Bus 5115: Business Law, Ethics and Social Responsibility

M.A. Business Administration

University of the People

Dr Dunmore

08 /02/ 2024
Introduction

Business ethics refers to the moral standards, laws, and ideals that govern how

businesses and individuals conduct themselves in the business world. Establishing a

code of conduct that guides employee behavior and promotes trust among customers

and companies is essential and goes beyond simply meeting regulatory obligations

(Twin, 2024).

This situation presents a dilemma for Tony, who has to make a choice that has moral,

legitimate, and proficient suggestions. On one hand, he must ensure that the product

meets all regulatory requirements and upholds the integrity of his work as a test

engineer. On the other hand, he is pressured by the phone company's president, who

encourages him to endorse the item despite its disappointment in meeting the

administrative necessities for an interferometer with commotion transmittance.

1. Identify the ethical and legal issues in the two decision scenarios in the

case. Create a 2 X 3 table to state the two possible courses of action Tony

can take and the positive and negative implications of each, viewed

through the ethical and legal framework.

What is a legal issue?

Legal issues are situations or problems that have legal implications and may result in

a lawsuit. In the business world, legal issues arise whenever a company must adhere

to laws and regulations. The business world faces various legal issues related to

employees and recruitment (Bohrer, 2022).

What are ethical issues in business?

Ethical issues in business refer to any moral challenges a company may encounter.

When a company takes a strong stance against common ethical problems, such as

discrimination, it can foster a more inclusive and stable workplace for all employees.

This could also have a positive impact on the business world as a whole.

It is essential to differentiate between ethical and legal issues, as companies of all

sizes may face both. While legal issues are tied to laws and regulations, ethical issues

revolve around values and personal beliefs. However, legal issues often lead to ethical

dilemmas and should be addressed promptly to avoid costly and lengthy disputes.

Action Positive implication Negative implication

 The company holds the 

Infringement of astuteness
Approve contract and potential wage and moral
the increase. (Ethical, Legal) guidelines(Ethical).
product  Occupations are secured for  Potential lawful
despite agents of the phone consequences for Tony
failing company.(Ethical) and the company(Legal).
the test  Hurt to customers if the
item doesn't meet security
benchmarks(Ethical,
Legal)
Refuse  Respecting moral principles  It will be an unfortunate
to and honesty. (Ethical) contract and lost revenue.
approve  Adhering to consumer  Reasonable disasters at
the protection laws and work for employees of
product regulations.(Legal) phone companies.
based  Tense relationships with
on test the president and Tony's
results possible employment
outcomes.
Depending on the test results, Tony is encouraged to choose the best course of action,

which is to reject the item in light of moral and legal concerns, even though there

could be immediate issues. Or he can collaborate with the phone provider to find

swap arrangements for the impedance problem which can lead to a solution that

satisfies both business and ethical requirements.

 2. Discuss the importance of ethical and legal behavior in the context

of Tony’s ethical and legal dilemmas.

The ethical measures and standards that coordinate corporate conduct are called

business ethics. It incorporates everything about how businesses carry on, counting

decision-making and corporate social obligation. Research has consistently shown

that companies with solid moral standards perform way better than those without

since they have a higher partner back, staff maintenance rates, and client devotion

(Manelkar,2023).

Tony finds himself in a challenging moral and legal situation, and the significance of

ethical and lawful behavior cannot be exaggerated in this setting.

1- Ethical Importance

•Integrity: Integrity in trade makes strides in a company's notoriety, which can offer

assistance to draw in and keep clients, rouse devotion among staff individuals, and

provide more to speculators (Farnham,2023). Adulterating information harms Tony's

company's notoriety and the industry's immense capacity to certify things with

exactness. It routs the objective of quality control testing.

•Consumer Protection: The law about consumer protection shields consumers

against deceptive business activities that hurt consumers in the marketplace.

Legislation and rules are involved in stopping companies from engaging in unfair,

dishonest, or fraudulent sales and other related activities(Liberto,2023). Tony's

company's primary goal is to test products to satisfy regulatory standards and shield

consumers from dangerous or subpar goods. Suppose Tony would unethically

approve any product that does not meet these standards. This would breach ethical

responsibility.
•Professionalism: Work professionalism reflects genuineness, grit, obligation, and

ethical conduct. It is the capacity to act freely and maintain beneficial work hones

(prioritize, organize, and oversee workload; be on time). Tony's professional and

business reputations will be in jeopardy if he accepts the manager of the cellular

company's offer to return the phones even if the tests are unsuccessful.

2- Legal Importance

 Compliance and Corporate Liability: Within business ethics, compliance

typically refers to a business's or an individual's adherence to pertinent laws

and regulations, or in other words, abiding by the rules established by the

government. Focusing on compliance also means that personnel should

comply with the organization's internal norms in a slightly broader

sense(MacDonald,2018). If he accepts the offer, legal repercussions for Tony

and his business might include penalties, litigation, and reputational harm.

3. State the two choices Tony can make. Identify and explain the ethically

and legally sound choice. Which ethical lens is employed to perceive the

dimensions of Tony’s choice?

Tony has two options available to him:

1. Approve the product despite the test failure

o Positive Implications:

-The company will hold the expansive contract, with a potential income increment.

-Employment is secured for representatives of the phone company.

 o Negative Implications:

-Infringement of judgment and moral measures.

-Potential lawful results for Tony and the company.

-Hurt to shoppers in case the item doesn't meet security measures.

2. Refuse to certify the product based on the findings of the tests:

o Positive Implications:

-They will maintain integrity and moral principles during the testing procedure.

-Further, they will guarantee consumer protection and abide by legal requirements.

o Negative Implications:

-Forfeiture of the big contract and possible earnings.

-Potential job losses for phone company staff members.

-Tense relationships with the president and Tony's possible loss of employment.

Tony should ask for advice on the appropriate course of action from coworkers,

managers, or the company's ethical committee. This guarantees a group approach to

moral judgment. It is also crucial to look into alternate moral and commercial

concerns options. This could entail carefully collaborating with the phone provider to

locate and resolve the interference problem without jeopardizing the integrity of the

data.
Ethically and Legally Sound Choice:
Tony should decline to approve the product based on test results; this is the morally

and legally correct decision. This choice aligns with moral precepts like

accountability, professionalism, and integrity. It guarantees adherence to rules and

puts consumer safety ahead of immediate commercial advantage.

Ethical Lens Employed:

Tony's choice was viewed through an ethical lens focused on duty-based ethics or

upholding one's moral commitments and duties. Tony is required to maintain the

integrity of the testing procedure in this instance, adhere to legal requirements, and

put customer safety first. Refusing to authorize a product that does not stick to

regulations shows dedication to these responsibilities despite the temptations.

A consequentialist viewpoint may also be considered in which the possible harm to

customers and the long-term harm to the business's reputation surpass the immediate

financial rewards. Tony puts the long-term viability of the industry and the general

sound effects on society first by declining to approve the product.

In conclusion, Tony's predicament highlights the necessity of upholding strict norms

of behavior in the testing and certification procedures due to its ethical and legal

implications. People and organizations' long-term profitability and credibility in the

quality assurance industry largely depend on upholding integrity, guaranteeing

consumer protection, and adhering to regulatory requirements.

Reference:

Bohrer L.(2022, September 26). 9 common legal issues in business and how to

prevent them

Reference: https://www.lano.io/blog/9-common-legal-issues-in-business-and-how-to-

prevent-them

Farnham k,(2023,June 3). Business integrity: What does it mean, and why does it

matter?

Retrieved from: https://www.diligent.com/resources/blog/business-integrity

Liberto D,(2023,August 16). What Are Consumer Protection Laws?

Retrieved from: https://www.investopedia.com/articles/pf/10/know-your-consumer-

protection-laws.asp

Manelkar S,(2023,March 10). The Importance of Business Ethics: Why Ethical

Conduct is Critical to Success.Linked in

Retrieved from: https://www.linkedin.com/pulse/importance-business-ethics-why-

ethical-conduct-success-manelkar/

MacDonald, ( 2018, April 30). The Concise Encyclopedia of Business Ethics.

https://conciseencyclopedia.org/entries/compliance/

Twin A, (2024, January 25). What Is Business Ethics? Definition, Principles, and

Importance

Reference: https://www.investopedia.com/terms/b/business-ethics.asp