Management and Ethics Simulation PDF

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Pearson simulation...

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SIMULATION TITLE: Simulation: Management and Ethics

SIMULATION DESCRIPTION: TriState Dairies wants to be considered ethically responsible. The chief ethics officer's job is to establish ethical guidelines and social responsibility activities. The chief ethics officer will select an activity and establish a code of ethics.

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Background

TriState Dairies is a regional dairy firm. The CEO has appointed you to be its chief ethics officer.

The CEO wants to enhance TriState's reputation as a company that is ethically responsible, as required by its mission statement. This is a challenge as TriState's operating expenses are high, limiting the company's ability to modify its business activities.

As chief ethics officer, it is your responsibility to establish ethical guidelines and social responsibility activities for TriState to follow. You want to achieve as great a public benefit as possible, while still minimizing costs to the company.

Defending Social Responsibility Activities

You discuss with the CEO your plan to do the most good at the lowest cost. The CEO asks: "Why don't we just make a financial donation to a worthy cause?" What is the best response?

YOU CHOSE OPTION 3 TriState could simply donate money, but there are additional ways that TriState could achieve the same positive impact at a lower cost.

When the CEO suggests making a simple financial donation, you argue that the company could achieve the same positive impact at a lower cost. This was the best argument in favor of social responsibility activities. While donations can do good, a company in TriState's position can likely find other ways to have a greater impact at lower costs.

Choosing a Social Responsibility Initiative

Because resources are limited, management wants to choose one social responsibility project for immediate action. Success here could lead to more projects down the road. For now, management wants your recommendation: Which project is most likely to have a large social impact at the lowest cost, and lowest risk, to TriState?

YOU CHOSE OPTION 3 Donate surplus TriState dairy products to people who need them.

You decided to donate surplus TriState dairy products to people who need them. This was the most economic choice for a social responsibility initiative, because it simply required TriState to deliver resources that already exist.

Donating Surplus Products – Selecting an Approach

What would be the best way for TriState to donate its surplus dairy products?

YOU CHOSE OPTION 2 TriState could work with community organizations to ensure that the products are stored and refrigerated properly.

You decided that the best way for Tri State to donate its surplus products would be to work with community organizations to ensure that the products are stored and refrigerated properly. This was the optimal choice, because the donated products could spoil if they

aren’t handled properly. Further, community organizations can effectively and efficiently manage distribution of the products.

Code of Ethics – Finding its Flaw

You read TriState's current code of ethics. In summary, it states that employees should be treated with respect, that all business should be carried out in accordance with all applicable laws, and that any violation of TriState's ethical guidelines is cause for disciplinary action.

What is the best criticism of this code of ethics?

YOU CHOSE OPTION 1 It covers no ethical responsibilities beyond conforming to law and supporting employees.

Examining Tri State's code of ethics, you determine that it covers no ethical responsibilities beyond conforming to law and supporting employees. This was the optimal criticism to be made, because a code of ethics should cover responsibility to the public.

Code of Ethics – Determining Ethical Responsibilities

How will you determine TriState's ethical responsibilities?

YOU CHOSE OPTION 3 Determine TriState's core values, and specify goals based on those core values.

You decide to determine Tri State's ethical responsibilities by determining Tri State's core values, and specifying goals based on those core values. This was the optimal choice, because a code of ethics should be based on core values.

Code of Ethics – Enforcement

Now that the code of ethics has been revised, how do you intend to measure how well employees are conforming to the code of ethics?

YOU CHOSE OPTION 1 Performance reviews

You decide to enforce the revised ethics code by using performance reviews. This was the optimal choice. By making the ethics code part of the performance review process, you are demonstrating that ethics matters and each employee is accountable for honoring the code.

Testing the Code of Ethics

TriState is selling a high-fat, high-sugar yogurt snack called Lactose Defiant. Which of the following, if true, would argue that selling the product violates TriState's code of ethics?

YOU CHOSE OPTION 3 TriState is responsible for foreseeable misuses of its products.

When asked why selling an unhealthy yogurt snack would violate TriState's code of ethics, your response was that TriState is responsible for foreseeable misuses of its products. This was the best choice, because misuse of this product – overeating – is clear and easy to predict.

Being Ethical

What would be the best way to produce and market Lactose Defiant in a way that could be considered ethical?

YOU CHOSE OPTION 1 Label the product clearly, to indicate its nutritional hazards and/or benefits.

You decided that selling an unhealthy yogurt snack could be ethically justified by labeling the product to clearly indicate its nutritional attributes. This was the optimal choice because it is the most honest and accurate. It provides the consumer with the best information to make a dietary decision..

Congratulations

The CEO says:

"Well done! The social responsibility activity was successful, and we have a code of ethics we can rely on."

Ethical Dilemma

Jane, a TriState employee, speaks to you privately:

"I'm concerned about the fact that the barns aren't being kept clean and that the animals aren't being checked for disease and infection. I'm not sure what the rules are about this, but I thought you should know because I think it's a problem."

YOU CHOSE OPTION 2 Jane's concerns should be taken seriously and investigated. She should be rewarded for bringing this to your attention.

When an employee informs you of Tri State's unsanitary treatment of its farm animals, you respond by rewarding her for bringing the issue to your attention. This was an optimal choice because it promotes an ethical culture and recognizes employees for doing the right thing. Furthermore, Tri state now has the opportunity to alleviate the issue and better protect customers and employees....