Ethics – Factors to Consider

Living by a code of ethics is not just important in daily living; it is just as important in the world of business.  As the manager of this heavy-equipment manufacturing company, I would take multiple things into account, research, and take multiple steps before making my decision.

            Research and evaluate the validity of the newspaper company and its story. If the story comes from a resource that is not credible, our company is less likely to face negative outcomes because of the story.  If the story comes from a credible source, then I would reach out to our legal and HR team to assist me in verifying what communication has taken place with the company to confirm the business measures the company is taking to address the issue.  The legal and HR team has the knowledge of what can legally be said to ensure our company, including me, is following protocol and keeping our company’s best interest in mind.       

            What is our company’s “Code of Ethics” policy?  I would review and confirm I have understanding of the company policy to ensure I abide by policy guidelines.  As a company, we want to ensure we are consistent with all business operations, including with third party companies. Maintaining positive business relations reflects on a company and can have a positive impact on how any company is seen by other companies, building potential business relations.  Terminating business relations, without solid research and cause, can equally hurt a company as much as keeping a business relation with a company that has lost its credibility because other corporations could perceive our company to not value business relations by making haste decisions without just cause.

            What is our company’s potential financial loss amount if we continue/discontinue business with this company? There are many variables involved in financial decision making.  Total financial loss has to be evaluated because the amount will be more than the 15%. Does our company have a contract with this company? I would confirm if a contract with the company existed because I would not want the company to suffer a loss due to termination of contract without providing upfront awareness of the potential loss. I would talk to our company’s financial analyst/s to assist in determining the loss our company faces.  Negative press/advertising can cause a company to lose customers which also means a loss of revenue. The analyst/s can provide different type of research for both aspects and help determine which would bring a bigger loss to the company, maintaining business relations versus terminating business relations. Is a backup plan in place? A company suffers when there is no production. If I do not have another supplier lined up, our company still faces loss because we will not be able to produce the equipment without this specialized piece of equipment.  Gathering this data will help in putting together a well-researched report to present to the CEO.  

Conclusion

            If the article presented from a valid source, my recommendation would be to terminate business with this company due to the potential losses our company would face because of the negative publicity.  I would also be prepared with a backup plan to ensure our company was able to continue production.  Providing the CEO with research, would demonstrate my recommendation was based on valid data and information.