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$thics in %&siness

'(rom a #&siness ersective) wor*ing &nder government contracts can #e a very "&crativeroosition+ ,n genera") a stream o! orders *ee coming in) reven&e increases and the comanygrows in the aggregate+ -he o#vio&s down!a""s to wor*ing in this manner is #oth higher .&a"itye/ected as we"" as the e/tensive research and doc&mentation re.&ired !or governmentcontracts+ ,! a art !ai"s to er!orm correct"y it can ca&se minor g"itches as we"" as ro#"ems thatcan carry serio&s reerc&ssions) s&ch as in the ationa" Semicond&ctor case+ When #oth thec&"a#"e comonent and comany are !o&nd) the .&estion arises o! how e/tensive thesereerc&ssions sho&"d #e+ ,s the comany as an entity "ia#"e or do yo& "oo* into individ&a"em"oyees within that comany (rom an ethica" ersective one wo&"d have to "oo* at themitigating !actors o! #oth the em"oyees and their s&eriors a"ong with the ro"e o! others in the!ai"&re o! these comonents+ e/t yo& wo&"d have to ana"ye the !ina" r&"ing !rom a cororateersective and then we m&st e/amine the macro iss&e o! cororate resonsi#i"ity in order toattemt to !ind a reso"&tion !or cases "i*e these+-he !irst mitigating !actor invo"ved in the ationa" Semicond&ctor case is the &ncertainty) on theart o! the em"oyees) on the d&ties that they were assigned+ ,t is "a&si#"e that d&ring the testingroced&re) an em"oyee co&"dnt disting&ish which arts they were to test &nder governmentstandards and commercia" standards+ ,n some cases they might have even #een misin!ormed onthe !ina" cons&mers o! the rod&cts that they tested+ ,n !act) ignorance on the art o! theem"oyees wo&"d !&""y e/c&se them !rom any mora" resonsi#i"ity !or any damage that may res&"t!rom their wor*+ Whether it is decided that an em"oyees is !&""y e/c&sed) or is given some mora"resonsi#i"ity) wo&"d have to #e "oo*ed at on an individ&a" #asis+-he second mitigating !actor is the d&ress or threats that an em"oyee might s&!!er i! they do not!o""ow thro&gh with their assignment+ !ter the #og&s testing was com"eted in the ationa"Semicond&ctor "a#s) the doc&mentation deartment a"so had to !a"si!y doc&ments stating that thearts had s&rassed the governmenta" testing standards+ (rom a "ega" and ethica" standoint)#oth the testers and the writers o! the reorts were mere"y acting as agents on direct orders !rom

a s&erior+ -his was a"so the case when the "ant in Singaore re!&sed to !a"si!y the doc&mentsand were "ater !a"si!ied #y the em"oyees at the have a"i!ornia "ant #e!ore #eing smitted tothe arova" committees Ve"a.&e) 536+ -he writers o! the reorts were we"" aware o! thesit&ation yet they acted in this manner on the instr&ction o! a s&ervisor+ cting in an ethica"manner #ecomes a secondary riority in this tye o! environment+ s stated #y "an 7eder) + + + i!they 8the em"oyees !ee" they wi"" s&!!er retri#&tion) i! they reort a ro#"em) they arent too "i*e"yto oen their mo&ths+ 1136+ -he wor*ers *new that i! the reorts were not !a"si!ied they wo&"dcome &nder .&estioning and erhas their em"oyment wo&"d go into jeoardy+ "tho&gh wor*ing&nder these conditions does not !&""y e/c&se an em"oyees !rom mora" !a&"t) it does start thediv&"ging rocess !or determining the order o! the chain o! command o! s&eriors and it he"s tonarrow down the erson or deartment that iss&ed the origina" re.&est !or the &nethica" acts+-he third mitigating !actor is one that erhas encomasses the majority o! the em"oyees in theationa" Semicond&ctor case+ We have to #a"ance the direct invo"vement that each em"oyee

had with the de!ective arts+ -h&s) it has to #e made c"ear that many o! the em"oyees did nothave a direct d&ty with the testing deartments or with the arts that event&a""y !ai"ed+ $venem"oyees) or s'contractors) that were direct"y invo"ved with the rod&ction were not aware o!the incometence on the art o! the testing deartment+ (or e/am"e) the e"ectrica" engineer thatdesigned the de!ective com&ter chi co&"d act in good !aith that it wo&"d #e tested to ens&re thatit did indeed meet the re.&ired government end&rance tests+ "so) !or the em"oyees that hand"edthe art a!ter the testing rocess) they were dea"ing with what they #e"ieved to #e a comonentthat met every governmenta" standard+ ,! it was not tested roer"y) and did event&a""y !ai") isntthe testing deartment more mora""y resonsi#"e than the designer or the assem#"y "ine wor*erthat was in charge o! insta""ing the chi P"&s) in "arge cororations there may #e severa" testing

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deartments and is some cases one may #e he"d more resonsi#"e than another deending ontheir invo"vement+ rocess "i*e this can serve the d&a" &rose o! !inding irresonsi#"eem"oyees as we"" as those that are mora""y e/c&sed+-he !o&rth mitigating !actor in cases o! this nat&re is the ga&ging o! the serio&sness o! the !a&"t orerror ca&sed #y this rod&ct+ Since ationa" Semicond&ctor was reeated"y #eing reinstated tothe "isted o! aroved government contractors) one can sa!e"y ass&me that the "eve" o!serio&sness) in the oinion o! (or the contractor arova" committees) is not o! mon&menta"imortance+ ;et one has to wonder how this case wo&"d have #een di!!erent i! the "ac* o! testingdid ca&se the "oss o! "i!e in either a domestic or !oreign mi"itary setting+ Perhas thereerc&ssions wo&"d have come !aster m&ch more stringent+ -he !act that ationa"Semicond&ctor did not ca&se a death does not ma*e them a sa!e comany+ -hey are sti"" to #ehe"d resonsi#"e !or any errors that their rod&cts ca&se) no matter the magnit&de+

s !or the oosition to the de"egating o! mora" resonsi#i"ity) mitigating !actors and e/c&sing!actors) they wo&"d arg&e that the entity o! the cororation as a who"e sho&"d #e he"d resonsi#"e+-he e/ec&tives within a cororation sho&"d not #e !orced to #ring o&t a"" o! the em"oyeesresonsi#"e into a "ic !or&m+ comany sho&"d #e rerimanded and #e "e!t a"one to carry o&tits own interna" investigation and reerc&ssions+ (rom a #&siness "aw ersective this is the idea"case since a cororation is de!ined as #eing a searate "ega" entity+ (&rthermore) the oositionwo&"d arg&e that this reso"&tion wo&"d #ene!it #oth the comany and the government since itwo&"d not inconvenience either arty+ -he origina" reso"&tion in the ationa" Semicond&ctor case

was a"ong these "ines+ -he government ermanent"y removed ationa" !rom its arovedcontractors "ist and then ationa" set o&t to &ntang"e the we# o! c&"a#i"ity within its own con!ines+-his a""owed a re"ative"y .&ic* reso"&tion as we"" as the idea" scenario !or ationa" Semicond&ctor+,n resonse) one co&"d arg&e that the entity o! a cororation has no mora"s or even a concet o!the word) it is on"y as mora" and ethica" as the em"oyees that wor* in that entity+ "" o! theem"oyees) inc"&ding to ran*ing e/ec&tives are wor*ing towards advancing the entity *nown astheir cororation aitman) 11

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sensi#"e manner+ !ter a"") no e/ec&tive wants to thin* o! themse"ves as mora""y irresonsi#"e+aitman) 11>6+-he .&estion that nat&ra""y arises) in de#ating cororate resonsi#i"ity) is what tyes o! chec*sand #a"ances can #e em"oyed within a comany to ens&re that a cororation and a"" o! itsagents act in an ethica" manner+ -a*ing the e/am"e o! the ationa" Semicond&ctor case) one cannotice many !ai"&res in mora" resonsi#i"ity+ ationa" Semicond&ctor wo&"d have to review itsem"oyees) artic&"ar"y the s&ervisors) !or #asic ethica" va"&es s&ch as honesty+ e/am"e)&"timate"y it was the widesread !a"si!ication o! the testing doc&mentation that ca&sed thedown!a"" o! ationa" Semicond&ctor) not the integrity o! their comonents+ ,n the synosis o! thecase it is never mentioned that the em"oyees initiated this idea) it wo&"d seem that it was thes&ervisors that gave the order to !a"si!y the doc&ments+ ,n order to accom"ish this) the comanye/ec&tives wo&"d have to enco&rage their em"oyees to voice their concerns in regards to theadvancement o! the comany+ -hro&gh oen comm&nication) a comany can reso"ve a variety o!its ethica" di"emmas+ s !or the !inancia" asects o! the cororation) it has to decide whether the"ong term e!!ects that a rerimand !rom the government can have o&tweighs their #ottom "ine+ ,nother words) cororations have to start moving away !rom the tho&ght o! instant ro!it and startrea"iing #oth the "ong term e!!ects and #ene!its+ -hese "ong term #ene!its can inc"&de a strongersense o! ethics in the wor* !orce as we"" as a #etter overa"" society+-o conc"&de) , m&st say that , agree with the &se o! mitigating !actors in determining mora"resonsi#i"ity+ comany) as de!ined #y "aw) is on"y a name on a iece o! aer+ -he comany

acts and cond&cts itse"! according to the em"oyees that wor* in that entity+ , &se the wordem"oyee #eca&se in ethica" thin*ing there sho&"d #e no distinction o! ran* within a comany+-here are times when e/ec&tives can #e he"d direct"y resonsi#"e and at the same time) there arecases where em"oyees are acting &nethica""y witho&t the e/ec&tives *nowing+ either tit"e o!e/ec&tive or em"oyee e.&ates to mora" er!ection+ -here!ore) when a comany has actedirresonsi#"y) its em"oyees m&st #e he"d "ia#"e in a roortionate amo&nt+ s !or the !&t&re o!ethics in #&siness , wo&"d sec&"ate that i! em"oyees started to thin* more in "ong term #ene!itsand ro!its) many o! the ethica" di"emmas that we !ace today wo&"d #e great"y red&ced+ smentioned #e!ore) #&sinesses today &ses the meas&ring stic* o! ro!ita#i"ity+ -here needs to #e ashi!t to the thin*ing o! tota" &ti"ity !or the socia" comm&nity in order to weigh #&siness decisions+@onents wo&"d arg&e that this is a "ong term "an that re.&ire too many radica" changes in the!ace o! #&siness+ "so) there is no way that an ind&stry wide standard can #e set since there aretoo many tyes o! cororations+ P"&s) comanies have di!!erent needs and every mora" r&"e is

sjective according to the tye o! #&siness that everyone cond&cts+,n resonse) , wo&"d arg&e that a"tho&gh there are no ind&stry standards that are !easi#"e) it isossi#"e !or every comany to e/amine their ractices as we"" as the attit&de o! their em"oyees+-here wi"" #e comanies that !ind that they are doing !ine with em"oyees that are aware o! theirmora" va"&es+ ;et other comanies wi"" !ind that they do have areas that need imrovement+ ,t isstes "i*e these that start im"ementing changes+ @nce a !ew comanies start to see the #ene!itso! changes) it can he" to enco&rage other comanies to !o""ow s&it+ !ter a"") as seen in the caseo! ationa" Semicond&ctor) mista*es in one deartment can ca&se the deterioration o! an entirecororation+ When the costs that are ossi#"e are ta*en into acco&nt) the changes re.&ired torecti!y this are sma"" in comarison+%i#"iograhyaitman) Wi""iam+ 19

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Sch&yten) Peter+ -o "one om&ter+ ew ;or* -imes(e#r&ary 4) 19