Ethics Case Study 2

Case Study 2:-

Ratan is a farmer who grew sugar-cane on his two acres irrigated land and had borrowed Money from a private bank to buy a tractor. He bought the tractor from the money he had received from bank loan but, also used part of the money to pay dowry and expenses for his daughter’s wedding. Due to price drop in sugar cane in the market, he consistently defaulted on his bank loan. Fortunately he owned irrigated land and he was confident of repaying the debt within two years if the price of sugar cane improved. The bank authorities had sent him few notices and decided to publish the photographs of defaulters in the public places and in local newspaper to put pressure on them. Ratan, who was a respected individual in his village was shocked to know this and committed suicide.

After few days, the bank auctioned his tractor off too. Now, Ratan’s wife and children have complained against the bank to the police accusing it of killing Ratan.

1) Was it ethical for the bank to take a decision to publish photographs of loan defaulters? Explain. (150 Words)

2) Critically comment on ethical aspects of Ratan’s deeds. (250 Words)

Solution:-

PART-1

“Commerce without morality” is one of the deadly sin said by Gandhiji . It this case ethical and moral nature of banks nature can be seen in different context. It is known as ethical relativism

When seen from perspective of Ratan. Firstly he is not a will full defaulter even though a part of loan is used for dowry for his daughter. This tells unethical and immoral social customs drive them into POVERTY. Secondly sudden drop of sugarcane prices which may be because of ineffective governance structures or a effect of Globalization/”>Globalization-3/”>Globalization. This shows how government and markets if not behave morally responsible would have dire consequences on poor. So Ratan may not be directly responsible for non-payment of loan. So taking action against him seems like unethical in nature.
When seen in perspective of bank. It is guided by statutory guidelines which say this action is legal. Law acts same for everyone small or big lender. But social reality is beyond law. There is need to have Empathy, sensitivity especially when dealing with vulnerable sections. Bifocal vision is needed in actions where both bank and Ratan are not on losing side. Banks must have helped Ratan in financial management which would have helped him in clearing loan. Even though it may not be illegal from banks point of view it is unethical to publish photograph without exploring other Options. It should also be seen banks know this would result in Ratan’s suicide

PART-2

As mentioned in PART-1 deeds of Ratan are so because of unethical customs of Society, morally irresponsible and unaccountable government and markets Ratan was placed in such dilemma. Ratan suicide is not because of his economic position it was because of fear of losing prestige. Ratan even ignored his personal relations with his wife and children. This shows there is more importance given to social prestige rather than personal relations. This shows how Ratan was socialized and values he learnt from his parents, Education and society. Any act of suicide is not a solution to problem, so what is done by Ratan is unethical when seen from perspective of his family.

When seen from point of view of Ratanyou can say it as normal act in a unethical society. Which means society itself is unethical in nature and he wanted to escape from these hardships.,

Introduction

Ethics is a branch of philosophy that deals with morality and the principles of right and wrong. It is concerned with the study of what is good and bad, and how we should live our lives. Ethics can be applied to a wide range of issues, including business, politics, and personal relationships.

In the business world, ethics is often concerned with issues such as honesty, fairness, and respect. Businesses are expected to act ethically in their dealings with customers, employees, shareholders, and the Environment. When businesses fail to act ethically, they can face a number of consequences, including damage to their reputation, legal action, and loss of customers.

The Case

The case of the Ford Pinto is a well-known example of an ethical dilemma in the business world. In the 1970s, Ford Motor Company designed and manufactured the Pinto, a subcompact car. The Pinto was designed to be a fuel-efficient car that would appeal to consumers who were concerned about the rising cost of gasoline. However, the Pinto had a design flaw that made it prone to fires in the event of a rear-end collision.

Ford was aware of the design flaw, but it decided to produce the Pinto anyway. The company calculated that it would be cheaper to pay out damages in lawsuits than to recall and fix the Pinto. As a result, hundreds of people were killed or injured in Pinto fires.

The Pinto case raises a number of ethical questions. Was it ethical for Ford to produce a car that it knew was dangerous? Was it ethical for Ford to put profits ahead of safety? What are the responsibilities of businesses to their customers?

Analysis

There are a number of different ethical theories that can be applied to the Pinto case. One theory is utilitarianism, which holds that the right action is the one that produces the greatest good for the greatest number of people. According to this theory, Ford’s decision to produce the Pinto was unethical because it put the profits of a few people ahead of the safety of many people.

Another theory is deontology, which holds that the right action is the one that is in accordance with duty or obligation. According to this theory, Ford’s decision to produce the Pinto was unethical because it violated the duty to protect human life.

A third theory is virtue ethics, which holds that the right action is the one that is consistent with the virtues of a good person. According to this theory, Ford’s decision to produce the Pinto was unethical because it was not consistent with the virtue of Justice.

Conclusion

The Pinto case is a complex ethical dilemma. There are a number of different ethical theories that can be applied to the case, and there is no easy answer to the question of whether Ford’s decision to produce the Pinto was ethical. However, the case raises important questions about the responsibilities of businesses to their customers and the role of ethics in the business world.

Recommendations

In Light of the ethical issues raised by the Pinto case, it is important for businesses to have clear and well-defined ethical standards. Businesses should also have a process in place for employees to raise ethical concerns. In addition, businesses should be prepared to take action to address ethical issues, even if it means sacrificing profits.

Here are some frequently asked questions about ethics in the workplace, with short answers:

What is ethics in the workplace?
Ethics in the workplace is a set of principles that guide how people behave in the workplace. These principles can be based on personal values, company policies, or laws.
Why is ethics important in the workplace?
Ethics is important in the workplace because it helps to create a positive and productive work environment. When employees feel that they are working in an ethical environment, they are more likely to be happy and productive.
What are some examples of ethical behavior in the workplace?
Some examples of ethical behavior in the workplace include:
Being honest and truthful
Respecting others
Being fair and impartial
Acting in the best interests of the company
Avoiding conflicts of interest
What are some examples of unethical behavior in the workplace?
Some examples of unethical behavior in the workplace include:
Lying
Cheating
Stealing
Harassment
Discrimination
Bullying
What can I do if I see unethical behavior in the workplace?
If you see unethical behavior in the workplace, you should report it to your supervisor or another appropriate person. You should also document the incident, including the date, time, and what happened.
What are the consequences of unethical behavior in the workplace?
The consequences of unethical behavior in the workplace can be serious, both for the individual who engages in the behavior and for the company. Unethical behavior can lead to disciplinary action, including termination, and it can also damage the company’s reputation.
How can I promote ethics in the workplace?
There are a number of things you can do to promote ethics in the workplace, including:
Set a good example
Be clear about your expectations
Provide training on ethics
Create a culture of openness and trust
Encourage employees to speak up if they see something wrong
What are some Resources for Learning more about ethics in the workplace?
There are a number of resources available for learning more about ethics in the workplace, including:
The Society for Human Resource Management (SHRM)
The Ethics Resource Center
The Institute for Business Ethics
The Ethics and Compliance Initiative

Which of the following is not a principle of ethics?
(A) Autonomy
(B) Beneficence
(C) Non-maleficence
(D) Justice
Which of the following is not a type of ethical dilemma?
(A) Conflict of interest
(B) Allocation of scarce resources
(C) Whistleblowing
(D) Ethics case study
Which of the following is not a factor to consider when making an ethical decision?
(A) The consequences of the decision
(B) The rights of the involved parties
(C) The laws and regulations that apply
(D) The personal beliefs of the decision-maker
Which of the following is not a way to resolve an ethical dilemma?
(A) Consult with an ethics expert
(B) Make a decision based on your personal beliefs
(C) Consider the consequences of the decision
(D) Follow the law
Which of the following is not a characteristic of a good ethical decision?
(A) It is based on Sound reasoning
(B) It is consistent with the principles of ethics
(C) It is made in good faith
(D) It is made without considering the consequences
Which of the following is not a way to promote ethical behavior in the workplace?
(A) Create a Code of ethics
(B) Provide training on ethics
(C) Set a good example
(D) Discipline employees who violate the code of ethics
Which of the following is not a way to protect yourself from ethical misconduct?
(A) Be aware of the ethical issues in your field
(B) Ask for help when you are unsure of the right thing to do
(C) Document your decisions
(D) Keep your personal beliefs out of your work
Which of the following is not a way to report ethical misconduct?
(A) Talk to your supervisor
(B) Talk to a human resources representative
(C) Talk to an ethics officer
(D) Talk to a lawyer
Which of the following is not a way to resolve an ethical conflict?
(A) Talk to the person with whom you are in conflict
(B) Talk to a mediator
(C) Talk to a lawyer
(D) Ignore the conflict
Which of the following is not a way to promote ethical behavior in society?
(A) Create laws and regulations that promote ethical behavior
(B) Provide education on ethics
(C) Set a good example
(D) Discipline people who violate ethical standards