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Leading Ethically and Legally at Home and Abroad

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The nature of an organization’s business and the environment the business operates in will guide management in ensuring that decisions are both legal and ethical. In this project, you will expand your ability to make ethically responsible decisions by applying an ethical decision-making model to resolve a business ethics case. Begin with Step 1: Perform Ethical Analysis.

Competencies

Your work will be evaluated using the competencies listed below.

1.3: Provide sufficient, correctly cited support that substantiates the writer’s ideas.

1.4: Tailor communications to the audience.

1.6: Follow conventions of Standard Written English.

2.1: Identify and clearly explain the issue, question, or problem under critical consideration.

2.4: Consider and analyze information in context to the issue or problem.

2.5: Develop well-reasoned ideas, conclusions or decisions, checking them against relevant criteria and benchmarks.

5.1: Develop constructive resolutions for ethical dilemmas based on application of ethical theories, principles and models.

5.2: Assess the implications of legal, ethical and cultural (national) standards on an organization’s operations in global markets and make recommendations for appropriate actions.

5.4: Resolve workplace conflicts using the optimal approaches and techniques for the situation and involved parties.

7.4: Analyze the impact of international and foreign laws on US organizations acting domestically and abroad.

9.3: Apply the principles of employment law for ethical practices and risk mitigation.

Step 1: Perform Ethical Analysis

Vice President Dodger has provided you with the Electropic LLC case file, which details recent events at Electropic LLC, one of Colossal’s technology companies. He has asked you to analyze the legal and ethical aspects of the case. The ethical aspects of the situation seem complex, and you realize that you need a structured way to think through the various resolutions to the case and their implications. You know that there are many different schools of ethical thought and a variety of frameworks or approaches for analyzing ethical problems, but you decide that the best approach to this particular situation is Badaracco’s right versus right framework (see attachment)

You’ll start by working through the right vs. right ethical analysis, considering the various options for action and the winners and losers for each option. What are your recommendations for the best ethical course of action? Be sure to analyze all four questions and all three tests of Badaracco’s framework.

When you’ve finished analyzing the ethical aspects of this case, continue to the next step, in which you’ll consider any legal issues that could affect your decisions.

Electropic LLC case file

Electropic LLC is a respected and profitable website design and hosting company in Colossal Corporation’s technology group. Melissa Aldredge has been a project manager at Electropic LLC for several years and was recently considered for promotion to a senior project manager position. Ultimately, the promotion was awarded to another long-term employee, June Pyle. June and Melissa have a history of one-upping each other and sharing an internal rivalry within the company.

Melissa recently reported internally that she had learned that June, who was given the promotion over her, had never finished her MBA degree. All of June’s business cards have “MBA” after her name, and the signature line of her email reads “June Pyle, MBA.”  

Electropic LLC’s policy manual states that potential employees must submit transcripts for all degrees listed on their resumes. However, this requirement was not in place 10 years ago when June Pyle was hired. June has a history of stellar performance and was promoted not because of her MBA, but because of her consistently exemplary work. June has received excellent performance evaluations during her time at Electropic LLC, and her leadership has led to increased revenue as well as positive press for the company. Her record of success is what led to her promotion.

As a result of Melissa’s report, the director of human resources sent an email to all employees who were hired prior to the policy change requiring transcript validation, asking that they provide transcripts to validate their credentials. June did not respond to the director’s request for transcripts and was called into the director’s office. In a very tense and tearful interview, June confessed to the director that she does not have an MBA. She admitted that she was 12 credits away from completing her degree, but when her dad got sick, she had to drop out. She said that she really needed a job to support her family and she put the MBA on her resume hoping it would help her find a job. She shared that she always intended to go back to school but became so busy with work that she didn’t have time. Once she was hired, she felt that there was no turning back and she had to keep the lie going by placing “MBA” in her email signature line and on her business cards.

An MBA was not a requirement for the assistant project specialist job June was hired for 10 years ago, but four years ago, it was made a requirement for the senior project manager position she holds now. Two of the current senior project managers do not have MBA degrees because they were promoted before this requirement was in place.

Vice President Dodger has asked you to write a memo with your recommendations on how human resources should handle this issue. June has a record of excellence with Electropic LLC, and her superiors would be unhappy to lose her; however, ethical practice and the law must be considered here as well.

Step 2: Perform Legal Analysis

As you continue to sift through and consider all the details of the Electropic LLC case, Vice President Dodger reaches out with an important note:

INBOX (1 NEW EMAIL)

From: Kenneth Dodger, Vice President, Colossal Corporation

To: You

Just wanted to remind you that in addition to the ethical aspects of the Electropic LLC situation, there may be legal implications that the human resources department needs to account for before moving forward with any plan of action. To that end, you’ll need to review any relevant information about fraud and employment at will, that might affect what could or should be done about the situation at Electropic LLC.

When you’ve worked through the possible legal implications and arrived at a recommended course of action for Electropic LLC’s HR department, it’s time to present your analyses, recommendations, and action plan in a report.

Please use your outline and research notes to inform the writing of your report.

That’s all for now. I know this is a tricky case. Thank you for your efforts.

Step 3: Write Your Electropic LLC Report

Use your outline and research notes to prepare your report. Be sure to meet the following requirements laid out by the VP:

· Using Badaracco’s right vs. right framework and your legal analysis, prepare a report.

· Include in your report a detailed analysis of all four questions and three tests of the Badaracco framework; also include an analysis of the legal issues.

· Include a specific recommendation on what actions, if any, HR should take based on your legal and ethical analysis and conclusions.

· Include APA-formatted in-text citations and an APA-formatted reference list (do not format the body of the report using APA style, just the reference list

· The report should be no more than 10 pages (double spaced, 12-point font; the reference list does not count toward page limit).

· Title your file using this protocol: lastname_Electropic_date.docx.

Step 4: Review the Global Shippers, Inc. Case File

Now that you’ve submitted your response to the Electropic incident, you turn your attention to the Global Shippers case file. The vice president has appointed you to a board of confidential advisors to discuss whether the Global Shippers CEO’s actions were legal and ethical.

You open the file. Reading over the specifics of this situation, you soon understand that the VP is legitimately concerned about the legal and ethical violations.

In the next step, you will gather the information you need to identify important issues for the VP.

Global Shippers case file.

One of Colossal Corporation’s import-export companies, Global Shippers, Inc., a New York–based company with facilities in over 37 countries including the United Kingdom, recently submitted a bid for an exclusive contract with the government of the small country Neristan. The contract would provide Global Shippers with the exclusive right to export goods from Neristan’s government-owned factories to the United States for distribution and sale. It is projected that this contract would provide over $20 million in revenue to Global Shippers per year, increase its stock value, and allow the company to expand its international operations and employee base.

Shortly after Global Shippers submitted the bid, Neristan’s prime minister invited the CEO of Global Shippers, Robert Manning, to dine with him at the most luxurious restaurant in Neristan.

After Roger arrived to the dinner, the prime minister ordered the most expensive bottle of wine on the menu, and as they drank, he made a proposal to Manning. The prime minister said, “Here in Neristan we value relationships above all else, and we have a great opportunity to help each other.” He went on to say that he was recently tasked with “selecting the best company for Neristan’s contract,” and he thought that “Global Shippers has what it takes.”

Manning was excited by the prime minister’s comments. He agreed, “There is the potential here for a great relationship.” Manning gratefully accepted the prime minister’s offer of another glass of wine and listened intently. The prime minister then went on to say, “It is customary in Neristan for business associates to help each other prosper, and if you ensure a payment of $100,000 is wired to my personal account in the next week, I will make sure that Global Shippers gets the contract.”

Manning, who had dealt with similar requests from other foreign diplomats in the past, responded, “I’m afraid that such payments are prohibited in my country, but why don’t I fly you to New York tomorrow so we can discuss business further?” Manning went on to say, “The trip will be all expenses paid, and you will stay in the penthouse at the finest New York hotel. If, after we are done conducting business, you want to see the sites, I can show you around the city, and you can stay on us for a while.”

The prime minister gratefully accepted Manning’s offer, and Manning paid the $3,500 bill for the dinner and wine on his corporate account. The next day the two flew first-class back to New York. After conducting business in New York for a day, the prime minister and Manning traveled around the city, went to the theatre on Broadway, and dined in the finest restaurants. Everything was paid for by Manning’s corporate accounts. After several luxurious days in New York, the two of them then flew first-class to Los Angeles, where, after several days of “living it up on the town,” they met with Global Shippers Inc.’s board of directors, and the prime minister announced that Global Shippers had been awarded the contract. The prime minister stayed in Los Angeles, all expenses paid, for two weeks after this meeting, and then flew back to Neristan.

In the meantime, upon the announcement of the contract acquisition, Global Shippers Inc.’s stock skyrocketed, and the company began hiring more warehouse employees in Neristan and the United States to manage its new lucrative contract. Manning received a substantial bonus from Global Shippers Inc.’s board of directors for his excellent work related to acquiring the Neristan contract.

Six months later, the first shipment of goods was ready to leave Neristan and go to the United States, but the customs officials on the Neristan border refused to allow the goods to leave the dock. The customs officials stated that they needed time to inspect the goods for illegal contraband and that it could be weeks before they were cleared for shipment. Manning, who was visiting the prime minister at the time, was called to the customs office by his head warehouse employee. Manning slipped the customs officials $100 each and asked if they could expedite the shipment. The goods were cleared the next day, and the first shipment left for the United States.

A few weeks later the prime minister of Neristan was arrested by Neristan authorities for embezzling government funds. Manning began to worry that some of his actions may have crossed the lines into illegal or unethical activity and (given his close relationship with the prime minister) that he may soon also become the subject of investigation. He called the vice president at Colossal Corporation, told him the whole story, and asked him if he could help defend the legality and ethics of his actions.

Step 5: Gather and Analyze the Information

While you have some general awareness that there are many ramifications of international transactions from legal and ethical perspectives and many cultural differences among countries, you realize that you need to know a lot more about these subjects before you can attempt to respond to the VP’s questions.

Before you begin your research, listen to this introduction to cross-cultural awareness podcast as it relates to working with people from other cultures. Then review the following topics as you work to meet the VP’s request: international business ethics, laws, and regulationscross-cultural ethical business decision making (specifically focus on the “Ethical Theory in Global Business” resources), and country cultural differences.

Step 6: Engage in the Global Law and Ethics Discussion

Now that you’ve gathered information and analyzed the legal and ethical consequences of Manning’s actions as outlined in the Global Shippers case file, you’re expected to discuss your conclusions and rationales with the board of confidential advisors convened by Vice President Dodger. Two main requirements will structure this discussion:

· You are to fully analyze the following questions:

· Were Manning’s actions legal under the Foreign Corrupt Practices Act, and what are the possible penalties for violating the act?

· Were Manning’s actions legal under the UK Bribery Act and what are the possible penalties for violating the act?

· Were Manning’s actions ethical, particularly in light of differing cultural norms?

When answering these questions, be sure to apply the following guidelines: Provide a full explanation for why all his actions were or were not legal and ethical in your discussion, including a full rationale for each conclusion. This post can be as long or as short as you need in order to effectively make your points.

Step 7: Submit Your Work

Recommended Project Delivery

StepDeliverableFile-naming protocol/Submission instructions
Step 3Electropic LLC reportlastname_Electropic_date.docx
Step 6Global Shippers discussionlastname-Global Shippers-date.docx
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