Reference no: EM133052688
Case Study: Zodiac Inc
While attending university, Carl and Leah developed software as a class project. The software was intended to improve the efficiency and effectiveness of government's management of social welfare programmes, resulting in persons needing these programmes being able to access and benefit from them in a timely way. They received an A+ for their project and first prize in a software development competition.
On leaving university with their degrees in Computer Software Engineering, Carl and Leah were looking for jobs in the industry with little success in the hard economic climate. They were discussing their challenges and decided that they should try to make their own way using their efficiency software as a first step.
They formed the company Zodiac Inc. and three years later they are one of the top emerging technology firms in the country and the region. In addition to licensing their efficiency software to their Government, they have coded other specialty software for clients and launched a very successful online virtual reality game. They have also developed the organization where they share CEO responsibilities and have a staff of developers and coders and have a Marketing Executive, Joe, who is responsible for seeking out and developing opportunities.
In a meeting to discuss Zodiac's performance and prospects, they learn that Joe had made an arrangement with the Government of another country to provide a modified version of the efficiency software that got the company started. The purchasing agent for the government had indicated that there were other bidders but he could ensure that Zodiac got the contract providing they reduced the final price by paying him personally back 20% of their asking price. Leah and Carl were very concerned about this, and the Accountant confirmed that the payment to the purchasing agent had been processed as requested by Joe so he was good to go on completing the contract.
After the meeting Leah and Carl met alone and Leah expressed her reservations about the arrangement made by Joe. Carl said he felt that it may not be right or in keeping with the company philosophy. They have strived to build an environment of honesty and integrity, teamwork, and respect as a result of which they are well regarded by customers. Further, staff are allowed to operate with a level of trust and independence.
This would be their second licensing arrangement to another government and could be important for the Zodiac's future growth. It would also allow those in need to have timely access to services and benefits and the government agencies to operate more efficiently. Given their concerns, they approached a friend who is an attorney to seek his advice on whether there is validity to them being concerned about the deal and whether they should proceed with it or withdraw.
Questions
1. Identify and discuss the ethical issue(s) being faced by the business.
2. Should Zodiac Inc. proceed with the contract or not? Justify your answer based on the utility to be gained or lost and with reference to other relevant ethical frameworks.