Business Ethics Task 1 (C717 – FZP1):
Organizational Ethics and Corporate Social Responsibility
Western Governors University
Date 2/22/2025
A.
1. Utilitarianism..is..the..idea..that..the..best..decisions..are..the..ones..that..help..the..m
ost..people..by..choosing..actions..that..bring..the..most..happiness..and..the..least..h
arm..to..everyone..involved...This..means..that..ethical..choices..should..not..only..b
enefit..the
company..but..also..positively..impact..employees,..customers,..and..the..community...
By..prioritizing..outcomes..that..create..the..most..value..for..all..stakeholders,..companie
s..can..align..their..actions..with..ethical..principles..and..social..responsibility.
2. One..ethical..issue..in..the..scenario..is..TechFite’s..decision..to..reclassify..many..full-
time..employees..to..part-
time..status,..limiting..their..access..to..benefits...Employees..were
initially..promised..a..full-
time..work..arrangement,..with..budget..constraints..have..led..to..a..reduction..of..their..h
ours,..preventing..them..from..qualifying..for..essential..benefits.
This..decision..has..caused..dissatisfaction..among..workers..and..contradicts..th
e..company’s..stated..values..of..employee..empowerment..and..well-being.
a.
This..is..an..ethical..issue..because..it..involves..a..breach..of..trust..between..TechFite..a
nd..its..employees,..creating..uncertainty..and..a..false..expectation..that..employees..
would..receive..stable..wages..and..benefits...By..cutting..hours..and..preventing..acce
ss..to
benefits,..TechFite..is..prioritizing..their..profits..at..the..expense..of..employee..well-
being.
This..decision..reflects..a..misalignment..between..the..company’s..values..and..its..actual..
business..practices.
b.
i. The..workers..are..directly..affected..by..the..reduction..in..hours..and..benefits...Many..
of..them..rely..on..full-
, time..wages..and..benefits..for..financial..stability,..healthcare,..and..job..security...By..
losing..these..essential..benefits,..they..may..face..economic..hardship,..leading..to..low
er..morale..and..potential..turnover.
ii. The..local..community..was..excited..about..TechFite’s..being..part..of..their
community,..expecting..new..job..creation..and..economic..growth...However,..with..th
e..reduction..in..full-
time..positions,..the..public..has..a..negative..perception,..harming..the..company’s..rel
ationship..with..the..community.
c.
Applying..utilitarian..principles,..TechFite..should..reconsider..its..approach..to..employe
e..compensation..and..benefits..to..maximize..overall..well-being...By..prioritizing
employee..well-being,..it..would..lead..to..a..more..productive..workforce,..increased
morale,..and..stronger..community..relations...The..company..could..explore..alternative..
solutions,..such..as..offering..partial..benefits..to..part-
time..employees..or..looking..into..gradually..restoring..full-
time..positions...This..will..create..positive..outcomes..for
employees,..the..community,..and..the..company..itself..by..rebuilding..trust..and..
commitment..to..their..ethical..values.
3. Despite..the..company’s..financial..constraints..leading..to..reduced..hours..and..benefi
ts..for..workers,..executives..continue..to..receive..bonuses..and..compensation.
a.
This..is..an..ethical..issue..because..it..reflects..an..imbalance..in..how..financial..resource
s..are..allocated;..prioritizing..executives..over..the..well-
being..of..employees..seems..unfair.
This..decision..can..lead..to..resentment,..low..employee..morale,..and..loss..of..trust..in
leadership,..ultimately..impacting..productivity..and..workplace..culture...Additionally,..i
t..harms..TechFite’s..credibility,..as..it..initially..presents..itself..as..a..company..that..valu
es..employee..empowerment,..but..ultimately,..it..acts..in..a..way..that..contradicts..this
principle.
b.
i. The..workers..may..start..feeling..undervalued..and..exploited,..knowing..that
executives..still..receive..a..generous..bonus..while..their..own..hours..and..benefits..ar
e..being..cut,..leading..to..higher..turnover..and..a..less..committed..workforce.
ii. A..disengaged..workforce..and..negative..public..perception..can..reduce..overall..c
ompany..performance,..leading..to..potential..financial..instability..and..shareholder
..dissatisfaction...While..executives..may..benefit..in..the..short..term..from..high
bonuses,..the..long-term..consequences..could..be..more..damaging.
c.
Utilitarianism..focuses..on..maximizing..overall..happiness..and..minimizing..harm.
TechFite..should..reassess..its..compensation..structure..and..prioritize..fairness..in..financ
ial..decisions...Instead..of..awarding..bonuses..to..executives..while..cutting