CASE 2: Roger Berg
BUS500M Management Principles and DynamicsProf. Reynaldo Lugtu (DBA Cand.)
| Glenn CabacangRj ManalangWenzi Jeanne MartinezJoyce OngRyan Yuquico
Roger Berg, the Vice President for Planning of the Lake Corporation, had to recommend a subcontractor for the environmental study project in connection with their planned large resort. The contract has been decided in principle to be awarded to Ceil Grant, one of their regular subcontractors. However, after a lunch conversation with Del, who represented a larger contractor firm, Roger changed his mind, now recommending Del’s company to take on the project instead. Faced with a situation of moral dilemma, he has to decide what would be the right thing to do. This case provides a general overview of ethics management issues. Roger’s situational case where his management decision on the new project is on the verge of being influenced by conflicting interest is just one of many instances that usually occur in a corporate setting.
II. Point of View
Roger Berg, Vice -President of Planning Division, Lake Corporation.
III. Statement of the Problem
Which subcontractor should Roger Berg recommend to his bosses?
IV. Statement of Objectives
* To determine what actions should Roger do in order to resolve the ethical dilemma he is facing. * For the company to award the project to the deserving subcontractor. * To be able to look for a treatment to Roger’s wife without resorting to violations of management ethics. Long term:
* To develop and implement bidding process and accreditation policies in selecting contractors. * To protect the reputation of the company by abiding with the code of conduct and policies upholding corporate values.
V. Areas of Consideration
* Roger Berg, a husband to an ailing wife, is the Vice President of Planning of the Lake Corporation. The decision to recommend a subcontractor for an environmental study project is within his jurisdiction. Further, he has already decided to have Ceil's company handle the project based on their proven and tested past transactions, as well as the fact that their survival is highly dependent to the Lake Corporation’s support and projects. However, such decision was challenged when he was faced with a personal dilemma when another subcontractor, Del, aiming for the same project made side talks about his ability to possibly get a shot for Roger’s wife to get a consultation schedule slot with a popular doctor who specializes on her disease. Such decision-making will test Roger’s character and ethical standards. * Based on the conversation between Del and Roger, it provides a scenario that both men quite knew each other already and there is somehow a degree of closeness between them. Hence, it could be assumed that there is sincerity in Del’s words when he declared that he can try getting Linda in the waiting list without taking advantage of the situation and using it as an excuse to fully demand for the project from Roger. * Del’s seeming acceptance of Roger’s justification on his inclination towards recommending Ceil’s firm to handle the project was something to welcome in the case. While it may be true that it was Del who started turning the conversation to a matter that is somewhat more personal, the real intentions of opening up the concern was not completely established in the case. Hence, it is only fitting to give Del the benefit of the doubt and clear him from an outright supposition that he has the goal of using his linkage to the doctor badly needed by Roger as a leverage in winning the environmental study contract. * Roger’s recognition of Ceil’s high reliance on Lake Corporation’s business trust and partnership for her company’s welfare is a good point to take into account as he strives to promote his company as a socially responsible entity. The company’s business transactions with a smaller company despite the...
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