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ORGAZINATIONAL DESIGN AND ANALYSIS

MBA WEEKEND – 6TOPIC

Ethical Stance’s at The Scaffold Plank Incident

(Case Study Questions)

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GROUP MEMBERS

MALIK MUHAMMAD SHOAIB

JUNAID AHMED KHAN

SIDRAH ASHRAF

ALI KAMRAN

ETHICS & ITS IMPORTANTS

Ethics is moral principles or beliefs about what is right or wrong.

Ethics are important for business because it is the reason of:

Making strong relationship of customer with the organization.

Increase market reputation of the company.

Legal implication are reduced by practicing business ethics.

Correct practice of business ethics causes increase employee motivation towards company.

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OVERVIEW OF THE COMPANY

White’s Lumber a North Country institution founded in 1892 by George R. White. It is a family owned and operated business.

In 1912 John M. White structured the sawmill that would then be passed down to his son Clarence A. White.

Company is doing the business of lumber.

Raymond(Clarence’s son)furthered the expansion and built on a dry kiln yard to handle high grade lumber.

Company follows one step further to make customer dream into the reality.

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Overview of the Case StudyCase study deals with the ethical and social obligation of selling scaffold plank to its customer, to quality lumber.

Being a responsible employee of the company, Bob Hopkins have some reservation in finalizing the deal of scaffold plank with the customer.

Bob had detailed discussion with Stan Parish as well as his owner John White, who both are constantly trying to convince Bob to proceed with deal.

Ultimately the deal was committed by owner leaving Bob with unanswered questions of ethical practice in the deal.

The basic idea is to satisfy all stakeholders: give customers a product or service of expected quality as promised, compensate and give growth opportunities to employees, and provide expected returns to shareholders.

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Question & Answer of the Case Study

Q1. Who are the primary stakeholders?

Stakeholders are parties that have an interest, or stake, in the operation of a business. The main stakeholders are customers, employees, and shareholders.

Primary stakeholders of the white lumber are following:-

a. John White - Owner/Shareholder

b. Bob Hopkins - Employee

c. Stan Parish - Customer

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Question & Answer of the Case Study

Q2. What are the possible alternatives?

The firm should not conduct a fraudulent sale. Nor should the firm endorse illegal use of its products.

There are following alternatives which they can use:- Meeting with client before getting order. Customer should be aware about the pros &

cons of the deal. CEO must inform the legal authority about

constraints.

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Question & Answer of the Case StudyQ3. What are the practical constraints?

White Lumber Company must be competitive and savvy to retain its business relationships and clients. Yet it must balance its ethical and fiscal responsibilities to manage the following risks. Reputation Risk: damaged reputation due to an accident, bad publicityLegal Risk: regulatory and civil damages if liable

for injuries or fraudClient Risk: clients may be investigated and fined

for illegal practicesOperational Risk: loss of future sales, business deals and relationships. The firm looses revenue and profits. Unable to conduct business effectively.

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Question & Answer of the Case Study

Q4. Should Bob Hopkins be liable for his action when he is not the owner?

As Mr. Bob Hopkins is a loyal employee of the company and his opinion on the said issue were justified, but being employee he is not liable to emphasize his boss on any sort of selling decision.

As an owner of company Mr. John White can make decision.

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CONCLUSION

Ethics are important not only in business but in all aspects of life because it is an essential part of the foundation on which of a civilized society is build. A business or society that lacks ethical principles is bound to fail sooner or later.

THANK YOU

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