Research Work and Final Exam in MBA 202- Social Responsibility and Good Governance

Presented to Dr. Estrella Yu

Faculty of the School of Graduate Studies
St. Paul University Philippines

In Partial Fulfillment
Of the Course Requirement in
MBA 202- Social Responsibility and Good Governance

By

CHRISTIAN ROMAR H. DACANAY

2019
 CASE 1
1. Identify the issues Sophie has to resolve.
The following are some of the issues that Sophie needs to resolve:

 Her strange feelings about Emma and how Emma shows to her how she do things
considering the company’s policies on reporting expenses of sales persons
 Her fear and what ifs in not following the company policies
 Her issues, together with Emma whether they will file the correct report or whether she will
let Emma do its own tasks and Sophie files the correct report on her own.

2. Discuss the alternative for Sophie

Some of the alternatives Sophie have are the following, it may be right or wrong considering the
consequences, final decision lies on Sophie’s judgement. The alternatives are:
a. Sophie could submit a written memorandum stating and justifying the incurred extra
expenses and possibly readdress the layout of the report form through proper
discussion with the accounting department and site alternative ways and means on
how to present the extra expenses abiding accounting guidelines set forth by the
company.
b. Sophie could file her report in the same way as Emma does but still needs to
address accounting concerns after.
c. Sophie could file her report in the same way as Emma does and will not say anything
so that all her expenses be reimbursed as to not lose any money.
d. Sophie could report Emma and explain that the sales group does this because the
accounting department is not working with them to make changes or updates to the
report form, but this alternative could risk losing a job both for Sophie and Emma or
worst even the whole of the sales team.

3. What should Sophie do if company policy appears to conflict with the firm’s
corporate culture?
Sophie should look unto someone or a group of people as a source of inspiration in working.
Sophie should do what all other people in the company are doing especially those who have
kept their jobs for so long in the company. It is not worth getting fired over something that should
be done the right thing, right way and right time.
 CASE 2
1. If tracking employees through technology is not illegal, why should Megan be
concerned if she is not involved in any misconduct?
Megan was concerned even though she had no involvement in the misconduct is because
she has its own values and principles. Every individual has its own perspective or point of view
on different things, events or issues. A right or good for most may be disgusting to some. I can
say that Megan found that the tracking of employees outside of work hours to be morally
incorrect. She feels not so good about the fired employee who used the company’s car to drop
by his sick child in the hospital. Megan felt that the ethical reasons the company was claiming
could damage or effect the personal privacy rights as individuals. Megan sees the company’s
statement on their excellent ethical reputation a disparity to reality.

2. At this point, what are Megan’s alternatives to resolve her current dilemma about
her involvement and knowledge about GAC’s tracking of employees?
Possible alternative for Megan to resolve her current dilemma would be the following:

 Megan could have make deeper research and investigation, or became more familiar with
the company’s policies and procedures to find out the rationale of tracking employees in
order to make further conclusion and recommendation to make it ethical.
 Megan could also accept Debbie’s explanation, and just complete her work which is to
review the information and make recommendation and not to get involved on it.
 Megan could also disregard the advice of her superior and make proper report about the
company’s action to proper business regulatory agencies or to the government especially
those taking care of the welfare of employees. Possible consultation with the employees
association could be an alternative also.

3. Who should have a stake or an interest in how GAC tracks and monitors its
employees?
The stakeholders should be concerned about the company’s tracking and monitoring of
employees even after working hours. Stakeholders would include the company’s
shareholders, management, investors, the employees themselves, the government and the
general public as well. The management of the company have the obligation to be socially
responsible both to internal resources such as its manpower and to the external which is the
general public and the environment.
 CASE 3
1. Describe the nature of the organizational culture in the restaurant. What kind of
opportunities are there for unethical behaviour to occur? Are there any
opportunities for ethical behaviour?
The organizational culture in that restaurant is not professional and unhealthy which may
affect customer satisfaction and the company’s reputation as well as operations and productions
in the long run especially if not address earlier and properly resolve. Chances of unethical
behavior happens when the management team is off in the business premises. Employees
while working do unsanitary and unhealthy practices, they are not honest to their customers and
to the management as well, they behave unprofessionally during work hours, laughing and
teasing and making fun is where most of their time goes when management is out. The
workplace is not organize and disrespect to the managers by mocking at them. It can be
concluded that perhaps the main concern of the restaurant is to manage time especially in
catering the needs of the customers without thinking of the quality and safety of the food they
serve. Though ethical policies and standards are set, the lack of direct supervision of the
management and the hands on oversight in the operations of the restaurant is needed. The
management and supervisor should be the role model, and strictly implement the guidelines and
ethical policies of the company as well as thinking of setting quality and safety standards in the
operation is needed in order to deliver clean and good products to customers. The company
should be thinking also in making changes in the hiring policies in order to have more qualified
employees possessing good character in the workplace.
2. What are some of the incentives employees might have to engage in this type of
behaviour?
Some of the incentives employees might have to engage in this type of behavior is the
reward program. Perhaps it is on the company’s policy on awarding restaurant with the fastest
service that leads to the unethical behavior of the employees. These employees engage in
unethical behavior because they have no concern of expanding customer satisfaction by
providing quality and safe food. They focus more on providing food to customers at a fastest
time possible sacrificing quality and safety of it. The employees ignore the safety of their
products because of the incentive structure of the company base on the fastest delivery of food.
If and only if the company would change their policy and shift to giving incentives based on the
performance of employees in giving quality and safety food then the company might as well
resolve the unethical behavior of its employees.
3. If the organizational culture of the restaurant does not change, what are some
likely outcomes and consequences?
If the organizational structure of the restaurant does not change then customers that have
eaten their products in this restaurant are likely to fall sick, and the worst will suffer from food
poisoning. In this case, customers could file a lawsuit against the company. If this happens, then
the company would lose its brand name and reputation, stakeholders will suffer from various
effects of it, decrease in profit may happen or lost in worse cases, employees will be affected,
local economy will be affected as well and the government will be alerted especially the health
department. If this happens then, closure is the fate of the restaurant
 CASE 4
1. Describe the ethical dilemma Jared faces.
The ethical dilemma that Jared faces is that if the DCC where he is a manager do not act to
clean up the river where it disposes its toxic waste residues from its factory which is the
company’s practice for many years would affect the river itself, the natural living resources in the
river and especially the health of the community wherein they draw their drinking water in the
river and it would also affects their livelihood since catch from fishing has decrease in past
years. Cleaning up the river needs a lot of financial outflow from the company and would affect
its operation and the over-all performance of the company. If it would not clean the river,
possible risks may be experienced and despite being aware of its hazardous effects to the
community it is technically unethical.
2. How does Jonathan rationalize his reasons for not reporting the pollution?
Jonathan had many reasons to stay out of the pollution issue. He has able to protect his
reasoning for not reporting the disposal of waste into the river and the pollution to it because of
the following:

 DCC is a foreign company and cleaning up the river would a signaling indication of the
disposal they make and would result to possible lawsuit and heavy fines from the Chinese
government.
 There are other factories near the area who is also throwing their waste in the river, and
cleaning the river would include cleaning the waste of other companies and would just
keep pumping their waste into the river.
 Cleaning the river would cost millions and it requires a long period of time to accomplish it
as well. And water pollution in China is not a major social issue and less attention is given.

3. How might the water pollution impact different stakeholders?

The water pollution could affect stakeholders in many different ways. Stakeholders are anyone
who has an interest in the company or organization. Companies who are involved in water
pollution may affect its reputation and would alarm its stakeholders if this happens. Possible
impact on the stakeholders would be:

 For the Stockholders/Owners may face political risks and financial risks if the pollution the
company does would reach the government and the public information.
 For the Employees of the Company may lose jobs if the unethical works of the company
would lead to the business closure.
 For the Customers who are perhaps the locals near the river may lose livelihood due to
pollution, it decreases the catch for fish, this would result eventually to lower income from
the people and less customers for the company.
 For the Local Community their health may be at risk, especially for sourcing their drinking
water from the river and the other food they get from it.
 For the Government pollution is a social issue that should be addressed and regulated, or
possibly be stop especially for the environmental advocates. Implement the law strictly on
pollution and on disposal of waste of the private companies and factories.
 CASE 5
1. How does managing ethical risk in the oil and gas industry relate to reducing
accidents?
Oil and gas industries are one of the business sectors that should have a strict compliance
with environmental regulations since their operations primarily involve the depletion and use of
natural resources. Managing ethical risks relates to this industry by first keeping the
environment and the natural resources, as well as the safety of the general public particularly
local communities at the highest and safest level. By doing so, it will reduce possible incidents
that may cause damage to natural resources, destruction to wildlife and others such as oil spill
as to this case. Keeping safe the environment will not only bring more profit and good image to
the company, but also affects the local communities and the public, including all stakeholders to
the company. This could avoid also possible damage to the company’s reputation, public
complains and criticisms and government interventions and possible lawsuits to further deal
with.
2. Compare the risks that BP, Exxon, and the fracking industry continue to face in
providing an adequate supply of energy?
Both companies will be at a total risk of loss in profit, shutting down operations, facing
possible lawsuits and complains, and possible closure of the business. Other than those, they
will also have to deal with supervising recovery and clean-up operations, loss of customers and
revenue, government intervention particularly the environment department. Also, both will deal
with political risk and financial risk. Public complains will pressure them, coast guards will
monitor their clean-up operations. Moreover, the financial resources allocated for the recovery
and clean-up could have been avoided.
3. How can ethical leadership help the oil and gas industry to manage risk?
Ethical leadership can help risk management by working closely with other environmental
risk organization, the government offices on environmental protection and even with the local
community where operations are on-going. Possible application and certification with the ISO
14001 or the Environmental Management System is a great help in managing operations in
relation to taking care of the environment. Managing a trustworthy company that faces big
challenges responsibly is highly beneficial in gaining the trust and loyalty of the stakeholders
and the public in general. Moreover, holding top management accountable and responsible for
their roles for situations as such will be greatly beneficial for any business organization.
 ESSAY

1. You are aware that a fellow employee uses drugs in the job. Another friend
encourages you to confront the person instead of informing the supervisor. What
do you do?
Possible ways for me to help the company and my colleague into such situations, is that,
first, I would get to the right authority or people concerned in that cases to solve the problem
that is to report the matter to the employee assistance. Many companies and organizations
nowadays have policies, guidelines and programs on maintaining a drug-free workplace, with
the aim of protecting the image of the organization and of course, safe guard the welfare and
health of its employees. I would also speak privately to the alleged user and encourage him to
get help with my assistance.
2. You work for a company that has implemented a policy of a smoke-free
environment. You discover employees smoking in the restrooms of the building.
You also smoke and don’t like having to go outside to do it. What do you do?
What will I do is to invite or encourage the other employees who also smoke to do smoking
in the smoking designated area of the building. It is one way of satisfying my smoking vice and
following the company’s policies. For the company possible ways is to strictly implement the
policies on smoke free environment and also find ways to designate an area for smoking so that
it would not induce complains to smoker employees. Forums, learning sessions, health advisory
and advocacy on the negative effect of smoking could be done by the company particularly the
HR department so that employees will be informed and to reduce the number of employees
smoking.
3. Your co-worker is copying the company purchased software and taking it home.
You know of a certain program cost $400 and you have been saving for a while to
buy it. What do you do?
I would tell him that what he is doing is a crime and it may be discovered by the company’s
technology department or by other employees and it may reach the management. Cheating
and/or stealing intellectual properties are against the law and it is a crime and he/she should be
informed and be aware about it. In my part, I will not also copy just what he is doing. I should
think that every work or plans counts and it must be achieve thru hard work and patience not in
an instant.
4. For several months now, one of your colleagues has been slacking off and you
are getting stuck doing the work. You think it is unfair. What do you do?
I will probably discuss the problem with some of my colleagues with the intention to solve
the problem being encountered in the workplace. If proper discussion is still not effective, then
the possibility of endorsing the concern to the management is my best way to do it. I would go to
the supervisor and tell the real situation. It brings to the attention of the management the poor
work ethics and performance of my colleague and it will also give me a venue to properly
expand my activities concerning my job because if you are in such situations accomplishments
of an individual would definitely little. If other else don’t work, then my last option would be to
take the situation into its positive side, it is recognizing it as an opportunity for me to
demonstrate my capabilities in the job.
 FINAL EXAMINATION
1. What led to the collapse of Enron under Lay and Skilling?
All the fraud activities conducted by Lay and Skilling and all other top management
officer of the company and the bad corporate culture led to the eventual collapse of Enron.
Enron collapsed not so much because it gotten too large that it couldn’t be controllable but
because of greed, they perceived itself to be much larger that it was. The top officers were
aware of the Enron Code of Ethics but they did not follow nor comply about it. Fraudulent
activities and criminal acts has been so prevalent in the entire company. Activities as such will
never bring any organization to success.
2. How did the top leadership at Enron undermine the foundational values of the Enron
Code of Ethics?
Enron executives who forced company to bankruptcy were found guilty after the
shutdown of the business. They were engaged in money laundering, fraud and conspiracy.
Enron’s leadership and management undermine the express code of ethic of the company such
as respect, integrity, communication and excellence. It was facilitated by a corporate culture that
encouraged greed and fraud. Management focus on maintaining the appearance of value and
the money they could make in any means they can have and forgetting about focusing on
building up the real value of the company.
3. Given Kenneth Lay’s and Jeff Skilling’s operating beliefs and the Enron Code of
Ethics, what expectations regarding ethical decisions and actions should Enron’s
employees reasonably have had?
Enron employees must had considered that the top management are not concerned
about the business ethics since they themselves were doing unethical activities. The employees
get into a sense of freedom for doing unethical activities since top management are doing it in
the first place. No value and significance has been regarded by the employees and
management or in general the whole company to its Enron Code of Ethics.
4. How did Enron’s corporate culture promote unethical decisions and actions?
Enron employees believed that they could deal with unethical activities without any
danger or risk until they don’t get caught. The corporate culture and values took very lenient and
took very less efforts to promote the code of ethics of the company. The company focused more
on decentralization and there were inadequate operational and financial controls.
5. How did the investment banking community contribute to the ethical collapse of
Enron?
Enron was engaged itself with highly refuted firms in the industry. The company become
the star of the Wall Street and it was able to loan almost endlessly from various firms and made
questionable expansions and ventures. The financial value of the company soared very high
and employee’s compensation have become very attractive. Eventually, but what were already
regarded as acceptable revealed to be outright fraudulent. The disgrace drove the firms and the
industry away from and created such borrowings that it has to forced it out of the industry.