Business Ethics Case Study: ABC Company

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Facts: Luke works for ABC Company and has been asked to work on a Project. The project is to build an adult entertainment retail store on a recently purchased land by ABC Company. The plans for the store will be made public in a months’ time and it will significantly decrease the surrounding neighborhoods property values. Luke’s brother, Owen, lives in the same neighborhood. Owen has been considering to sell his house and has received a current market price offer but, he is undecided if he should sell now or later. Owen is unaware of Luke’s project and consequences that will impact his property value and/or house sale decision. Issues: Luke is very close to Owen, who has entrusted him with his real estate property opportunities and beliefs. …show more content…

We can define the stakeholders who are: Owen, the neighborhood, the community/economy, Luke, the company, and other employees. Utilitarianism: In the Utilitarianism theory, Luke should only chose the best solution that will benefit the majority of the stakeholders. If Luke discloses information to Owen he will keep the trust between them. The neighborhood and community will be notified by the company in a month’s time and social responsibility of business may be imposed. The company may decide to terminate Luke, replace him with someone else, and if I advise him to take this action my job may be at risk. Because the neighborhood and community will be affected by the company and not by Luke’s decision and the negative impact will be towards Luke himself, the company, and other employees, we can safely say that this action will cause the most damage to the stakeholders. On the contrary, if Luke keeps his business obligation of confidentiality to the company the results will benefit the majority of …show more content…

Let’s use the example from Utilitarianism, where Luke discloses the information to Owen to keep a positive relationship; there would be no trust between employees and their company. Companies will not want to hire this types of employees because they would have no business. Business will not be delivered to the community and impact society as a whole. If we look deeper, a large number of society does not agree with adult stores because of moral beliefs and the bad reputation it brings but, the company makes money from its clients and creates jobs. The company pays its employees and spends money on supplies which benefit the economy and in turn benefit society as a whole. Now, we can see that if everyone was to follow Luke’s choice of action and breach confidentiality it will not only impact the trust of employees with their companies but also, tremendously affect society as a whole. This means that if Luke keeps his business obligation of confidentiality and everyone was to follow this universal law, in the long run society would be better