Good Example Of Ethical Dilemma Term Paper

The major ethical dilemma for the company is that it is trying to figure out whether to outsource the company’s telecommunication department, or whether to continue producing the telecommunication requirements themselves. The analysis prepared by an assistant controller of the company has failed to reflect some of the fixed costs amounting to $300,000 per annum. The chief financial officer is aware of this, and her fiancé is the head of the telecommunication department. The dilemma to her is to whether to give the correct analysis to her boss. The addition of $300,000 in the analysis is going to tilt the balance in the outsourcing of the job’s favor. It is going to reduce the NPV of the current production and will make outsourcing more feasible and profitable option given the current circumstances. The dilemma for Pamela McDonald’s is to whether give the correct analysis to her boss or not. She has been hired in the company on the premise that she will do everything n the interest of the company. However, if she tells the true cost and benefits of the outsourcing decision to her boss, she risks the job of her fiancé and number of people working in the communication department, as the company will find that buy decision is more feasible then make decision in buy or make analysis. It is very important for Pamela to quickly decide what her stance will be as the meeting is due in few days time. She needs to choose an option she will go with. She has a choice of either going with the company or her fiancé. This is a conflict and dilemma that Pamela McDonald’s faces.
The major stakeholders of Pamela’s decision are the stockholders and the owners of the company, the employees working in the telecommunication department, the employees working in the other departments of the company, and her fiancé Roger Branch. Stockholders and owners of the company would want the company to be as profitable as it can be. It will mean that they would want to cut down the cost even if it means closing of the telecommunication department. The employees working in the telecommunication department are going to be affected as they are going to lose their jobs with the closure of the department, and will have to undergo mental stress until they find a new job which is as good as this one. Similarly, the employees working in the other departments are going to get a higher bonus and a better raise if the company’s profitability rises. They will support the decision of closing the telecommunication department if it increases the profitability of the company. Similarly, Roger Branch is going to affected as he will lose his job, and will lose out on benefit payment and salary that he earns from the company. The last, but the most important stakeholder of this scenario is the Pamela MacDonald herself. She needs to look after the interest of the company as she is occupying a key post, as well as she has responsibility for the workers in the company, and on top of that she needs to look after the interests of her fiancé, Roger Branch. All of these stakeholders have conflict of interest, and will ask Pamela to choose the option which will benefit them the most. Pamela MacDonalds needs to make a choice that is going to benefit the most number of the people and will be costly for the fewest.
If Pamela chooses to give the correct analysis to her boss, he will probably close down the telecommunication department in the interest of the company, and the major shareholders. She, as an executive in the top management, has a responsibility towards the interest of the company. Shareholders and owners of the company have entrusted her with an important job and they expect her to take decisions that are most beneficial for the company. Similarly, if she submits the wrong analysis to her boss, she will be able to save the job of her fiancé and hundreds of people working in the telecommunication department. However, that action will be against the interest of the workers working in the other departments of the company. The other alternative for Pamela MacDonalds is to try convincing her boss that closing down the telecommunication department is not the solution as it will cause massive unemployment. People working in the company have kids, house mortgages, and other expenditures. These workers need the job more than the top executives and the shareholders of the company. She should try to convince her to not fire anyone or to adjust the workers in the other departments of the company. She also has an option to try to make sure the company makes severance payment to the people who are losing their jobs in order to compensate them for their unemployment as a result of the rightsizing decision of the company. This will build a good rapport of the company among the employees working in the other departments of the company.
The best option for Pamela is to provide correct analysis to her boss. This will make sure that she is fulfilling her responsibilities to the company. Similarly she should also try to hold a meeting with the shareholders and the owner of the company, Larry. She should explain them that closing the department may make the company more profitable, but it will lead to massive unemployment. Some of the workers really need the job to make their ends meet. If the owners and shareholders insist on closing down the department, Pamela MacDonalds should try to tell them to do it in stages. In the first stage, the workers should be made redundant and should be paid severance money. This will ensure that their immediate requirements are met without having to go through any troubles. In the second stage, the workers should be trained so that they can adjusted in the other department. Those workers who acquire new skills should be adjusted in the other departments of the company, whereas the rest of the workers should be given a golden handshake opportunity. This will be a onetime expense, and the company will get rid of the department that is contributing to higher costs. It will make the company more profitable, and the stockholders and the owners of the company are going to enjoy higher profitability. The severance payment and golden handshake scheme will be a onetime expense, but it will ensure that the company has done things that are morally and socially correct.