Tuscan Choco and Churos Ltd is an established confectionary company which produces a variety of Chocolate bars. A lawsuit has been filed against the company by a customer who broke a tooth while eating one of the company’s chocolate bars. The chief financial officer of Tuscan Choco that this should not be disclosed in notes to the financial reports, because it may attract negative media coverage and encourage more lawsuits.
Provide an overview of ethical principles.
The provided study states that Tuscan Choco and Churos Ltd. is an established confectionary company which is famous for producing different types of Chocolate bars. The case states that a lawsuit has been filed by one of the customers of the company who had broken a tooth at the time of eating one of the chocolate bars which had been produced by the company. This incident however was not allowed to be disclosed in the financial reports of the company because the chief financial officer of the company felt that it would be responsible for causing negative coverage by the media and this had the chance of leading to lawsuits against the company (Riivari and Lämsä 2014).
The decision of the manager which has been stated needs to be analysed and bettered from a number of perspectives. There are certain ethical principles which need to be maintained in all organisations at all costs. The first and foremost ethical principle is that of honesty. The company officer in fear of damaging the reputation of the company, made a huge mistake as the ethical principle of honesty was not maintained at any cost. In order to be dependable by the customers organisations need to be transparent which was not being maintained in the situation discussed (Huhtala et al. 2013).
Integrity is another genuine attribute which companies need to maintain ideally. The integrity maintained by a company can make it grow in terms of achievement and development. Integrity itself is concerned with the ideal that truth needs to be told even if the nature of it is ugly. In this case if the truth regarding the customer’s complaint would be shared then the customers had a scope of understanding or even finding out what went wrong. This could have been done instead of hiding the truth (Riivari et al. 2012).
This case study and the decision by the chief financial officer also showed that the customers of the company where not adequately respected. This is because, respect would comprise of informing about the mistake by the company and the complaint by the customer, stating what actually went wrong. This might have ultimately gone a long way in making the customers much more reliant and dependable on the company. The company could also have given a gift hamper of chocolate bars to the customer in order to maintain a good relation and make sure that one unfortunate incident did not deter him or her from coming to that particular company in future (Lindebaum, Geddes and Gabriel 2017).
Another noteworthy ethic of a company is concerned with their commitment to excellence at all times. In this particular case study the financial officer needed to ideally contact the quality department of the company to ask about the issue in the chocolate bar. A notice could also have been published by the company for all its customers stating the reasons for mishap and stating that such issues would not occur in future. It has been reported that in certain cases the reason to act unethically arises due to client pressure which needs to be neglected at all costs.
Huhtala, M., Kangas, M., Lämsä, A.M. and Feldt, T., 2013. Ethical managers in ethical organisations? The leadership-culture connection among Finnish managers. Leadership & Organization Development Journal, 34(3), pp.250-270.
Lindebaum, D., Geddes, D. and Gabriel, Y., 2017. Moral emotions and ethics in organisations: Introduction to the special issue. Journal of Business Ethics, 141(4), pp.645-656.
Riivari, E. and Lämsä, A.M., 2014. Does it pay to be ethical? Examining the relationship between organisations’ ethical culture and innovativeness. Journal of Business Ethics, 124(1), pp.1-17.
Riivari, E., Lämsä, A.M., Kujala, J. and Heiskanen, E., 2012. The ethical culture of organisations and organisational innovativeness. European Journal of Innovation Management, 15(3), pp.310-331.