Daniel Josef M. Aloroy                                                                                                                           1.24.08

ITETHIC                                                                                                                                                 O0B

Book Review on Business Ethics A Global and Managerial Perspective

By David J. Fritzsche HF 5387 F75 1997a

Chapter 2: THE IMPORTANCE OF ETHICS IN BUSINESS

On December 20, 1994, Intel announced that it would replace all flawed Pentium chips with no questions asked. In the news release, Andy Grove stated:

                 ..we are today announcing a no-questions-asked return policy on the current versions of the Pentium processor. Our previous policy was to talk with users to determine whether their needs required replacement of the processor. To some people, this policy seemed arrogant and uncaring. We apologize. We were motivated by a belief that replacement is simply unnecessary for most people. We still feel that way but we are changing our policy because we want there to be no doubt that we stand behind this product.

                It was kind of interesting that even the biggest manufacturer of processors can make unethical mistakes that would be concerning the trust of their customers to them. I am sure that Intel felt very humiliated therefore they looked for ways on how to cope with the tens of thousands of customer calls requesting for exchange of their products. They would have to make a very big step in order to fully satisfy the growing needs of customers. Here in the Philippines, the Department of Trade and Industry does not tolerate the policy of “No return, no exchange” in some malls. It is required though, to present the official receipt that would verify the sales of that particular product the customer wishes to return or exchange. I am sure that at the present, Intel already learned their lesson from what happened that time so they had improved the quality of microprocessors installed on the computers.

Chapter 7: ETHICS IN PRACTICE

HP advocates employee sharing of benefits and responsibilities. Equal sharing of rewards through a profit-sharing plan and a stock-purchase plan is stressed. Offices are generally the same size, with supervisors sharing offices with their secretaries. Carpeting is a rarity and parking spaces are generally unassigned. The company fosters a sense of teamwork and partnership in its everyday business operations. Decisions are generally made through consensus and persuasion in small work groups...HP demonstrates a strong concern for the individual employee. It has gone to great lengths to avoid layoffs.

                With a warm and close-knitted relationship among employees in an organization, I am sure that it would be very pleasant to work and interact with them, especially with an equal treatment to each and every worker. One would not feel isolated at work whether he holds a higher or lower position in the company. Teamwork definitely gives them the edge to work on their jobs because it by then it will be easier for all them to finish a particular job. Everybody is making sure that nobody is left behind regarding the decision-making process and in communicating the latest updates and programs for the company. Employees will enjoy greater benefits if they are well compensated and at the same time, they have a feeling of security and sense of belongingness to the company.

Chapter 3: MORAL STANDARDS

According to the utilitarian principle, a decision is ethical if it provides greater net utility than any other alternative decision. Thus the decision maker must evaluate each decision alternative, determine the negative and positive utilities arising from the alternative, and then select the one that yields the greatest net utility. You probably recognize this as a type of cost-benefit analysis where the costs and benefits of all stakeholders are considered. A decision based on the utilitarian principle is ethical if it produces the greatest good for the greatest number. Anything less is wanting.

                This is somewhat contradicting to itself because utilitarian principle follows the decision of a decision maker based on what will be the best for most of them. But what if the decision will be favourable to the lesser opponent? Finding for alternatives are very essential in this principle to enable you to choose from a wide spectrum of choices that would be basis for decision making whether one will be good for some or the other one will be better for many. But decisions are usually made by the stakeholders or the ones in the highest position. There may be conflicts if the decision maker didn’t consider very well the good of the other people, which in case, he considered only one side of the parties.