Business Ethics

This essay has a total of 2346 words and 8 pages.

Business Ethics

Business Ethics Ethics in Business From a business perspective, working under government
contracts can be a very lucrative proposition. In general, a stream of orders keep coming
in, revenue increases and the company grows in the aggregate. The obvious downfalls to
working in this manner is both higher quality expected as well as the extensive research
and documentation required for government contracts. If a part fails to perform correctly
it can cause minor glitches as well as problems that can carry serious repercussions, such
as in the National Semiconductor case. When both the culpable component and company are
found, the question arises of how extensive these repercussions should be. Is the company
as an entity liable or do you look into individual employees within that company? From an
ethical perspective one would have to look at the mitigating factors of both the employees
and their superiors along with the role of others in the failure of these components. Next
you would have to analyze the final ruling from a corporate perspective and then we must
examine the macro issue of corporate responsibility in order to attempt to find a
resolution for cases like these. The first mitigating factor involved in the National
Semiconductor case is the uncertainty, on the part of the employees, on the duties that
they were assigned. It is plausible that during the testing procedure, an employee couldnt
distinguish which parts they were to test under government standards and commercial
standards. In some cases they might have even been misinformed on the final consumers of
the products that they tested. In fact, ignorance on the part of the employees would fully
excuse them from any moral responsibility for any damage that may result from their work.
Whether it is decided that an employees is fully excused, or is given some moral
responsibility, would have to be looked at on an individual basis. The second mitigating
factor is the duress or threats that an employee might suffer if they do not follow
through with their assignment. After the bogus testing was completed in the National
Semiconductor labs, the documentation department also had to falsify documents stating
that the parts had surpassed the governmental testing standards. From a legal and ethical
standpoint, both the testers and the writers of the reports were merely acting as agents
on direct orders from a superior. This was also the case when the plant in Singapore
refused to falsify the documents and were later falsified by the employees at the have
California plant before being submitted to the approval committees (Velazquez, 53). The
writers of the reports were well aware of the situation yet they acted in this manner on
the instruction of a supervisor. Acting in an ethical manner becomes a secondary priority
in this type of environment. As stated by Alan Reder, . . . if they [the employees] feel
they will suffer retribution, if they report a problem, they arent too likely to open
their mouths. (113). The workers knew that if the reports were not falsified they would
come under questioning and perhaps their employment would go into jeopardy. Although
working under these conditions does not fully excuse an employees from moral fault, it
does start the divulging process for determining the order of the chain of command of
superiors and it helps to narrow down the person or department that issued the original
request for the unethical acts. The third mitigating factor is one that perhaps
encompasses the majority of the employees in the National Semiconductor case. We have to
balance the direct involvement that each employee had with the defective parts. Thus, it
has to be made clear that many of the employees did not have a direct duty with the
testing departments or with the parts that eventually failed. Even employees, or
sub-contractors, that were directly involved with the production were not aware of the
incompetence on the part of the testing department. For example, the electrical engineer
that designed the defective computer chip could act in good faith that it would be tested
to ensure that it did indeed meet the required government endurance tests. Also, for the
employees that handled the part after the testing process, they were dealing with what
they believed to be a component that met every governmental standard. If it was not tested
properly, and did eventually fail, isnt the testing department more morally responsible
than the designer or the assembly line worker that was in charge of installing the chip?
Plus, in large corporations there may be several testing departments and is some cases one
may be held more responsible than another depending on their involvement. A process like
this can serve the dual purpose of finding irresponsible employees as well as those that
are morally excused. The fourth mitigating factor in cases of this nature is the gauging
of the seriousness of the fault or error caused by this product. Since National
Semiconductor was repeatedly being reinstated to the listed of approved government
contractors, one can safely assume that the level of seriousness, in the opinion of For
the contractor approval committees, is not of monumental importance. Yet one has to wonder
how this case would have been different if the lack of testing did cause the loss of life
in either a domestic or foreign military setting. Perhaps the repercussions would have
come faster much more stringent. The fact that National Semiconductor did not cause a
death does not make them a safe company. They are still to be held responsible for any
errors that their products cause, no matter the magnitude. As for the opposition to the
delegating of moral responsibility, mitigating factors and excusing factors, they would
argue that the entity of the corporation as a whole should be held responsible. The
executives within a corporation should not be forced to bring out all of the employees
responsible into a public forum. A company should be reprimanded and be left alone to
carry out its own internal investigation and repercussions. From a business law
perspective this is the ideal case since a corporation is defined as being a separate
legal entity. Furthermore, the opposition would argue that this resolution would benefit
both the company and the government since it would not inconvenience either party. The
original resolution in the National Semiconductor case was along these lines. The
government permanently removed National from its approved contractors list and then
National set out to untangle the web of culpability within its own confines. This allowed
a relatively quick resolution as well as the ideal scenario for National Semiconductor. In
response, one could argue that the entity of a corporation has no morals or even a concept
of the word, it is only as moral and ethical as the employees that work in that entity.
All of the employees, including top ranking executives are working towards advancing the
entity known as their corporation (Capitman, 117). All employees, including the
sub-contractors and assembly line workers, are in some part morally responsible because
they should have been clear on their employment duties and they all should have been aware
of which parts were intended for government use. Ambiguity is not an excusing factor of
moral responsibility for the workers. Also, the fact that some employees failed to act in
an ethical manner gives even more moral responsibility to that employee. While some are
definitely more morally responsible than others, every employee has some burden of weight
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