The Skeleton in the Corporate Closet essay
What is the leader’s role in creating and maintaining an ethical organization? What actions should Hap take to resolve his ethical dilemma?
In the case “The Skeleton in the Corporate Closet”, important ethical dilemmas are presented to address the role of the corporate culture in maintaining an ethical organization. Actually, the leader plays an important role in creating and maintaining an ethical organization. According to researchers, “organizational leaders can use organizational culture to create values that result in ethical or unethical behavior”(Sims, 2002, p. 310). Hap should take the proper actions to resolve his ethical dilemma. He should make a decision how to deal with the undesirable information to serve the best interests of the company’s stakeholders. If his decision is to make the information public, he should evaluate when and how this information must be released. In fact, this case is a complicated one because it requires finding the adequate ethical solution. The document which tells about the real inventor of the company’s product may be disclosed. In this case, the reputation of the company will be damaged. As a result, the success of the company on the competitive market may be lost. The most important task is to use the proper action to avoid the disclosure. Hap should follow the ethical principles, but he should not damage the company’s reputation.
What options does CEO Hap Parker have for managing public perceptions of the firm?
Hap Parker, the grandson of the company’s founder is the CEO of GPS. He has several options for managing public perceptions of the company. He knows that his grandfather’s name should not be impugned. Although Hap’s grandfather hadn’t invented Parkelite, he used his skills, knowledge and experience to build the successful company that promoted many other innovations (Kirby, 2002). The first option is to follow the advice of Newland Lowell, GPC’s lawyer who states that Hap may not divulge the secret information. Actually, this evidence did not change the trial’s outcome. The two fellow chemists, Hap’s grandfather and Karl Gintz, might have been working together on the innovation all along. Nevertheless, the concealment makes Hap Parker feel uncomfortable because GPC’s corporate culture has always been perfect and demonstrated integrity and credibility. It would be unfair to destroy the myth of GPC’s vibrant and fair corporate culture and lose credibility of 8,000 employees. The second option is to make the secret information public. In this case, Hap Parker would act ethically regarding Karl Gintz, but the reputation of the company would suffer. The best option is not to divulge the secret information.
What obligations does the CEO, in this case Hap Parker, have to a corporation’s multiple stakeholders?
The CEO of the company is Hap Parker. His obligations to a corporation’s multiple stakeholders, including employees, suppliers, the broader community and the environment, affect the overall success of the company. Ethical obligations to employees and suppliers include setting the example that shows respect for others. CEO should serve others, being honest and just in decision making. CEO should actively build a community following the established code of ethics. CEO should be open in his dealing with colleagues and with community leaders. CEO should be sensitive to other people’s needs, providing care and support to others (Kuper, 2006). Undoubtedly, the GPC’s CEO is interested in economic prosperity of the company and its employees. Hap Parker should not divulge the secret information in order to keep the business flourishing.
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