The development, implementation and practice of ethics and social responsibility is vital for organizations operating in the modern age, and needs to be driven by senior leadership on down to every employee of the organization. Problem is, not everyone places equal value to the myriad of social, ecological, and economic issues facing businesses. Chuck Williams defines ethics as "Ethics is the set of moral principles or values that defines right and wrong for a person or group. Unfortunately, numerous studies have consistently produced distressing results about the state of ethics in today’s business world" (Williams, 2015). Today, organizational leaders face pressure from stock holders to increase profits and build market share, pressure
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The first factor is magnitude of consequences, the total harm versus the total benefit from the decision. In this case, the benefit was increased profits over a period of six years, the total harm was immense, including the death of 88 people, law suits, federal oversight, damage to the Alaska Airlines’ reputation and stock price, and some individuals being terminated. Second factor is social consensus, meaning the agreement on if a behavior is good or bad. Viewing this decision from the outside, it is unknown if any individuals in the leadership were against the decision, or if all involved were in agreement. Third factor is the probability of effect, what is the likelihood something will happen to harm other people. Aircraft systems are designed to be robust, typically able to withstand three to four times the expected limit. Pushing a system to over five times its limit was negligent and dangerous. The fourth factor is temporal immediacy, the time between implementing the decision and possible effects of the decision. In the short term, there were no negative effects and the benefits in reduced costs and increase revenues were immediate, compelling leadership to believe the decision was sound. The fifth factor is proximity of effect, the cultural, physical distance, social or psychological distance between those affected by the decision, and those that made the …show more content…
The result of his leadership speaks for itself, Lego is now the world’s most profitable toy company, Lego’s are utilized by universities as teaching tools, and even used by NASA in numerous experiments and for prototype design. In addition to being recognized by leading engineers and artists as a premier building/designing medium, Legos have also established a few “Special” achievements, such as being the number one tire manufacturer in the world, making over 306 million tires a year, and in 2015, Lego replaced Ferrari as Brand Finance's "World’s most powerful
The first factor is magnitude of consequences, the total harm versus the total benefit from the decision. In this case, the benefit was increased profits over a period of six years, the total harm was immense, including the death of 88 people, law suits, federal oversight, damage to the Alaska Airlines’ reputation and stock price, and some individuals being terminated. Second factor is social consensus, meaning the agreement on if a behavior is good or bad. Viewing this decision from the outside, it is unknown if any individuals in the leadership were against the decision, or if all involved were in agreement. Third factor is the probability of effect, what is the likelihood something will happen to harm other people. Aircraft systems are designed to be robust, typically able to withstand three to four times the expected limit. Pushing a system to over five times its limit was negligent and dangerous. The fourth factor is temporal immediacy, the time between implementing the decision and possible effects of the decision. In the short term, there were no negative effects and the benefits in reduced costs and increase revenues were immediate, compelling leadership to believe the decision was sound. The fifth factor is proximity of effect, the cultural, physical distance, social or psychological distance between those affected by the decision, and those that made the …show more content…
The result of his leadership speaks for itself, Lego is now the world’s most profitable toy company, Lego’s are utilized by universities as teaching tools, and even used by NASA in numerous experiments and for prototype design. In addition to being recognized by leading engineers and artists as a premier building/designing medium, Legos have also established a few “Special” achievements, such as being the number one tire manufacturer in the world, making over 306 million tires a year, and in 2015, Lego replaced Ferrari as Brand Finance's "World’s most powerful