FILAMER CHRISTIAN UNIVERSITY

Graduate School
Masters in Business Administration
First Semester, A.Y. 2021 – 2022

MBA 401: SOCIAL RESPONSIBILITY AND GOOD GOVERNANCE

MS. MA. NETGIL F. GEVELA PROF. MARLENE A. AGUIRRE, MPA, MBA

Student Course Facilitator

CSR SUMMER OUTPUT NO. 2

Case Analysis

A large American company participates in a highly competitive

industry. To meet the competition and achieve profit goals, the

company has chosen the decentralized form of organization. Each

manager of a decentralized center is measured on the basis of

profit contribution, market penetration, and return of

investment. Failure to meet the objectives established by

corporate management for these measures is not accepted and

usually results in demotion or dismissal of a center manager.

An anonymous survey of managers in the company revealed that they

felt pressured to compromise their personal ethical standards to

achieve the corporate objectives. For example, certain plant

locations felt the pressure to reduce quality control to a level

that could not ensure that all unsafe products would be rejected.

Also, sales personnel were encouraged to use questionable sales

tactics to obtain orders, including offering gifts and other

incentives to purchasing agents.

The chief executive officer is disturbed by the survey findings.

In his opinion, the company cannot condone such behavior. He

concludes that the company should do something about this

problem.
 FILAMER CHRISTIAN UNIVERSITY
Graduate School
Masters in Business Administration
First Semester, A.Y. 2021 – 2022

Questions and Answer:

1. What are the ethical problems mentioned in this particular

case and what are the probable causes of these problems?

As aforementioned in the case analysis, due to the decentralized

measurement of achieving the objectives of the company, different

departments went through distress in complying with these

measures and have done operational processes that are against the

ethical standards. These are; reducing the quality control of

products offered, and the practice of unfair competition which

includes gift-giving as a form of bribery.

In a highly competitive company and profit, goals are being

concentrated on, oftentimes, quality suffers even it is one of

the most important aspects and the backbone of a business to

ensure customer satisfaction. Reasonable grounds for these to

happen to rely on various factors, first is manpower

availability, insufficient training, as well as lack of

motivation to work. The second is when machines are not well

maintained with improper calibration and outdated technology.

Third, methods and procedures were not followed and communicated

properly. These probable causes would certainly affect the

quality control to cut and reduce costs so that sales will remain

constant.

Moreover, giving a gift to ensure purchasing agents affect

negatively to the output and overall morale of personnel,

however, employees engage in this unethical tactic because it

eliminates long process of closing a deal and also simplifies the

competition in business, which further would also help in

obtaining increased profits.

 FILAMER CHRISTIAN UNIVERSITY
Graduate School
Masters in Business Administration
First Semester, A.Y. 2021 – 2022

2. Is it right to do something illegal or unethical to maintain

the company’s image and probability?

In a business setting, it is a common undertaking to engage in an

unethical practice whether it is a large or small company. No

matter how committed and passionate the employees are, if there

is pressure from the competitors and there’s an easy possible way

to eradicate them, they would resort to illegal business

transactions. Despite this situation, violating a moral code of

conduct in the competing world of business is not right for the

reason that, the consequences of doing so may lead to a bad

reputation of the company as well as harm employees’ integrity.

Whatever purpose of unethical action it may serve for the

company, it won’t justify the means of attaining the goal and

objectives to signify success in the industry. In the current

situation where doing moral is relevant for stakeholders, many of

them speak out and choose to fight for what they believe is

right. In addition to this, for them to consider a business to be

unethical, could severely damage the company into its social

standing for customers to whether support the business or put it

down.

As expectations to companies go higher as time passes by,

resorting to unethical business practice would not help them rise

above and abruptly achieve success, rather, good strategy and

well-planned operation process do. A business leader should

always take into careful consideration doing what is legal and

morally right to thrive and to protect the image of the company

that has been built throughout the years.

 FILAMER CHRISTIAN UNIVERSITY
Graduate School
Masters in Business Administration
First Semester, A.Y. 2021 – 2022

3. If you are the CEO of the company, what would you do and

why?

It is normal for a CEO to set goals and determine factors that

could help the company achieve greater success in the field of

business. Along with that, it is also the CEO’s responsibility to

create a work culture that champions integrity and credibility

through adhering to ethical and moral practices in the business

operation. Once violated and opposite practices were undertaken,

as a CEO, I should step up to investigate and take proper actions

regarding the wrongdoings that happened in the course of my

business.

Necessary initiatives are: first, I will lead by example, explain

why I have to impose the measurement for increasing profit, and I

will clearly enlighten them the vision of the company so that

we’ll have clarity on what actions to be taken to achieve the

goals. Second, feedbacks and suggestions of my people will be

considered to discuss why they have to engage in those practices.

It is not just knowing what went wrong but also it could help us

prevent repeatable unethical ways to envision actions to obtain

the goal for the future. Third, I will reinforce consequences and

administrative sanctions for unethical activities. Making them

accountable for their output encourages work positivity in the

workplace and for them to make a significant impact on the

business results.

I believe through these, will put to an end the unethical

practices that have been done in my company. Being able to

 FILAMER CHRISTIAN UNIVERSITY
Graduate School
Masters in Business Administration
influence ethically in First
a business
Semester, A.Y.operation
2021 – 2022 will surely end up to

employees' and customers’ satisfaction. Creating a positive cycle

of setting the goal and achieving this through ethical conduct

will foster greater accomplishment and a high-profit margin.