Management Question

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫ر‬
‫اإللكتونية‬
‫الجامعة السعودية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Business Ethics and Organization Social Responsibility (MGT 422)
Due Date: 26/04/2025 @ 23:59

Course Name: Business Ethics and
Organization Social Responsibility
Course Code: MGT 422

Student’s Name:

Semester: 2nd

CRN:

Student’s ID Number:

Academic Year:2024-25-2nd

For Instructor’s Use only
Instructor’s Name:
Students’ Grade:

/10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
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Res
tric
ted
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The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
Learning Outcomes:
No

Course Learning Outcomes (CLOs)

CLO-1

Define a solid understanding of prominent theories of ethics and morality

CLO-3

Justify their rationale for decisions related to acceptable and unacceptable business conduct
based on the business ethics principles.
Illustrate the role of social responsibility in the functional areas and strategic processes of
business and a comprehensive framework for analyzing and resolving ethical issues and
dilemmas in an organization.

CLO-4

Short Answer Questions (Answer in 100–150 words each)
1. Explain the difference between primary and secondary stakeholders. Provide one example of
each and discuss why managing these relationships ethically is important for organizations. (2.5
marks)
2. Describe how product safety and advertising practices can present ethical dilemmas. Use the
concept of “due care” to support your answer. (2.5 marks)
3. Discuss the ethical challenges involved in employee downsizing. What responsibilities do
organizations have toward employees during such processes? (2.5 marks)
4. What ethical responsibilities do organizations have regarding the safety and well-being of their
employees? Provide an example of an ethical failure related to employee safety and discuss its
impact. (2.5 marks)

Res
tric
ted
–

Answers

1.
2.
3.
4.
5.

Res
tric
ted
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‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

College of Administrative and Financial Sciences

Assignment 3
Business Ethics and Organization Social Responsibility (MGT
422)
Due Date: 26/04/2025 @ 23:59

Course Name: Business Ethics and
Organization Social Responsibility
Course Code: MGT 422

Student’s Name: SEU ELITE

Semester: 2nd

CRN:

Student’s ID Number:

Academic Year:2024-25-2nd

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: /10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
•
•
•
•
•
•
•
•

Restricted – ‫مقيد‬

The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other
resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No
pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Learning Outcomes:
Learning Outcomes:
No

Course Learning Outcomes (CLOs)

CLO-1

Define a solid understanding of prominent theories of ethics and morality

CLO-3

Justify their rationale for decisions related to acceptable and unacceptable business conduct
based on the business ethics principles.
Illustrate the role of social responsibility in the functional areas and strategic processes of
business and a comprehensive framework for analyzing and resolving ethical issues and
dilemmas in an organization.

CLO-4

Short Answer Questions (Answer in 100–150 words each)
1. Explain the difference between primary and secondary stakeholders. Provide one example of
each and discuss why managing these relationships ethically is important for organizations. (2.5
marks)
2. Describe how product safety and advertising practices can present ethical dilemmas. Use the
concept of “due care” to support your answer. (2.5 marks)
3. Discuss the ethical challenges involved in employee downsizing. What responsibilities do
organizations have toward employees during such processes? (2.5 marks)
4. What ethical responsibilities do organizations have regarding the safety and well-being of their
employees? Provide an example of an ethical failure related to employee safety and discuss its
impact. (2.5 marks)

Restricted – ‫مقيد‬

Answers

1. Primary stakeholders are directly involved with or affected by an organization’s operations, such as
employees, customers, and investors. For example, employees depend on the organization for their
livelihoods. Secondary stakeholders, on the other hand, are indirectly impacted, such as community
groups, media, or environmental organizations. For example, a local community affected by a factory’s
pollution is a secondary stakeholder. Managing these relationships ethically is crucial because it fosters
trust, enhances reputation, and ensures long-term sustainability. Ethical management of stakeholders
helps organizations avoid conflicts, maintain compliance with regulations, and build positive
relationships that support mutual success. Ignoring stakeholder concerns can lead to reputational
damage, legal consequences, and financial losses.

2. Product safety and advertising can create ethical dilemmas when organizations prioritize profits over
consumer well-being. For example, releasing a product with known safety flaws to reduce costs or using
misleading advertising to manipulate consumers raises ethical concerns. The concept of “due care”
emphasizes the responsibility of businesses to take all reasonable precautions to ensure their products
are safe for consumers and to avoid harm. Failing to exercise due care, such as ignoring quality
standards or making deceptive claims, violates ethical principles and can lead to harm, loss of trust, and
legal consequences. Ethical advertising and product safety ensure transparency, protect consumers, and
maintain brand integrity.

Restricted – ‫مقيد‬

3. Employee downsizing poses ethical challenges as it directly impacts workers’ livelihoods and morale.
Organizations may face dilemmas balancing financial goals with employee welfare. Ethical issues
include lack of transparency, unfair selection processes, and inadequate support for displaced workers.
Employers have a responsibility to treat employees with dignity and fairness, offering severance
packages, career counseling, and adequate notice. Transparent communication about the reasons for
downsizing and efforts to minimize harm are also essential. Ethically managing downsizing not only
supports employees but also helps maintain organizational reputation and trust among remaining staff.

4. Organizations have an ethical responsibility to provide safe working conditions, comply with health
and safety regulations, and proactively address risks. They must foster a culture of safety and ensure
employees are well-trained and equipped to handle workplace hazards. An example of ethical failure is
the 2013 Rana Plaza collapse in Bangladesh, where poor building conditions led to over 1,100 deaths.
The incident highlighted negligence in ensuring workplace safety. Its impact included loss of lives,
reputational damage to associated brands, and increased scrutiny of supply chain practices. Ethical
commitment to employee safety prevents harm, boosts morale, and enhances organizational credibility.

Restricted – ‫مقيد‬

References
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach.
Boatright, J. R. (2017). Ethics and the Conduct of Business.
Werhane, P. H., & Freeman, R. E. (1996). Business Ethics: The State of the Art.
Hira, N., & Ferrante, J. (2014). Rana Plaza tragedy: Corporate responsibility and ethical implications.
Journal of Business Ethics.

Restricted – ‫مقيد‬

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