

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Ethical Issues Related To the Kobe Steel Scandal

Kobe Steel Company for more than a decade had been involved in malpractices that compromised the quality of their products. Firstly, Kobe Steel Company with the knowledge of key backers including the Chief Executive Officer was involved in falsifying quality data. Tampering of quality data documents was rampant as employees deliberately altered inspection certificates and kept records of false results. Moreover, the sale of these substandard metal was accomplished with the full knowledge of stakeholders. Findings in the company revealed that 200 companies were affected by low-quality products spanning from aluminium to copper products. This was a great deal of jeopardy on the reputation and economy of Japan especially in the business realms with stiff completion from other steel producers including China (Cheong, 2017).

Stakeholders Involved in the Kobe Steel Scandal

Kobe Steel Company scandal encircles stakeholders including employees and Chief Executive Officers. The persons are either directly or by a cast of influence played an imperative role in castigating production of unsatisfactory steel products. The employees involved in the production chain were the genesis of the scandal as a result of negligence in the course of duty. Deliberate alteration of Copper and Aluminum inspection certificates and keeping such false results documents was a clear show of their active participation in the whole saga. The Chief Executive Officers, on the other hand, was very much aware of these malpractices in the company but failed to act accordingly. These stakeholders were cognizant of the sales for a whole decade without raising the alarm.

Potential Implications of Kobe Steel's Actions On Each Stakeholder Or Stakeholder Group

Actions must be accompanied by corollaries in obedience to the law of action and reaction. The employees' misbehaviours of data falsification could lead to being fired instantly without many considerations. Breach of contract rules and regulations of delivering quality products can hint to imprisonment for both the employees and management including the Chief Executive Officers. At times, salaries and wages for the whole period of misconduct can be withheld as reparation of the employees' mistakes as confirmed by Crane & Matten (2016). Furthermore, more stern actions can action can be met on the criminals including lifetime barn from work participation in any other company. Miserably, the culprits could also be thrown behind bars after a fair court trial that affirms their guilty state.

Cooperate Culture and Kobe Steel Misconduct

Negligence within Kobe Steel Company contributed to the production of substandard steel products. Employees' deliberate misconduct concerning quality inspection and keeping false records created a civilisation of negligence. The same spirit thrived within the company for a whole decade with new recruits getting indoctrinated into the same misconduct. Ridiculous managerial misconduct, especially with the Chief Executive Officers, fronted a spirit of laxity amongst the employees. Little inspection and lack of concern could also be valid especially with the sales of substandard steel products with the full knowledge of the management.

Utilitarian View Kobe Steel Misconduct

A utilitarian, however, would have a divergent view concerning Kobe Steel misconduct with focus on the fundamental goods amassed after the escapade. Though involving crude means to strike a high measure of profit, the ultimate goal lies with the final outcome. Ultimately, income would be desirable although at the expense of compromise to quality and standards of steel products (Brusseau, 2011). Utilitarianism advocates for everybody's happiness in tandem with future outcomes. When stakeholders and all employees are satisfied in whatsoever manner, the utilitarianism justifies production of imperfect goods. Perhaps to fulfil specific goals, all possible routes may be accepted.

Aristotle View on Kobe Steel Misconduct

Aristotle, a Greece philosopher, gives a stringent view on job satisfaction glued on values and happiness. Although doing the right thing is part parcel of goodness, achieving a good life remains to the topmost goal. Kobe Steel compromised on steel standards but achieved happiness which seems a good deal. A proper understanding of company goals, mission, vision, and key values propels an environment of goodness and ultimately achieving the desired targets. According to Aristotle (Brusseau, 2011). Kobe Steel Company overlooked its values and standards and therefore produced low-quality products though at a good profit. This was a muddle on the company's reputation and to the economy of Japan as a nation.

CEO's Remedy Based on Kant's Ethical Theory

Immanuel Kant's compilation of ethical ideas could seem a remedy to Kobe Steel Company when prudently applied (Brusseau, 2011). Theoretical ideas when defectively applied becomes a menace instead of a solution. Therefore, practical wisdom is only applicable in scenarios as such of Kobe Steel misconduct. Kant implores Chief Executive Officers to deeply breathe and respond to the situation with utmost thoughtfulness. Probably as the topmost manager, it is inevitable to learn and wisely apply basic guidelines on duties and responsibilities. As a way to be able to foresee properly while others follow. Giving clear guidance at times is profitable since most employees are rational actors. In all these, the CEO should be sure to indoctrinate a spirit of fairness, courage, temperance, sincerity, and civility in dealing with the affected parties. This includes stern action on those who are found guilty of negligence and reward to those of outstanding demeanour all across the management structure.

Theoretical ideas when defectively applied becomes a menace instead of a solution. Therefore, practical wisdom is only applicable in scenarios as such of Kobe Steel misconduct. Business ethics must always be given first priority whatever the circumstances. Any dereliction would always catch the fancy of austere consequences. Any losses have to be compensated to redeem lost glory. Rejuvenation requires sacrifice and sometimes very exorbitant.

References

Brusseau, J. (2011). The Business Ethics Workshop, v. 1.0. Flat World Knowledge, Washington, DC. Retrieved from https://resources.saylor.org/wwwresources/archived/site/textbooks/Principles%20of%20Marketing.pdf

Cheong, S. (2017, October 30). The Kobe Steel scandal flows through the entire supply chain. Insight Factset. Retrieved from

https://insight.factset.com/the-kobe-steel-scandal-flows-through-the-entire-supply-chain

Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalisation. Oxford University Press.