Ethics Case Study: Trans-American Paper Company
Ethics Case Analysis: Trans-American Paper Company
In resolving the ethical issues associated with business conduct the “seeing-knowing-doing” model is very useful. In this case analysis, we scan all the Trans-American Paper Company’s (TAPC) proposed/potential business options for the ethical issues. First, we will identify the ethical issues involved and its ethical/business/legal implications. Second, we will see how we can resolve these ethical issues and come up with best/second-best options. Finally, we develop an implementation strategy by leveraging ethical theories that identify (step one), resolve (step two) the ethical issues and implement (step three) our decision.
In the proposed “Option 1”, the ethical issue is with the “generous gift or facilitation fee” that is to be paid to the government official to persuade the city to reduce its electricity price. This gift/fee is influencing the foreign official to use his influence with a foreign government to affect the decision. Hence such an act is in clear violation of FCPA (a.1.B). While conducting business in host countries, a company should strive to uphold its highest possible legal standards above and beyond the required host country’s legal standards.
In the proposed “Option 2”, the ethical issue is the plant’s continued emission of waste products into the river. Here “Theory of Relative Development” is particularly useful. Since Malaysia is a developing country, it may not seem fair to apply the same environmental standards that are applicable to developed countries like US. One may argue that, in such developing countries, human survival is the immediate concern than the long-term effects on the environment. However the same theory also makes us think about the global consequences of this local action. Further, Deontological theories (specifically Kant’s categorical imperative) challenge’s us to reason “What if everybody acted this way?”. If every company makes the same excuse, then its global
In resolving the ethical issues associated with business conduct the “seeing-knowing-doing” model is very useful. In this case analysis, we scan all the Trans-American Paper Company’s (TAPC) proposed/potential business options for the ethical issues. First, we will identify the ethical issues involved and its ethical/business/legal implications. Second, we will see how we can resolve these ethical issues and come up with best/second-best options. Finally, we develop an implementation strategy by leveraging ethical theories that identify (step one), resolve (step two) the ethical issues and implement (step three) our decision.
In the proposed “Option 1”, the ethical issue is with the “generous gift or facilitation fee” that is to be paid to the government official to persuade the city to reduce its electricity price. This gift/fee is influencing the foreign official to use his influence with a foreign government to affect the decision. Hence such an act is in clear violation of FCPA (a.1.B). While conducting business in host countries, a company should strive to uphold its highest possible legal standards above and beyond the required host country’s legal standards.
In the proposed “Option 2”, the ethical issue is the plant’s continued emission of waste products into the river. Here “Theory of Relative Development” is particularly useful. Since Malaysia is a developing country, it may not seem fair to apply the same environmental standards that are applicable to developed countries like US. One may argue that, in such developing countries, human survival is the immediate concern than the long-term effects on the environment. However the same theory also makes us think about the global consequences of this local action. Further, Deontological theories (specifically Kant’s categorical imperative) challenge’s us to reason “What if everybody acted this way?”. If every company makes the same excuse, then its global