You have done MBA from a reputed institution three years back but could not get campus placement due to COVID-19 generated recession. However, after a lot of persuasion and series of competitive tests including written and interview, you managed to get a job in a leading shoe company. You have ageur parents who are dependent and staying with you. You also recently got married after getting this decent job. You were allotted the Inspection Section which is responsible for clearing the final product. In first one year, you learnt your job well and was appreciated for your performance by the management. The company is doing good business for last five years in domestic market and this year it is decided even to export to Europe and Gulf countries. However, one large consignment to Europe was rejected by their Inspecting Team due to certain poor quality and was sent back. The top management ordered that ibid consignment to be cleared for the domestic market. As a part of Inspecting Team, you observed the glaring poor quality and brought to the knowledge of the Team Commander. However, the top management advised all the members of the team to overlook these defects as the management cannot bear such a huge loss. Rest of the team members except you promptly signed and cleared the consignment for domestic market, overlooking glaring defects. You again brought to the knowledge of the Team Commander that such consignment, if cleared even for domestic market, will tarnish the image and reputation of the company and will be counter-productive in the long run. However, you were further advised by the top management that if you do not clear the consignment, the company will not hesitate to terminate your services citing certain innocuous reasons. [2022]

(a) Under the given conditions, what are the options available to you as a member of the Inspecting Team?
(b) Critically evaluate each of the options listed by you.
(c) What option would you adopt and why?
(d) What are the ethical dilemmas being faced by you?
(e) What can be the consequences of overlooking the observations raised by the Inspecting Team?

(a) As a member of the Inspecting Team, some options that are available to me are:

  1. Clear the consignment for the domestic market as instructed by the top management, despite knowing about the defects in the product.
  2. Refuse to clear the consignment for the domestic market, citing my concerns about the quality of the product and the potential negative impact it could have on the company’s reputation.
  3. Try to negotiate with the top management and explain the potential risks of releasing a subpar product to the market.
  4. Seek guidance or support from a higher authority, such as a supervisor or HR department, to address the ethical dilemma I am facing.
  5. Resign from my position and seek employment elsewhere, rather than compromising my personal values and principles.

(b) Here is a critical evaluation of each of the options listed above:

  1. Clearing the consignment for the domestic market as instructed by the top management would likely be the easiest option in the short-term, as it would avoid any potential conflict with the company. However, it would also involve compromising my own standards and values, as well as potentially damaging the company’s reputation in the long-run if the defects in the product are discovered by customers.
  2. Refusing to clear the consignment for the domestic market could potentially lead to conflict with the top management, and could even result in my termination from the company as threatened. However, it would also allow me to maintain my integrity and uphold my personal values.
  3. Negotiating with the top management could be an option, as it allows me to express my concerns and potentially find a compromise that is acceptable to both parties. However, it is not guaranteed that the top management will be receptive to my concerns or willing to negotiate.
  4. Seeking guidance or support from a higher authority could be a way to seek assistance in resolving the ethical dilemma I am facing. This option could involve seeking advice from a supervisor or HR department, or even reporting the issue to an external body such as a regulatory agency or industry association.
  5. Resigning from my position and seeking employment elsewhere would allow me to avoid compromising my personal values, but it would also involve leaving my current job and potentially starting a job search process in a difficult economic environment.

(c) Given the options available to me, I would choose to seek guidance or support from a higher authority, such as a supervisor or HR department. This option allows me to express my concerns and seek assistance in resolving the ethical dilemma I am facing, without having to compromise my personal values or risk damaging the company’s reputation. It also offers the possibility of finding a compromise that is acceptable to both parties, without having to resort to more extreme measures such as resignation or conflict with the top management.

(d) The ethical dilemmas being faced by me include the potential harm to the company’s reputation if the defects in the product are discovered by customers, as well as the potential conflict with the top management if I refuse to clear the consignment for the domestic market. There is also the dilemma of compromising my own personal values and standards if I agree to overlook the defects in the product.

(e) The consequences of overlooking the observations raised by the Inspecting Team could include harm to the company’s reputation if the defects in the product are discovered by customers, which could lead to a loss of trust and loyalty among customers and potentially damage the company’s bottom line. It could also lead to potential legal or regulatory issues if the product does not meet certain standards or requirements. In the long-term, the company’s reputation and financial success could be at risk if it becomes known for releasing subpar products to the market.

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