CASE STUDY

ORGANIZATION THEORY
CHAPTER 2: STAKEHOLDERS, MANAGERS,
AND ETHICS

Prepared by:
Abeer Aldhafeeri 8201440
Ahmad Yaser 8191414
Muhannad Banna  8191470
Mohammed Ziadat 8191668
Yousef Halaseh 8191500
Discussion Questions:

1. In your opinion, why did the managers and employees of the meat packing plant behave in the
way they did?

Both the managers and the employees were working under pressure in order to be able to meet the daily
target of meat output, and that is the reason for the increase use of electric pods, and the use of sick cattle
to make meat. This was all done in order to ensure that the firm’s profitability does not suffer.

They had a target of 500 cows a day, and they wanted to meet that target, even if it meant using sick cattle
or using inhumane treatment of the cattle.

It is important to note here that the main cause of the issue in the first place, was due to setting this daily
cow target, which of course was set by the CEO, which in this case were also the Shareholders. This
meant that there was a conflict of interest and that there was no corporate governance in this situation
through a board of directors.

2. Outline a series of steps the plant’s managers should have taken to prevent this problem from
occurring.

The plant's managers should have followed the law of not allowing the usage of sick cattle as per the
federal regulations explicitly outlawed for fear of human health and disease issues.

They should have considered the ethical values of animal treatment and the existence of humane society.

Managers should have called for a Code of Ethics that will provide a structure and culture that supports
ethical behavior

They should encourage employees to act ethically by putting in place incentives for ethical behavior and
punishment for unethical behavior.

They should have made it clear to the CEO that they will not engage in unethical acts in order to boost the
company's revenues. Even if the CEO would pressurize them to continue using inhumane methods, they
could use methods such as calling a strike and halting production at the facility.
This will make the CEO sit up and take notice of his bad behavior.