Business Ethics
A Saudi businessman decided to open a large tobacco-blend (cigarettes) company in Saudi. This Saudi businessman believes Saudi market and country has the priority and needs to keep profit here in Saudi better than make non-Saudi exporters’ companies. Logically, this Saudi businessman believes that make a Saudi tobacco company will NOT going to increase neither decrease the number of smokers in Saudi. Furthermore, the CEO promises to contribute towards community by reducing unemployment rate as the company has committed itself to hire around 2000 Saudi male and female to work in this tobacco company. Moreover, the CEO company has announced that %4 of the company’s profit will be spent on Corporate Social Responsibility (CSR) initiatives by building schools and hospitals etc….
Q1- Even though having tobacco company in Saudi may have human and environmental harmful consequences in Saudi, do you think allowing a Saudi tobacco company to open business in Saudi is ethical? Why?
Q2- Do you agree with the businessman’s statement about Saudi’s market has the priority to have the return-on-investment and profit of tobacco instead of having them for foreign companies outside of Saudi? Why?
Q3- To what extent do you agree with the Saudi businessman about the company’s contributions by reducing unemployment rate (hiring 2000 Saudis) and CSR initiatives (building schools and hospitals)? Justify?
Ethical leadership
Ali is a manager in X company has in public verbally abused one of the employees, Saleh, for big mistake the employee Saleh made which, consequently, cost the company a lot of money. On the other hand, Manal is manager in another Y company has experienced a similar situation with one of her employees, her name Abeer. However, Manal’s reaction was quiet, but immediately decided to fire Abeer by not renewing her contract which coincidentally was due in a month time.
Q1 – Does Ali’s verbal abuse reaction is ethical? Why?
Q2 – Does Manal’s decision is legal? Explain?
Q3 – In comparison between Ali and Manal’s reaction and decision, which one do you think is correct? Why?
Q4 – If there is another way of dealing with this exact issue, what would it be? Explain?