Wednesday, November 20, 2019

Business ethics Essay Example | Topics and Well Written Essays - 1500 words

Business ethics - Essay Example Key Issues in the Case Evaluating on Rational Grounds The issue highlighted in the case ignites several other issues, all which are significant to consider in the business environment. Richard Smart, who is currently serving as the CEO of the company has taken the company to a new height. Because of his contributions in company’s growth and success, he is admired by the board of directors and stakeholders of the company. However, the basis on which he was appointed on the seat of CEO was nullified, when the truth was unleashed about false information of his degree from the Harvard University. This explains that he was actually not the deserving applicant, but was selected by misguiding the company about his true qualifications. Another factor that can be assumed on this basis that there might be other lies he had told to the board members to get the position. Therefore, the entire image of Richard Smart is now in serious doubts. The standing dilemma is that the company is doin g good business in his supervision and expelling him would affect the market position of the company. However, the decision on this issue is not limited to the direct success or collapse of the company alone, and there are other factors too that are crucial in ensuring smooth work flow in the company. Among these factors, the concern and issues from stakeholders are of significance importance. Issues that can arise from employees, customers and stockholders have to be evaluated in the decision process. The truth, that the CEO has shown false education document, cannot be kept hidden for long, and would raise doubts in stack holders about the management system of the company when they will learn about this truth (Weiss, 2009). Presenting false documents in the business world is considered an ethical crime and there are definite set of rules for such criminals. When investors will come to know that they have been dealing with a fraud CEO or ‘criminal’ to be precise, their relations and motivation in investing in the company would certainly be lower down (Weiss, 2009). This can directly affect the productivity and market standing of the company, which is against the interest of every individual associated with the company. Moreover, when this issue will come in the knowledge of company’s employees, their trust and respect level for company’s leadership would certainly be decreased. On the other side, replacing the current CEO with a new one will also result in the same thing, as a black spot on company’s supervision and management will remain in the minds of employees (Weiss, 2009). Another critical element is the pressure exerted by the government or general stock holders. Stock holders would certainly pressurize the board of directors to bury the issue from media and customers. Once the image of the company is damaged in front of their customers, it is very hard to regain that reputation (Weiss, 2009). However, if any of the co mpetitor companies got to know that Super Software has built false reputation in the market with a fraud CEO, it can bring reveal this in a press conference. This might lead the company in paying heavy penalties to the government and losing customer loyalty as well. The worst scenario would be when the government is involved in the matter as this could bring the toughest time for the company in defending the reason for hiding the truth. The only way to avoid this happening is to think of a

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