Case Study #1
The Test of Transition:
The Case of the Community Preservation and Development Corporation
What is ethics? Ethics is known to be the study of morality, the guidance of what is considered right and wrong: but what is right and what is wrong? A question that has been answered based on the norms of individuals, societies, and cultures. According to Manuel Velasquez, ethics is defined as “the discipline that examines one’s moral standard or the moral standard of society” (pg. 10). For many years we have been taught of what is considered to be right or wrong, judged from the moral standards that are acceptable by society. Right and wrong is judged based from the reasonable and unreasonable acts and the way it impact society. Ethics plays a major role in the decisions making and the way we do things, not only humans but also as business entities. Researchers have argued that an organization should not pay the consequences of the unethical decisions that managers or the board of directors have committed since is not the organization but the individuals making the decision. Businesses are considered to be individuals no matter if they are solely owned, in partnership, or corporation; since in the end they all face the challenges as an individual person. Business ethics can be defined as “a specialized study of moral right and wrong that concentrates on moral standards as they apply to business institutions, organization, and behavior” (Velasquez pg. 12 ). In order to understand the concept business ethics one should consider if the decisions held by these managers, directors and owners of these businesses are reasonable and if they are in accordance not only by the law but also if they are morally right or wrong. The case that is going to be analyzed throughout this essay is the case of the Community Preservation and Development Corporation (CPDC). Community Preservation and Development Corporation (CPDC) is a non-profit housing development company in the United States. It was founded by Eugene Ford, one of the most famous developers of low-income housing. He visions the company to operate as a commercial business. He approached to Leslie Steen, the developer of condominiums and townhouses in Washington, to become part of the members of the organization. She was also the Director of Portfolio Finance at the National Housing Partnership (NHP). In 1989 Steen became the head of the organization and she became the first president of CPDC. The case of the Community Preservation and development Corporation has brought up many ethical and unethical practices, below is a summary of what has been found as ethical and unethically practices committed by the board members of this organization. Ethical Practices
1. Reviving assisted low income housing projects that had become or were at risk of becoming dilapidated, crime ridden disasters. * In the case it is found that CPDC wanted to assist low-income housing projects that were not working or were at risk of becoming dilapidated. Ford, the developer of CPDC envisioned that his company could become the model for other developers of non-profit housing development. 2. Provided Service Programs such as:
A College and career Center
* Two daycare Centers
* Customer Service and technology support.
* Recreational Youth Center
* Job Training
* Developed an adult literacy and work training program. * Residents were able to access these services that CPDC was providing. CPDC was ethical by opening and providing these services not only for the youth but also for the veterans in ways that it could benefit both. CPDC made many arrangements with other organization for their housing area to get services like customer service training and technology support from companies such as Bell Atlantic, Verizon, etc. The organization became very famous due to these services that they were able to...
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