Ethics Essay Case Study

Ethics Essay

Short brief – You have to follow the structure below, use the ethical theory (I will attach ppt files
for you), and you must explain why I decide to use this theory. you have to show in the essay
“how a business decision that you make in an organisation can affect many people.”
In the structure below, there is a case study that you have to relate with, and 3 requirements
include 1. Discuss the problem from the viewpoint of the different stakeholders 2. Choose an
ethics theory and cannot afford to explain or utilise more than one ethical theory. 3. required to
relate your final decision to your chosen ethical framework.

( the detail below I upload for you already, the files name is LB5231 ethics essay SP 51 2020)
Assignment 1: Ethics Essay
This assignment is 15% of your grade. This is an Essay with a 1,500 word-count limit.
This essay is designed so that you can explore your own ethics and how you see the business
world in relation to how others see it. Ethical theories help us to understand our view of the
world and it is likely that you will have a preferred theory which you, personally, consider to be
‘right’. For this task, there is no ‘correct’ theoretical framework, however it is important that you
explain how this ethical framework leads you to the decision that you make. Business
decisions have an impact on a number of different stakeholders. This essay is also designed
for you to explore how a business decision that you make in an organisation can affect many
people. It is an important part of this essay for you to show that you understand how
widespread the effect a decision can be.
You are required to write an essay in response to the case below, taking into consideration
the specific discussion points listed after the case study. To obtain a higher grade for your
essay, you should note the following:
Discuss the problem from the viewpoint of the different stakeholders
Choose an ethics theory that appeals to you and use it in your response. You have a
limited word count and you cannot afford to explain or utilise more than one ethical
theory. Discussing the problem using more than one theoretical framework will not
gain you further marks.
You are required to relate your final decision to your chosen ethical framework. Failure
to use the theory in the explanation of your decision will affect your final mark.

Case Situation
You are the Chairman of ABC Ltd, a long established specialist paper-making company. The
company’s next board meeting is due to be held next month. Top of the agenda for the meeting
is the possibility of changing the company’s source of raw materials.
This has come about because for some time now, the company has experienced falling profit
margins. All of the directors had been tasked with identifying ways of reducing the cost base.
One obvious target would be to reduce the level of the workforce but you only want to revert
to this option as a last resort – the work force has been loyal and hard working.
Mr Y, the production director responsible for buying wood pulp, the primary raw material used
in the production of paper, has recommended that the board considers shifting contracts away
from existing Singaporean suppliers in favour of lower cost overseas suppliers. Supporting
this view, the Chief Executive, Mr X, has specifically identified Company XYZ, a company
based in a developing country. It is known that his family have an involvement in this company
and that Mr X personally has a 10% equity stake. Despite the obvious conflict of interest, there
is no doubt that this direct link to the supplier would be of benefit to ABC Ltd if it decided to
take up this option. It would reduce the risks of dealing with a new supplier, particularly one
which is based overseas.
In conversations you have had with some of the other directors, they have expressed concern
that the image of ABC Ltd in the Singapore market will be damaged by withdrawing business
from the domestic suppliers. At present, most of the pulp is purchased from one particular
Singaporean supplier, SG Ltd, with the contract making up over 70% of that supplier’s
business. The expected cost reductions for ABC Ltd are undeniable, but there is a fear that moving the contract will put the existing supplier out of business, and there would be the
associated knock on effects in the local community.
It is also well known that the country from which it is proposed that the pulp be sourced in
future, adopts indiscriminate policies towards deforestation (clearing forest areas), causing
irreparable damage to the eco-system. Its government has consistently argued that the
improvement in the quality of life of its people in rural areas must take priority over natural
resources. Additionally, the political environment is fragile and the possibility of a coup is ever
present.
Another factor is that only just under three years ago ABC Ltd received a regional development
grant for $3,500,000 which was used towards the cost of renewing some of the company’s
outdated equipment. This grant was partly awarded on the basis of retaining jobs in the local
area. The qualifying period will expire in three months time and the local enterprise agency
will not then be able to claw back any of the money – however, you are trying to square the
logic of this with the undoubted damage it would do if ABC Ltd terminated its contract with SG
Ltd.
Having read all the board papers in readiness for the meeting, and having spoken to the other
directors, you are contemplating what recommendations you will make.
What do you do now?
Note: This case study was adapted from ISCA.