WAKAWAKA – Group Case Study Presentation Case study – Ethical Dilemma (Everyone Does it)

1. WAKAWAKA – Group Case Study PresentationCase study – Ethical Dilemma (Everyone Does it) Group Members : Ahmed Mukhtar Hardik Patel Abdul Ali AvineshBhan Irshad Abdul

2. Case Summary • Sarah Brodzinkski has joined Universal Beverages as VP of Human Resources. • Sarah’s Package would be in excess $1m if she meets her target; which she is confident of achieving • She is introduced to a range of senior business executives & politicians by the MD (Craig Sherington) • Sarah is also introduced to the chairman of Oz Industries ( Richard Goodman)who is a major supplier and Universal Beverages defacto “Benefits Manager” according to the chairman of Universal Beverages • It comes up in the conversation between the Chairman (Richard) of the Oz Industries & her boss (Craig), that Oz Industries takes great pride in how it looks after it’s major customers. Customer satisfaction is a like a religion for Oz Industry and it takes great pleasure for its customers to enjoy its patronage. • The above information that she gathers from the introduction to the supplier’s chairman by her company’s director (Craig) confuses Sarah • To clear the confusion, the sales director of Oz Industries explains “ What other companies spend on advertising, we spend on building relationship with our customers”

3. Summary Continued … • Oz Industries provide all sorts of benefits for senior executives of there major customers. • The Directors for Sarah’s company has also taken similar favour’s from the supplier. • The above information causes Sarah to frown & she becomes uncertain of the Ethics of the situation • The chairman of Oz Industries (Richard) re-emphasizes that everything is OK & she did not have anything to worry about (The Practice of Getting Favors) • Sarah’s Boss reassures her “Everyone Does It” that it is a standard practice in the industry.

4. Q1. What ethical issues are raised in the case? • Taking special favour's from key supplier and vice versa • Using Company property and wealth for personal benefits. • Knowingly following the bosses in doing unethical things

5. Q2. Part 1 - Who are the major stakeholders involved? • Sarah Brodzinkski- The New Vice President of Human Resources (Universal Beverages) • Craig Sherington - The Chairman (Sarah's Boss) • Richard Goodman – Chairman of Oz Industries & Defacto Benefits Manager • Employee of Universal Beverages

6. Q2. Part 2- Explain what you think their views might be and why? • ''Everyone does it.'' That it is a standard practice in there industry. • Amongst other examples, her boss gave her the example of there country’s PM accepting use of utility truck from a used car firm Why ? “ if our political leader can do it, how could there be anything wrong ?

7. Q3. If you were Sarah, what would you do? • Rethink – The first thing to do is to think if you have chosen your employer wisely. • Secondly, you must use the company’s ethical framework and its values if you challenge your employer when you find out that the company policies and objectives is scrutinized. • If I was Sarah I would not agree in arranging to have the loan approved for the Managing Director’s son from OZ Industries fleet car. • If I was Sarah I would practice Code of Ethics and Conduct in compliance with the country’s law.

8. Q4. How would Sarah's acceptance of such benefit’s sit with Australia Resources Institutes professional code of ethics? • Sarah’s acceptance would mean that she is not complying with Australian code of ethics and professional conduct. • As a Vice President of Human Resources Sarah must agree to be bound by the standards of the code and include it as part of the working habits within the organization. • Sarah must act with integrity and trustworthiness and should not promote own self interest to undermine the organization’s objectives,accuracy,independence and behavior. • Sarah’s acceptance would undermine: • Honesty • Leadership • Lawfulness • Justice • Integrity • Confidentiality

9. Australia Code of ethics & professional conduct This code of ethics and professional conduct represents the desire of members of the Australian Human Resources Institute (AHRI) to establish the ethical and professional conduct expected to lead and elevate the human resources profession.By joining AHRI, members agree to be bound by the standards of the code and include it as part of their working habits within their organisations, with clients, colleagues and the community.Advancing the Profession - AHRI members are expected to enhance the good name of the profession and to promote the importance of human resources in the workplace, the business community and broader society. • Leadership - AHRI members will, to the extent of their ability and opportunity, lead others, by modelling competent and ethical behaviour, by fostering an ethical work environment, and by fulfilling their professional role selflessly. • Honesty - AHRI members will be honest, objective and truthful in their words, actions and representations and will not knowingly mislead their employer, employees or clients. • Integrity - AHRI members will act with integrity and trustworthiness and will not promote their own self interest or allow personal interest to undermine their objectivity, accuracy, independence and behaviour. • Lawfulness - AHRI members will not act unlawfully or advise in any way that would knowingly countenance, encourage or assist unlawful conduct by their employer, employees or clients.

10. Australia Code of ethics & professional conduct Justice - AHRI members will foster equal opportunity and non-discrimination and seek to establish and maintain fair, reasonable and equitable standards of treatment of individuals by their employer and by all employees in the organisation, through their own behaviour and through the policies and practices of their employer. Competence - AHRI members will maintain the highest standards possible in the advice, information and guidance they provide employees, employers and clients and commit themselves to maintaining and enhancing their professional knowledge, skills and competence through continuous professional development. Organisational capability - AHRI members will contribute to and encourage the learning and development of employees and will seek to achieve the fullest possible development of people for present and future organisational needs.

11. Conclusion … • Ethics has to do with morality & standard of behavior. What is considered ethical(and legal) in one culture may be viewed as unethical(illegal) in another. Australian HR managers cannot assume that their standards will be shared by others or will be seen right. Deciding what is “right” or “wrong” moreover is not easy when different ethical standards are in conflict. • It is recommended that companies take the following steps to ensure that their responses to different cultural environments are both appropriate and ethical: • Develop a clearly articulated set of core values as the basis for global policies and decision making. • A culture that supports ethical standards of behavior gives employees a clear guide as to what is acceptable and what is unacceptable. • Does it respect human life? Any business that endangers or harms life is unethical. The failure to provide a healthy and safe work environment is unethical because it deprives workers of the right to survive

12. Bibliography • http://www.ahri.com.au/MMSDocuments/membership/resources/governance/by-inlaw1_codeof%20ethics_professionalconduct.pdf • Ethical Dilemma: http://www.smh.com.au/executive-style/management/blogs/management-line/an-ethical-dilemma-20110430-1e1oc.html • Ethical Dilemma and Role you play: http://www.ispe.org/cEthical Dilemma and Role you play.pdfasa/5feb2011_business**ethics**.pdf • Ethical Lapses - http://jamesriverjournal.com/business/14772-ethical-lapses.html • Professional Ethics:  Ethical Dilemma and Role you play.pdf • Raymond J. Stone 3rd Edition

13. Question