A: Case Study-An Ethical Dilemma
Dun and Ready (D&R) Company is a retail firm that started out in the United Kingdom. It recently expanded
into Mexico. D&R management are excited about the expansion because they anticipate a large market for their
goods in Latin America. They hired Raul to negotiate contracts for getting the necessary permissions to begin
building retail stores in Mexico City. Although Raul graduated from Cornell University, he spent his childhood
in Mexico and knew the country well. Raul’s manager, Ian Menkin, stressed to Raul the importance of getting
the new locations approved as soon as possible so the company could begin building their stores.
Unfortunately, Raul ran into some difficulties receiving permissions in the required time frame. Due to
unforeseen circumstances, the permissions process took longer than originally thought. When Raul explained
to Ian that the building process would likely be delayed due to these problems, Ian was not pleased. “Look,
Raul. We have a schedule to keep. The people here at headquarters will not take kindly to any delays.”
“But what should I do, Ian?” Raul asked. “Just do whatever it takes to get those permits approved,” Ian said
before hanging up the phone.
Raul called up Pedro, his main government contact that worked on approving zoning permits. Raul explained
the situation, but Pedro would not budge. “I’m sorry, Raul. But I can’t make the process go any faster.”
Raul, knowing his job could be on the line, begged Pedro to reconsider. Finally, Pedro agreed to meet with
Raul to “talk things through.”
Later that day, the two men met. Raul again presented his case. Pedro listened and finally spoke. “I understand
your predicament. And although it’s against policy, I believe I can help you get those permits approved.
However, I’m going to need 6,000 pesos to complete the job.”
Raul was uncomfortable with the idea. Again, he called up Ian in London. Raul explained the situation.
“Unfortunately, this is really going to be the only way to get this process done quickly.”
Ian was quiet for a little while. Then he spoke. “The money isn’t that important. It only amounts to a little more
than £ 300. Go ahead and pay him.” “But Ian, what if anyone at the company finds out?”
Ian replied, “It’s our policy to respect the different cultures in which we do business. It is one of our core values.
If giving small payments is the only way to get things done quickly, then that’s what we have to do.”
Raul agreed and paid Pedro the money. The permits were approved, and the first store was built. The success
of the store convinced the company to expand to more locations in the area. Unfortunately, Raul ran into the
same problem. Management at D&R wanted their building permits to be approved in a reasonable time period.
Raul explained that gaining approval could be a long process in Mexico, but D&R assumed since he had gotten
approval quickly once before, he could do it again. Raul was in a bind. So whenever Pedro offered to speed up
the process in exchange for a small amount of money, Raul agreed.
As a result of Raul’s success, he was promoted and relocated to the United Kingdom to the corporate offices.
His pay tripled since from when he had first started. Raul enjoyed London and loved his new job responsibilities.
Everything seemed to be going well.
Then one day Raul got a frantic call from Ian. “We have a problem. Somehow someone figured out about the
payments made to secure building permits in Mexico. They are launching an investigation.”
Although Raul was nervous, he could not understand Ian’s panic. “But the payments we made were not
extensive. It’s just the way things work in Mexico. You said everything would be fine.”
Ian’s voice was sharp. “You fool! It doesn’t matter whether the payments were small! Any type of bribery can
be prosecuted under the U.K. Bribery Act. It doesn’t matter whether the bribery took place in Mexico—any
company with operations in the U.K. can be held liable.”
Raul swallowed. “So what do we do?” he asked. “Listen carefully to what I’m telling you,” Ian said. “I want
you to find any documentation that might be incriminating and destroy it. If anyone comes asking, deny any
payments. Also, contact the person you made the payments to. Do what it takes to make sure he denies that
D&R made any improper payments to him.”
Raul hung up the phone. He knew if found out the company could face massive fines. Perhaps he and Ian could
get into legal trouble. However, he also knew covering up the bribery would make it worse for everyone if
discovered. On the other hand, Raul thought there was a good probability that the payments would not be
noticed. He knew that almost all companies have to make these payments to get transactions done in different
countries, and many have not been caught.
QUESTIONS
a) What is an ethical dilemma?
e) If Raul was a utilitarian, how would he arrive at the most moral decision to take?
(3 Marks)
f) Discuss three (3) problems in the application of the utilitarian theory.
(3 marks)
g) According to the deontological theory, what decision would Raul be required to make?
(3 Marks)
h) Discuss two (2) criticisms against the deontological theory.
(2 marks)
i) If Raul was an ethical egoist, what main principle would influence his decision to destroy the
incriminating documents or not to?
(3Mark

INSTRUCTIONS:

Attempt ALL questions.
All questions carry equal marks.

EXAMINATION QUESTIONS:

Q1. Farmers Market Enterprise is owned and run by the Nsiah family and have over the years been known for their fresh vegetable products throughout the town. The employees of Farmers Market Ent. are mainly family members and are not recruited based on their skills or qualification. Training is mainly on the job and is done by senior family members with more years at the business. The business has been good and could be described as a market leader in the town and they pride themselves in offering superior customer care. Whenever a customer has an issue with their products they are always open to replacing the defective product at no cost to the customer. The defective products are sold off at a discount.

Six months ago, a new shopping mall opened in the town offering fresh vegetables and providing stiff competition to the Nsiah family business. Patrons of this mall rarely experience product defects and hence are increasing their patronage of the mall’s products. Mr. Nsiah the head of the business is at his wits end and is struggling to keep the family business afloat due to a decreasing customer base and rising cost of business. Upon your return from the university you join your father, Mr. Nsiah in the family business and have to find innovative ways to compete favorably.

i. Identify two causes leading to the decline of the business? (5 marks)
ii. With the knowledge gained from your study of Introduction to Total Quality Management, discuss two

measures you would put in place to minimize the decline in the business. (5 marks)

iii. Analyze four business performance indicators you will suggest to Mr. Nsiah to help improve the

competitiveness of Farmers Market Enterprise. (10 marks)