Cost Justified

Cost Justified Managers face many challenges in the day to Day operations of their business. Often times some of the greatest challenges come from within their own ranks, as superior managers use their position and influence to coerce one to make decisions or commit acts that are sometimes on the boundaries of the law and often cross the ethical line. In the case of “Cost Justified,” we are introduced to Joe, the District Manager of Computer Operations for a large company. Joe is confronted with an ethical dilemma when he is confronted by is superior, Mary, and instructed to perform and unethical act.

This paper will examine this case from an ethical and legal perspective and identify the stakeholders and their interest and help Joe conclude that he can live with. We are introduced to Joe as he is being instructed to prepare false and misleading documents ensuring a fellow co-worker that their computer system is performing up to required and expected parameters. Joe knows from his own experience that there is a problem with the computer system. Mary, his superior and Division Manger for Information Systems, instructs Joe to falsify documents to the contrary.

This directive does not sit well with Joe and he is not sure what to do. First up is identifying the stakeholders. While we are given no reference as to the number of employees working for this company, we know that it is a large company. The stakeholders include the employees that work there, their clients that are served by the company all vendors, suppliers, business associates and fellow companies in the same industry. There interests are many and varied for a company of this size. We can suffice to say that if it is of interest to the company, then it is of interest to the stakeholders.

If they are given a computer system that does not perform as they need it to then worker performance and productivity can decrease, causing the company to lose money. If the company loses money, they may attempt to save money by releasing employees they deem unproductive. The employees, however, would be blamed for shortcomings that can be traced back to the computer system. However immoral or unethical, Mary’s behavior appears; she has not broken any laws. We are not given any information from the computer company, so we cannot say if they advertised the system to perform in any particular way.

Therefore, from this standpoint, there is no violation of product liability or of the Universal Commercial Code. There is no guarantee of performance given about the computer system. However, we will not end our analysis here; we will also evaluate this case by applying ethical considerations. Joe is in the clear from any ethical violations in this case. Mary, however, is another story altogether. She is fully aware of Joe’s concerns in regards to the performance of the computer system and she has chosen to ignore those concerns.

In her response to Joe, she has questioned whether Joe can handle his responsibilities as District Manager, a direct threat to his employment with the company. There would be many benefits to the company if the computer performed up to specifications and saved the company money. In this case, however, it does not and the ends do not justify the means, so from a utilitarian theory, Mary is unethical and wrong. An analysis under the theory of rights suggest that many of the stakeholder’s inalienable rights are being violated, especially Joe’s.

Therefore, from this analysis, Mary is again unethical and wrong. An analysis under the justice theory would have to determine if any actions were just and fair to all involved. Clearly, there is nothing just or fair about Mary’s actions, including her attempt to threaten Joe’s position with the company. Therefore, from this analysis, Mary’s actions are unethical and wrong. Finally yet importantly, an analysis from the categorical imperative theory, if everyone could adopt Mary’s behavior and misrepresent the truth, then her decision would be right.

However, in this case, Mary’s behavior cannot be accepted because the means do not justify the end. In closing, managers face many challenges in the day to Day operations of their business. Often times some of the greatest challenges come from within their own ranks, as superior managers use their position and influence to coerce one to make decisions or commit acts that are sometimes on the boundaries of the law and often cross the ethical line. Joe must make a decision for, not only himself, but for his fellow employees and fellow stakeholders who will be affected by his decision to go along with Mary’s deception.

Joe has to choose if he should go above Mary and support the findings of the anonymous employee and report Mary and the faulty computer to the President and CEO, or succumb to Mary’s pressure to save his job. It is not an envious position to be in for sure. Joe must decide if he wants to be a conscientious, ethical District manager, or a lackey for Mary.