The dilemma Cummins Engine Company, Inc. faced was Tim had a decision to either comply with the EPA or put the low emission engine production on hold and accept a non-conformity penalty.
The challenge they faced was adhering to the consent decree and NOx emissions reduction would increase the total cost of ownership for companies purchasing the trucks and companies purchasing the trucks. This increased TCO could reduce their sales and upset stakeholders (Balancing Stakeholder Risks, 2014). This is an ethical dilemma within the stakeholder theory. The text defines the ethical portion of the stakeholder theory as the “view that profit maximization is constrained by justice, and that regard for individual rights should be extended to all constituencies …show more content…
The organization is also facing pressure from its competitors to take the penalty and continue to work on new technology to produce a better engine.The steps a leader takes to overcome these obstacles first begins with, meeting with stakeholders to make everybody mindful of the current issue. This allows the separate branches of the business to effectively communicate with each other and brainstorm on possible solutions. The subsequent stage is assessing the budgetary quality of the organization. This would be dictated by the deals and income quality of the organization. On the off chance that the business figures are demonstrating a descending pattern, the organization won't not have the capacity to create the new engines because of declining sales and revenue (Tekin, Erturk, and Tozan, 2015). Another step would be to form a focus group to analyze customer response to products already in the market. A favorable response could indicate that customers may be willing to pay more for better product. Then again, if the reaction is negative and clients are not happy with existing items, the organization will have a genuine issue (Sanga, Tumbo, Mlozi, and Kilma, 2013). The customer is the top stakeholder for the organization because without the purchasing power of the customer, the organization couldn’t exist.Another approach is to evaluate both sides of the decision to ensure that the integrity of the organization was not being compromised by the decision. Every organization has an ethical responsibility to do everything within its power to protect the environment and the community. The ethical issue that I would be faced with by not going along with my competitors would be the potential loss of jobs that could be lost due to having to cut back to find the revenue to
The challenge they faced was adhering to the consent decree and NOx emissions reduction would increase the total cost of ownership for companies purchasing the trucks and companies purchasing the trucks. This increased TCO could reduce their sales and upset stakeholders (Balancing Stakeholder Risks, 2014). This is an ethical dilemma within the stakeholder theory. The text defines the ethical portion of the stakeholder theory as the “view that profit maximization is constrained by justice, and that regard for individual rights should be extended to all constituencies …show more content…
The organization is also facing pressure from its competitors to take the penalty and continue to work on new technology to produce a better engine.The steps a leader takes to overcome these obstacles first begins with, meeting with stakeholders to make everybody mindful of the current issue. This allows the separate branches of the business to effectively communicate with each other and brainstorm on possible solutions. The subsequent stage is assessing the budgetary quality of the organization. This would be dictated by the deals and income quality of the organization. On the off chance that the business figures are demonstrating a descending pattern, the organization won't not have the capacity to create the new engines because of declining sales and revenue (Tekin, Erturk, and Tozan, 2015). Another step would be to form a focus group to analyze customer response to products already in the market. A favorable response could indicate that customers may be willing to pay more for better product. Then again, if the reaction is negative and clients are not happy with existing items, the organization will have a genuine issue (Sanga, Tumbo, Mlozi, and Kilma, 2013). The customer is the top stakeholder for the organization because without the purchasing power of the customer, the organization couldn’t exist.Another approach is to evaluate both sides of the decision to ensure that the integrity of the organization was not being compromised by the decision. Every organization has an ethical responsibility to do everything within its power to protect the environment and the community. The ethical issue that I would be faced with by not going along with my competitors would be the potential loss of jobs that could be lost due to having to cut back to find the revenue to