Ethical Issues in OB
Bus610: Organizational Behavior
Prof. Stephanie Gonzaga
June 27 2011
Corporations will usually provide their employees with a mission statement that often includes the company’s expectations in ethical matters. It is important for the company to instill this code of conduct to their employees. It is even more important for that company to follow the guidelines that they lay out for their employees. Unfortunately, this is not usually the case. It is prudent for the companies to not act in an unethical manner as it may cause problems with customers, sales, or even the environment. An article in Corporate Finance Review, by Marianne Jennings, evaluates five companies that faced huge public relations issues because of unethical behavior. One company included in the article, is the ever notorious BP oil spill in the Gulf of Mexico. Before the BP oil spill took place, managers working for the company were ignoring major safety concerns in the hopes of meeting their increasingly small budget. According to the author, “the internal report on what went wrong stated that (mangers) put off repairing the pump in the context of a tight cost budget” (Jennings, 2011, para. 5). Unfortunately, major safety concerns were not addressed until after the worst oil spill in history occurred. Another company addressed in this article, is Toyota and the very public problem with sudden acceleration. This company initially disregarded customer complaints that their may be a problem with their cars. They later claimed the issue could be fixed by removing the floor mats. The company was insisting that the issue was “limited and fixable at a low cost” (Jennings, 2011, para. 14). However, four days after Toyota released their solution to the public, a fatal truck accident occurred because of sudden unexplained acceleration even after the driver removed the floor mats. Four people died in the accident. Both situations (Toyota acceleration...
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