Reference no: EM131076988

UK Motors, the largest manufacturer of automobiles in the United Kingdom, has been famous for building reciprocating automobile engines that produce minimal noxious emissions. These so-called clean engines have generated numerous awards for the use of technology in cleaning up the environment for the United Kingdom. A supporter of automobile racing of all types, the company has long supplied engines built specifically for racing, in particular for NASCAR, Formula 1, and Indy car competitions. This year, engineers at UK Motors have produced a racing engine that because of the removal of emission protection elements costs 46% less than the old engine. Mass production of the new engine for installation in the automobiles made for the consumer market will save UK Motors nearly a thousand dollars per unit in manufacturing costs. Some members of the management team at UK Motors motivated solely by profit potential want the "new" engine produced and sold immediately. Based on data that constitutes verifiable past performance, it is estimated that in the current sales year, the new engine would be sold in over 3 million vehicles, all of which would reach the market at a substantially low production cost to the company. Other company stakeholders take the opposite view and argue that the company would be acting dishonestly by selling the highly profitable "new" engine without revealing how much pollution these engines will be producing. This group of company stakeholders is concerned about ethics and deceptive sales practices and opposes any sale of the so-called new engine.

How the new project development affects the key stakeholders? Which group of stakeholders should prevail: The one that wants to sell the engine now (those motivated solely by profit), or the one concerned about ethics, honesty, and company reputation? Why?