What are ethical and legal issues

Assignment Help Operation Management
Reference no: EM132875684

Karen Belamee faces a decision that could affect thousands of workers as well as herself. Since graduating from college, she has worked as an investment banker with the A.B. Phillips Company. Karen was just getting by until she convinced Don Jones, president of Narco Corporation, to give her some business. Jones has a reputation for acquiring companies and splitting them up for a profit. However, he is also a shrewd corporate raider who can see profit not only from raiding companies, but also from taking them over and turning them around. Thanks to Jones's business, Karen's yearly commissions have risen into six-digit figures.

About six months ago, Karen's father commented that the management team of his employer, Recreation Products, Inc., was running the company into the ground. Recreation Products manufactures sporting equipment and employs nearly 40 percent of the work force of the community in which it is located. Karen's father has worked for the company for more than 20 years. "If only someone could buy out Recreation Products and put in a good management team," he mused.

After her conversation with her father, Karen investigated Recreation Products and found that demand for its products was high but productivity was down because of the present management. She also found that the stock was grossly undervalued. Karen decided to tell Don Jones about Recreation Products. He quickly met with the union representatives of the company's workers, and together they worked out a plan to save the company and preserve thousands of jobs. Jones told the union, verbally, that the company would not be broken up. This pleased them and Karen, who had assured the union reps of Jones's sincere wish to save Recreation Products. In return, the union verbally agreed to concessions that would keep the company financially solvent.

Several weeks later, Karen overheard a conversation that disturbed her greatly. She discovered that Jones planned to break up Recreation Products, despite his pledge to her and the company's employees. This meant that thousands of employees would be laid off, just to increase the raider's short-term gains. This change in tactics would, in effect, destroy Karen's credibility with her coworkers, clients, and family.

Recently Karen met Derk Banacek, who seems interested in purchasing Recreation Products to turn it around. Karen must now decide between two alternatives. She can do nothing and let thousands of workers get laid off, or she can inform the union and cut a deal with Banacek to purchase Recreation Products stock. If she chooses to give this information to the unions, however, Karen could be charged with a breach of confidentiality, similar to insider trading.

Questions:

1. What are the ethical and legal issues?

2. What organizational and personal pressures have contributed to Karen's dilemma?

3. What should Karen do?

4. What Would You Do?

Reference no: EM132875684

Questions Cloud

Developed strategy de facto : What is an example of a firm or organization you know about, which, in your opinion, has developed a strategy de facto? Explain.
Describe e-hris and terminology usage : In this hypothetical situation, you work for a small to midsize company (over 50 employees) that currently outsources payroll functions only.
Recent development in relation to operations management : Defend arguments using effective teamwork; value diverse perspectives and skills; and deploy a variety of roles to accomplish team goals
Analyze the case from the perspective of pure contract law : Analyze the case from the perspective of PURE CONTRACT law (i.e. what you learned in this course so far about the elements of contract law etc.)
What are ethical and legal issues : What are the ethical and legal issues? What organizational and personal pressures have contributed to Karen's dilemma?
Write an autoethnographic vignette recounting personal : Write an autoethnographic vignette (min. 200 words) recounting your personal experience with precarious work. If you do not have first-hand experience
Discuss the four dimensions of statistical reasoning : For valid inferences about a diverse population, why isn't it more important to have a representative sample than a random sample?
What is the carrying amount of intangibles : The inventory and receivables are considered to be included above at their recoverable amounts. What is the carrying amount of intangibles
Best sources for compensation and benefits in organization : What are the three best sources for compensation and benefits in the organization that could help in a report writing?

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd