MGT610 Business Ethics Assignment 1 Solution Fall 2014

Mr. Mushtaq was recently promoted to the position of District Manager of Computer Operations for a large company. Mr. Nazir, Mr. Mushtaq’s supervisor, calls him to his office. He has just been informed that the CEO has received an anonymous letter from an employee. This letter states that a recently installed (and very expensive) system does not perform as expected and has not achieved the expected results.
Mr. Mushtaq has been aware that the system’s actual performance is really as described in the anonymous letter. Mr. Mushtaq had reported this performance problem to Mr. Nazir before. Although Mr. Nazir had listened to Mr. Mushtaq, he had been the original supporter of the system and continually provides only positive feedback to the CEO on its performance.
Mr. Nazir tells Mr. Mushtaq that the CEO expects a reply to the letter. He tells Mr. Mushtaq to draft the reply. It should say that the system is performing as projected and that all savings portrayed in the original justification documents are being achieved. He says the documentation provided with his reply should support those statements. `
Mr. Mushtaq is upset by this directive. He feels that upper management is being misinformed in the interest of protecting a questionable decision. He approaches Mr. Nazir with his concern. He says that if he does not provide the reply as requested, he will have serious doubts about his ability to perform the functions of a District Manager for the company. Mr. Mushtaq has worked hard to achieve this position and is very worried about his statement.Question:
1. What should Mr. Mushtaq do? Which alternative would you choose if you were in his position?

I think From now Mr. Mushtaq should first resolve that employee’s issue personally and also issue warning letter to his supervisor for his negligence. Check and balance is an important point which we cant ignore in this case, manager shouldn’t totally rely on his supervisor i think.

2. Which ethical theories (utilitarian, rights, justice) make the most sense to you in this situation?

Business ethics theories include the moral principles or codes a company implements to ensure that all individuals working in the company act with acceptable behavior. Business owners and managers can use an ethics theory they deem most appropriate for use in their operations. A few different business ethics theories exist, such as the utilitarian, rights, justice, common good and virtue approach. These theories can be used on their own or in combination with each other. Each theory includes specific traits or characteristics that focus on specific ethical principles that can help companies correct business issues.

The utilitarian approach focuses on using ethical actions that will promote the most good or value among a society while limiting the amount of harm to as few people as possible. Among the business ethics theories, this is typically seen as the oldest theory, as it was propagated by many philosophers, such as Jeremy Bentham, James Mill, and Mill’s son John Stuart Mill. Businesses can use this theory to ensure the outcome of various situations helps the maximum amount of stakeholders.

A rights ethical approach is based on the belief that all individuals have rights in life and should be treated with respect and dignity. Morals play a large role in this because individuals must personally use ethical behavior in order to achieve the end goal without mistreating people. Business ethics theories often use this approach by not imposing their missions, products, or systems on consumers.

Justice as an ethical approach is where all humans are treated equally through society, regardless of rank, position, class, creed, or race. This is also known as the fairness approach in business ethics theories. If people are not treated fairly — such as one employee receiving higher compensation than another — a justifiable reason must exist, such as higher technical skills or the exclusiveness of a job position.