GROUP-4

INTRODUCTION :

In 1986, they began offering mobile telephones, becoming one of the first retailers to enter the wireless market. Since then, The Shack has become an established wireless authority, selling more than 73 million mobile phones. In more recent years, their commitment to breaking new ground has included introducing the first affordably priced stereo receiver with digital technology, the first mobile/ portable cellular telephone that consumers could install themselves, and the first high-performance satellite television system for installation by "do-ityourselfers..This is a casestudy about a problem that is arised in the Radioshack Corporation because of its CEO Edmondson who cheated the company in his resume.

1.Evaluate this situation from the view point of David Edmondsons ethical leadership. What could Radio Shack have done differently? David Edmondson has cheated the company for his own well being and doesn't prove himself as an ethical leader. His cheating has resulted in company's loss where his leadership quality doesn't seem to be ethical. Edmondson should be an example to others, instead if he violates the ethical qualities then he is not fit to be a manager.

 It is necessary to have ethical knowledge before we work with an organization, if not the person will implement his unethical actions in his company. Manager has to be ethical, honest and a role model for their employee, who could follow him to have the work done for the company. The managers also have a social responsibility beyond making profit, to protest and improve the societys well fare. If the leader does not follow honesty, employees will take a chance of being unethical. We think Mr. Edmondson had done very unethical and dishonest performance for the company and the society as well.

 The company could have taken a lawful decision for being lied. Company should have fired him instead of accepting his resignation and should have not given him that severance package either.
Also they can conduct ethical training on how to concentrate on prospective development.

2. What stakeholders might be impacted by this situation? What concerns might each stakeholder have had? Were any of the stakeholder concerns in conflict with each other? Explain. What impact might this have had on employees?

orporate stakeholders will definitely have an impact C because of this situation. They are the ones who are concerned as they are dependent on the organization and their decisions.
Stakeholders like employees, suppliers ,customers, distributors as well as shareholders will be concerned in their respective manners.

 These concerns will later turn into conflicts and make everyone to panic. The employees may try to quit their job due to the bad reputation of the company because Mr. Edmondson was unwrapped by the press, at the same time when the companys sales and market shares fell down.
Since the market value is low there might not be proper supply of materials and the suppliers will be affected. On the other side, the customers will lose trust in the organization. The shareholders having an investment in the company will also face a big loss.

3.Do you think the board decision to fire Edmondson was tough as Len Robert suggested? Why or why not? Why do you think Mr. Roberts would have described this decision as such? The decision to fire Edmondson was not tough as Len Robert mentioned. Since he has set up an unethical part in the organisation where he has served for 10 years in a senior most position.It is likely to be expected that his employers too would follow his way, which is not advisable and preferable for the organisation's development.

 Having worked for 10 years in revitalizing the company side-by-side Robert would have found it difficult to fire him. Also when it comes to corporation, trust is the vital role that plays for its success. When this trust is broken then there is no place for a person who is untrustworthy in an organisation. Also he was not efficient for a CEO post. So its better to remove Edmondson from the company in order to restore the integrity and trust of the company.

4.What impact do you think the companys severance package to Mr. Edmondson might have?

First of all by paying such severance package to Edmondson clearly tells us that the company was very ethical and they dont want to cheat Edmondson.

RadioShack has paid to Edmondson according to the work he did in this organization.
It has paid 1.03 million according to his service and had given him more benefits. Although he is a liar the company has followed their ethics by paying him according to the services rendered by him.

5.Could any organization ever prevent a situation like this from happening? Why or why not? What could they do? How could the companys code of ethics play a role?
It is definitely possible for any organization to prevent a situation like this.

They need to be very strict while choosing the applicants.

A cross check with the institution of the applicant must be done. Every organization must have a HR team who is in charge of the selection process.These people must take up the charge of cross-checking with the institute of the applicant.

 The company must have a set of rules for the employers to maintain their ethical value. Care must be taken that these rules must not be broken by any of the employers. They can force legal actions an the employers who break the organizations code of behavior.

A training of ethical program can also be conducted in the organization for the freshers at the initial stage.

6.In the March 2004 issue of wired magazine, it reported that 44 percent of Americans lie about their work history. Whats your reaction about this statistic? What problem can lying on a resume create for an organization?
Management is affected by a nation's form of government and the organizational decisions are generally based on the government policies.

Being a huge population involved in unethical behavior it not only affects the organization but affects the entire country. The statistics shows that 44 percent lies on their resume to find a job, so it affects the countrys economy. And the persons who lie would not have the capability to do the work assigned and have lack of knowledge about that work.

 Appointing a dishonest person, the company has to face losses and bad reputation in future.

To prevent this the person in an organization must have ethical concern both inside and outside the organization. So its necessary for an organization to check his background before appointing a person.

CONCLUSION: Good managers can turn straw into gold. Poor managers often do the reverse. Salaries and the performance must be on the basis of job performance and job role. Ethics are standards that govern human conduct.

Ethics have shaped today's organizations and thus justifying the existence of business

ANUSHA VANATHI.K PRASANNA VARADHAN RAM KUMAR SURYA MUTHUKUMAR

THANK YOU!