Management Question

‫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 1
Business Ethics and Organization Social Responsibility (MGT
422)
Due Date: 01/03//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
•
•
•
•
•
•
•
•

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-2

Develop awareness and understanding of cultural and national differences related to ethics.

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.
Work with others effectively as a team member in business ethics research projects or case
studies.
Write coherent project about a case study or actual research about ethics

CLO-4
CLO-5
CLO-6

Case study
Scenario: The Layoff
Pat is the plant manager at one of ABC Company’s five plants. She has been with the company for 15
years and worked her way up from the factory floor after the company sponsored her college education.
Recently, her boss confided in her that the company will need to lay off 200 workers due to financial
difficulties. While her job is secure, rumors about potential layoffs are spreading within the plant.
One day, an employee who is also an old friend approaches Pat and asks, “Pat, is the plant shutting
down? Am I going to lose my job? My family and I are supposed to close on a new house next week,
and I need to know if I should back out.”
Pat now faces a serious ethical dilemma. If she tells the truth, she is betraying the company’s trust and
could face disciplinary action. However, if she remains silent or lies, she may be hurting her friend, who
could make a financial decision based on false assumptions.

Answer the following questions:
1. Should Pat prioritize loyalty to the company or honesty to her friend? Why? (2.5 Marks)
2. Who are the key stakeholders in this situation, and how might they be affected by Pat’s decision?
(2 marks)

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3. What are some alternative ways Pat could respond to her friend without violating company
policies? (2.5 Marks)
4. Apply the following ethical theories to analyze what Pat should do (3 mark):
a) Utilitarianism – What would be the best course of action based on maximizing overall benefits?
b) Deontology – What is Pat’s moral duty, regardless of consequences?
c) Virtue Ethics – What action aligns with Pat’s integrity and moral character?

Answers

1.
2.
3.
4.

Restricted – ‫مقيد‬

‫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 1
Business Ethics and Organization Social Responsibility (MGT
422)
Due Date: 01/03//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-2

Develop awareness and understanding of cultural and national differences related to ethics.

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.
Work with others effectively as a team member in business ethics research projects or case
studies.
Write coherent project about a case study or actual research about ethics

CLO-4
CLO-5
CLO-6

Case study
Scenario: The Layoff
Pat is the plant manager at one of ABC Company’s five plants. She has been with the company for 15
years and worked her way up from the factory floor after the company sponsored her college education.
Recently, her boss confided in her that the company will need to lay off 200 workers due to financial
difficulties. While her job is secure, rumors about potential layoffs are spreading within the plant.
One day, an employee who is also an old friend approaches Pat and asks, “Pat, is the plant shutting
down? Am I going to lose my job? My family and I are supposed to close on a new house next week,
and I need to know if I should back out.”
Pat now faces a serious ethical dilemma. If she tells the truth, she is betraying the company’s trust and
could face disciplinary action. However, if she remains silent or lies, she may be hurting her friend, who
could make a financial decision based on false assumptions.

Answer the following questions:
1. Should Pat prioritize loyalty to the company or honesty to her friend? Why? (2.5 Marks)
2. Who are the key stakeholders in this situation, and how might they be affected by Pat’s decision?
(2 marks)

Restricted – ‫مقيد‬

3. What are some alternative ways Pat could respond to her friend without violating company
policies? (2.5 Marks)
4. Apply the following ethical theories to analyze what Pat should do (3 mark):
a) Utilitarianism – What would be the best course of action based on maximizing overall benefits?
b) Deontology – What is Pat’s moral duty, regardless of consequences?
c) Virtue Ethics – What action aligns with Pat’s integrity and moral character?

Restricted – ‫مقيد‬

Answers

Q1. Pat’s ethical dilemma centers on the conflict between loyalty to her employer and honesty to her
friend. While loyalty to the company is often seen as a professional obligation, ethical frameworks
emphasize the importance of transparency and honesty in personal and professional relationships.
According to Kantian ethics, which prioritize duty and moral imperatives, Pat has a duty to treat her
friend with respect by providing truthful information (Kant, 1785). By withholding information about
potential layoffs, she risks causing her friend more harm in the long run. Furthermore, research indicates
that open communication can foster trust and reduce anxiety among employees, which could ultimately
benefit the company by promoting a more cohesive workplace culture (Bordia et al., 2006). While
disclosing sensitive information may violate company policy and lead to potential repercussions for Pat,
prioritizing honesty could empower her friend to make informed decisions regarding his family’s
financial future. Thus, Pat should consider advocating for transparency within the company, ensuring
that employees are informed before any layoffs are publicly discussed, thus balancing her loyalty to the
organization with her ethical responsibility to her friend.

Q2. The key stakeholders include Pat, her friend (the employee), other plant employees, management at
ABC Company, and the company itself. Pat’s decision directly impacts her friend, who is seeking clarity
to make an informed decision about his home purchase. If Pat chooses to be honest, she provides her
friend with critical information, potentially allowing him to make necessary financial adjustments.
However, this honesty could lead to disciplinary action against Pat, affecting her career and future
within the company (Trevino, 1986).
Other employees in the plant are also stakeholders; if Pat’s friend shares information about layoffs, it
could lead to increased anxiety and unrest among the workforce, further complicating the company’s
internal dynamics. Management at ABC Company is affected as well; a culture of transparency could
either enhance or undermine employee trust, influencing overall morale and productivity (Bordia et al.,
2006). Lastly, the company itself faces reputational risks depending on how layoffs are communicated.
Ultimately, Pat’s decision will ripple through these stakeholder groups, affecting relationships, trust, and
the overall work environment.

Q3. In this challenging situation, Pat can consider several alternative responses to her friend that
maintain her integrity while adhering to company policies:

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1. Encourage Open Communication: Pat could suggest that her friend speak directly with HR or
management about his concerns. This approach allows her friend to seek information without Pat
disclosing sensitive company details.
2. Express Empathy: Pat can acknowledge her friend’s anxiety and express understanding of his situation
without providing specific information about layoffs. This shows support while maintaining
confidentiality.
3. Generalize the Situation: Pat might discuss the general economic climate and how many companies
are facing challenges, which could help her friend understand the context without revealing specific
company plans.
4. Advocate for Transparency: Pat could suggest that the company should communicate openly with
employees about any potential changes. This could encourage a culture of transparency and trust within
the organization.
5. Offer Support: Pat can offer to help her friend explore options, such as financial advice or
contingency plans, without discussing the specifics of the layoffs.

By employing these strategies, Pat can navigate her ethical dilemma while protecting both her friend and
her professional responsibilities.

Q4. In analyzing Pat’s ethical dilemma through the lenses of utilitarianism, deontology, and virtue
ethics, we can derive different insights regarding her potential course of action.

a) Utilitarianism
From a utilitarian perspective, the best course of action for Pat would be to maximize overall benefits for
the greatest number of people. If Pat chooses to disclose the truth about the impending layoffs to her
friend, it could allow him to make informed decisions regarding his financial commitments, such as the
house purchase. This transparency could also foster a culture of trust within the plant, potentially leading
to better morale among employees who may be feeling anxious about their job security. However, if Pat
reveals this information, she risks her job and could create panic among employees, which might lead to
a decrease in productivity and overall morale. Therefore, the utilitarian approach would suggest that Pat
should weigh the potential benefits of honesty against the risks of workplace disruption, ultimately
advocating for a transparent communication strategy from management to address employee concerns
collectively (Mill, 1863).

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b) Deontology
From a deontological standpoint, Pat’s moral duty is to adhere to the principles of honesty and integrity,
regardless of the consequences. Kantian ethics emphasizes that individuals should act according to
maxims that can be universally applied (Kant, 1785). In this case, Pat has a duty to be truthful with her
friend, as lying or withholding information would violate her ethical obligation to treat others with
respect and honesty. Even if revealing the truth could lead to disciplinary action against her, the
deontological perspective would argue that Pat should prioritize her moral duty over potential negative
outcomes. This approach underscores the importance of maintaining ethical standards in all interactions,
regardless of the circumstances.

c) Virtue Ethics
Virtue ethics focuses on the character and integrity of the individual making the decision. In this
scenario, Pat should consider what action aligns with her values and moral character. As someone who
has built her career on trust and hard work, Pat’s integrity is paramount. A virtuous response would
involve demonstrating compassion and honesty towards her friend while also considering the broader
implications of her actions. By advocating for transparency within the company and supporting her
friend in seeking information, Pat can embody the virtues of honesty, loyalty, and empathy. This
approach not only reflects her character but also contributes to a positive workplace culture that values
ethical behavior (Aristotle, n.d.).

While each ethical theory offers a unique perspective, a balanced approach that incorporates elements
from all three—utilitarianism, deontology, and virtue ethics—may provide Pat with the best framework
for navigating her dilemma. By prioritizing honesty and advocating for open communication, Pat can
uphold her moral integrity while also considering the well-being of her friend and the broader
workforce.

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References

Bordia, P., Jones, E., Gallois, C., & Callan, V. J. (2006). Management is creating a culture of trust: The
role of communication. Journal of Managerial Psychology, 21(5), 412-422.
Kant, I. (1785). Groundwork for the Metaphysics of Morals. Cambridge University Press.
Trevino, L. K. (1986). Ethical decision making in organizations: A person-situation interactionist model.
Academy of Management Review, 11(3), 601-617.
Mill, J. S. (1863). Utilitarianism. Parker, Son, and Bourn.
Isenberg, A. (1964). Deontology and the Ethics of Lying. Philosophy and Phenomenological
Research, 24(4), 463-480.
Hursthouse, R. (2017). On virtue ethics. In Applied Ethics (pp. 29-35). Routledge.

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