As per the scenario, the discussion of facts, ethical issues, stakeholder and impact on them are necessary for the implication of the ethical decision-making model. The factors that are to be discussed in the paper are the decision-making the process for ethics. The factors of the ethical decision-making process are discussed in the paper to come to the conclusion as to what should be done (as Paul LaFleche, Deputy Minister of Transportation) in the fabricated situation.
The provided scenario includes certain facts that are essential to be noticed and focused upon to make a proper ethical decision. From the case study, it is observed that Diane Saurette (senior civil servant) revealed that the province has come into a 10-year contract with Bay Ferries Ltd. The request for proposal is flexible as it is an open agreement and there is no such requirement for the selected ferry operator to provide the services on fixed terms. As per the contract, the government will provide $10.2 million for the current year and $9.4 million for the year, for operating subsidy which is only fixed for the first two years. In addition to it, the contract also binds the government to pay startup cost of $4.1 million which includes terminal upgrades and $9 million for retrofitting of a ferry.
While discussing the new contract with the media, Saurette highlighted that that government had spent $41.5 million for two seasons in their deal with Nova Star Cruise Ltd., and now their range is of expense is $25 million. The new contract has a charter cost of $4.5 million a year which is lower than the charter of Nova Star that was $11 million and it was also to be increased to $16 million in the coming three to four years. There is a difference between the services of Nova Star Ltd. and Bay Ferries Ltd. that is the speed of the catamaran. The position of Nova Star is a tourist destination because the speed cuts half the journey and almost guarantees sleep-over in Yarmouth. The contract with the new company only provides the services of a ferry. Another fact associated with the case study is that they will require more funds as according to the market research they will need another ferry to handle the predicted traffic. Bay Ferries Ltd. demands additional $ 15 million for the additional services, and if such is not accepted, then they plan to cancel the contract without any penalty on them.
One of the biggest ethical issues noticed in this scenario is that Bay Ferries Ltd. entered into a contract with the government to provide ferry services. After the acceptance of the contract, the company has demanded additional funds for a new ferry service that will help them in fulfilling the predicted demands of such services. The demand for additional funds by the company is not ethically correct as they should have made a proper research before entering into the contract. After the acceptance of the contract, additional demand for resources is not justified. Moreover, the company also threatens that if the government does not accept their proposal, then they will cancel the contract. As the contract is flexible and a clause in the contract allows the contracting company to cancel the contract without any penalty, Bay Ferries Ltd. is pressurizing the government to accept their unjustified demands or they will cancel the contract. The cancellation of the contract because of not accepting additional proposal is an unethical act of the company.
The main stakeholders are the government and Bay Ferries Ltd. There are other stakeholders as well, but these two are main as they have a direct concern with the new contact. As in the case LaFelche and Saurette are representing the government, therefore, these two are the primary stakeholders along with the new contracting company. LaFelche is the Deputy Minister of Transportation and needs to take a quick decision and settle out the differences for the contract. Suarette is a senior civil servant and is along with LaFelche in this case. Bay Ferries Ltd. also plays an important role in the case as they have entered into the contract and have now demanded additional funds to meet the predicted demands or will cancel the contract.
One of the alternatives is that the government should agree to cancel the contract and give the tender to a new ferry operator so that the issue is resolved without any inconvenience. Another benefit that the government can gain from the new contract is that they can eliminate the clause for the cancellation of the contract without penalty. The suggested alternative is moral because the termination of the contract is by the company and therefore, the government has the right to give the contract to another company. Another alternative is that the government should hold meetings with the Bay Ferries Ltd. to solve this issue. As the increased demand is only a prediction the government must ask them to continue the contract with agreed resources for the first year and if the predictions as per the market analysis turn out to be true then the contract shall be extended. The suggestion of the alternative is deemed to be moral because if the predictions of the company are correct, then they should be allowed with sufficient funds to meet the demand that exists in the market.
LaFelche, a stakeholder, will lose his job if the contract is canceled and given to a new ferry operator. The government will be heavily questioned on their act whereas, the Bay Ferries Ltd. will not be much affected as they will withdraw from the contract at their wish without any penalty.
The five theories of ethics discussed in the class are ethical egoism, utilitarianism, the categorical imperative, distributive justice, and virtue-based. These theories have some differences, and some of them focus on fairness and rules while some concentrates more on the maximization of self-interest. From the related theories, it can be discussed that the acts of Bay Ferries Ltd. are not ethical because they are not willing to follow the defined rules and principles. There additional demand for resources and non-fulfillment of such demands can lead to cancellation of the contract is against the principles and has a negative impact on the moral relationship. The acts are not fair, and such decision as per the theories cannot be termed ethical. The theory of Utilitarianism explains that the greatest deed is that which is for the greatest number of people. The additional requirement is solely for the maximization of profit for the company and not for the benefit of other there it according to the discussed theories, the acts of the new ferry operator are not ethical. LaFelche must hold a meeting with Bay Ferries Ltd. and discuss the details of the market research. He must ask the operator to carry on with the original contract for one season with a promise to extend the contract according to the desire of the operator if their predictions about the market are correct.
Works Cited
Brighton, Rachel. "BRIGHTON: Ferry deal is good news for Yarmouth, bad news for N.S." 1 April 2016. thechronicleherald. http://thechronicleherald.ca/business/1353536-brighton-ferry-deal-is-good-news-for-yarmouth-bad-news-for-n.s. 16 July 2016.
