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    Case 3 Everyone Does It

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    Asma Khair
    Jim Willis, VP of ISI, faces an ethical dilemma regarding whether to disclose delayed completion of a satellite camera project to a Japanese client. [1] Disclosing the delay could cause the client to cancel negotiations and sign with a competitor, while withholding the information could secure the contract and company finances in the short term but damage reputation and cause legal issues in the long run. [2] The recommendation is for ISI to conceal the delay and use the published launch date instead to secure the contract and company in the short term, which is the most important concern. [3]

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    Case 3 Everyone Does It

    Uploaded by

    Asma Khair
    113 views3 pages
    Jim Willis, VP of ISI, faces an ethical dilemma regarding whether to disclose delayed completion of a satellite camera project to a Japanese client. [1] Disclosing the delay could cause the client to cancel negotiations and sign with a competitor, while withholding the information could secure the contract and company finances in the short term but damage reputation and cause legal issues in the long run. [2] The recommendation is for ISI to conceal the delay and use the published launch date instead to secure the contract and company in the short term, which is the most important concern. [3]

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    Case 3

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    Jim Willis, VP of ISI, faces an ethical dilemma regarding whether to disclose delayed completion of a satellite camera project to a Japanese client. [1] Disclosing the delay could cause the client to cancel negotiations and sign with a competitor, while withholding the information could secure the contract and company finances in the short term but damage reputation and cause legal issues in the long run. [2] The recommendation is for ISI to conceal the delay and use the published launch date instead to secure the contract and company in the short term, which is the most important concern. [3]

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    113 views3 pages

    Case 3 Everyone Does It

    Uploaded by

    Asma Khair
    Jim Willis, VP of ISI, faces an ethical dilemma regarding whether to disclose delayed completion of a satellite camera project to a Japanese client. [1] Disclosing the delay could cause the client to cancel negotiations and sign with a competitor, while withholding the information could secure the contract and company finances in the short term but damage reputation and cause legal issues in the long run. [2] The recommendation is for ISI to conceal the delay and use the published launch date instead to secure the contract and company in the short term, which is the most important concern. [3]

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    of 3

    Case 3

    Everyone Does It

    The ethical problem is caused by various factors. On the one hand, the satellite
    imagery industry is a highly attractive and fast-growing market, so all
    participating companies heavily rely on acquiring and keeping their clients to be
    able to compete. On the other hand, all companies depend on venture capitalists
    who provide the financial means for the companies’ projects. Due to current
    negotiations with a Japanese client, Jim has to decide of whether to act ethically
    correct or rather in favour of the company.
    According to scenario 1, Jim discloses the information about the delayed
    completion date. Consequently, further negotiations with the Japanese would be
    cancelled and the advance contract would be made with a competitive company.
    The second alternative, described as scenario 2, would be to withhold the
    information from the customer. As a major consequence, ISI would probably
    get the contract and the financial future of company would be secured for the
    moment. As possible negative consequences, the company's reputation could be
    damaged and possible contract conditions could result in compensation claims
    of the Japanese company. However, the company is prepared to take this risk
    than to lose the contract to one of ISI’s competitors. In the best case, the
    contract will be signed and the delay will be tolerated

    Recommendation
    It is recommended that ISI should conceal the delay of the launch date and to
    use the published one. By doing so, the company will be secured at the moment,
    which is the most important thing as far as we concerned

    *case questions:
    1. What are sources of the factors which created the ethical dilemma?

    There are several Internal forces include:


     Jim Willis VP Manager, Fred Ballar President
    Prior approval is needed to disclose company information
    The financial stability of the company and its existence.
    2. Is it ever appropriate to withhold negative information from the
    client?

    Ethically, it is not accepted publish misleading information to our clients,


    but in some situation can withhold negative information (keep silent)
    unless the information affect directly our client, but in this case it is a
    must to disclose the full information about the expected delivery date as
    it will affect customer negatively

    3. What should ISI do?

    ISI should delayed negotiations and emphasis on alternative short term


    solution to complete satellite camera project and if there is no way else,
    they have to disclosed the negative information to HTC.

    4. What is meant by the term, “industry practice”? Is this an example of


    moral relativism?

    Industry practice: We believe that a certain action is commonly


    accepted practice in an industry and competitors behave in the same
    unethical practice. Yes, we think it is a social group relativism and
    argues that a decision is considered legitimate if it is common
    practice, regardless of other considerations (“everyone’s doing it”).

    5. In what level of moral development is Jim Willis? His boss, Fred


    Ballard?

    Jim: Conventional Level As he is concerned his actions are justified by


    an external code of conduct.

    Fred: Principled Level As he justified his action by an individual at this


    level looks beyond norms or laws to find universal values or principles
    and adherence to an internal moral code.
    6. Would a code of ethics have prevented/resolved this ethical
    dilemma? What should be in a code of ethics? What if ISI had a Code
    of Ethics which stated that proprietary information could not be
    disclosed to anyone outside the company and allowed no
    exceptions?

    *YES, prevent only but not resolve,


    *Disclosure of full information in respect to company reputation and
    its position in the market.
    *It will affect company reputation and mutual trust

    7. What would the utilitarian approach to ethical behaviour say about


    full disclosure vs. withholding? Individual rights approach? Justice
    approach? Kant’s categorical imperatives?

    According to Utilitarian approach: The company should have full disclosure as


    it will have negative consequences on the clients. According to Individual
    Rights: Fred may not disclose the full information in case he considered that
    the future contracts is the right to his company According to Justice Approach:
    The full disclosure is must to give the other competitors who can finish it.

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