Professional Documents
Culture Documents
A Case Study
on
Roger Berg (Case #1)
Submitted By:
Group #1
Animoza, Wabel
Fernandez, Androlito
Medina, Clarice
Sandejas, Benedict
Yu, Edilyn Ruth
04 October 2014
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I.
II.
Synopsis:
Roger Berg, VP of Planning for Lake Corporation, was developing a new project and is in need of a
contractor. His intention was to award this to Ceil Grant, a small contractor he had worked with. On a
conversation with Del Leonard, another contractor who has more experience and is more expensive,
Leonard offered Roger help on securing an appointment at a medical clinic that Del has influence
over.
In the evening of that same day, Roger thanked Del for the favor, telling him how much help it is. He
said that he will recommend Del as the contractor of choice on the selection the day after. Del then
proposed a better deal than Grants Cost Estimate. Did Roger conduct himself in an ethical manner?
Statement of the Problem
What action should Roger Berg take involving the awarding of the environmental study contract,
taking into consideration ethics and moral conduct as a Vice President?
III.
Point of View
This case is studied in the point of view of Roger Berg, the Vice President for Planning in Lake
Corporation, a real estate development firm in Northern California.
IV.
1.
Objectives
To choose a contractor which addresses the company's requirement and maximizes
Shareholder value
The selection of a contractor should be oriented towards the lowest possible cost with the highest
possible value to the Shareholder
2.
3.
4.
IV.
Areas of Consideration
1.
On the selection of contractors, companies usually conduct a bidding process. As an employee, one
must ensure that the companys position will not be compromised and all decisions are beneficial to
the company and its workers. However, personal preferences sometimes affect our decisions. Roger
Berg holds a key position in the company, having influence over key decisions. His personal
preferences must not put the company in a difficult position nor conflict with the companys standards/
policies.
2.
Ceil Grants small firm, despite its size, has built a good working relationship with Lake Corporation.
Their competence and good track record makes them a very likely candidate for the project. On the
other hand, Del Leonards firm is much bigger compared to Grants. Leonard promised to give better
output, due to their experience in the business and the number of workers that they can assign to
work on the project.
3.
Bidding Process
Grants firm had undergone the normal process of selecting the subcontractor for the project. On the
other hand, Leonards company is currently preferred not only because of the companys outstanding
achievements in the business but also because of the personal favor that triggered Berg to reconsider
Leonard.
4.
Building relationships/networks are vital in any business as a foundation for success and growth. A
good business network is a competitive edge as it helps the business reach its goals through external
means . In the case of Berg, a history with Grants small firm gives Bergs company an assurance in
the quality & cost of work. On the other hand, Leonards big company has had more experiences in
the field, with more resources that can be an advantage for Bergs company as well. In addition to
this, since Leonard is already extending his help for Bergs wife, not being able to accommodate him
in the selection process could prevent this favor from happening. As Berg loves his wife, this decision
is very important to him.
V.
1.
Discussion of Framework
Consequentialist Theory (Mainstream Management)
Part of the Mainstream Management theories, it shows high emphasis on materialism and
individualism. The Consequentialist Theory focuses on the consequences of an action in determining
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what is ethical; thus, an an action resulting in beneficial outcomes is ethical whereas an action
with harmful outcomes is unethical. The outcome is measured through wealth/money, to be
distributed to the companys employees for the purchase of their own needs.
In the application of this theory, Berg will be examined through the outcome of his actions. Whichever
his personal motive may be in the possible recommendation of Leonard as the contractor, such as: 1.)
repaying gratitude for Leonard, or, 2.) to ensure a personal favor from him, he is considered ethical if
the outcome is beneficial to everyone - and we can see that Leonard has offered better work than
Grant.
2.
3.
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term, as an action leads to a habit. And a good habit builds, while a bad habit destroys the person and
his community.
4.
Deontology
Deonotology, also known as Duty-Based Ethics, focuses on the moral actions of a person, and not on
the consequences. Do the right things because it is the right thing to do; do not do the wrong things
because it is the wrong thing to do. In Deontology, you cannot justify an action because it has good
consequences, and people have a duty to act accordingly. The right overcomes the good.
In view of Bergs personal decisions, it is his duty to do the right thing and focus on his actions as
much as the consequences of his actions. In choosing Grant, Berg conforms to the moral norm, and
morally correct choices is reflected upon ones character, eventually earning peoples trust and
respect and possibly leading to a promotion in the future.
VI.
CONS
ACA 2: Recommend Del Leonards firm without informing Upper Management about
circumstance behind the recommendation
PROS
This is a large firm which has twice the
experience and twice the people of Cel.
Berg might be able to get a consultation with
the clinic for his wifes treatment.
Berg is not honest about the real reason
behind the recommendation.
CONS
ACA 3: Recommend Del Leonards firm, informing Upper Management about circumstance
behind the recommendation
PROS
CONS
CONS
VII.
PROS
CONS
Recommendation
ACA1
ACA2
ACA3
ACA4
ACA5
35%
40%
40%
30%
28%
34%
27%
31%
27%
26%
6%
7.2%
3.4%
10%
7.4%
8%
4%
10%
7%
7%
78.2%
84.4%
74%
68.4%
TOTAL 83%
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Our recommendation is that Berg should still recommend Leonards company for the environmental
study, however he should disclose the additional circumstances surrounding this recommendation.
Although he was already ready to recommend Leonard, Berg did not neglect his company by making
sure that the contract price should be the same as the price given by Grant. He was still protecting his
Shareholders. Since the company can get Leonard's company, which was noted to be bigger and had
more resources, for the same price as Grant, Bergs company got a better deal, increasing
Shareholder Value. With regards to Ethical Conduct, Berg did not put the Lake View in a financially
disadvantageous position by recommending that Leonard get the contract. Unlike most ethical
decisions which affect the owner's wealth, Lake View actually benefited from it. Also, most of the
people affected by this decision will benefit from this, with the exception of Grant.
Since Berg had informed his superior about his agreement with Leonard, Upper Management is
aware that ethical problems may exist, especially when it comes to personal issues. A review of their
ethical standards can be conducted to check if it was violated and if sanctions should be imposed.
Other employees should be reminded that these standards exist to prevent problems arising in the
future.
VIII.
Implementation Plan
Deliverables
Deadline
People
Objectives
Involved
1. Roger Berg
recommends Leonard on
the basis of his rates and
ability to deliver
Roger Berg
Roger's Boss
Roger Berg
Roger's boss
IX.
Learning
This case studies the ethical and moral values which each person encounters every so often. It is said
that our ethical and moral values are strongly influenced by the way we are brought up by our parents
or guardians. In encountering gray areas, we often refer to our own code of ethics. Apart from the
law, our own code of ethics contributes to our decisions, and it varies in standards we have defined
for ourselves. For us Filipinos, some believe that in this present time, it takes ethics plus diskarte
(tactic) to win in the game of life. Such is the dilemma of Berg in choosing which contractor to
recommend.
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In ethics, we can give more importance either to the actions or its consequences (utilitarianism versus
deontology). The answer may vary per person as both are considered ethical. Likewise, we believe a
balance of both must be achieved. There should be no unethical action/s committed in the process of
achieving an outcome that is beneficial to the majority. To make this happen, all factors involved in
decision-making must be mapped out, giving more weight the priorities and crossing out unethical and
immoral actions. Then, the options must be also be weighed according to how they help reach the
goal. This practice helps the decision-maker get a clear view of the decision to be made, both in micro
and macro aspects. Applying this practice will help gray areas turn fifty shades whiter.
X.
References
http://plato.stanford.edu/entries/ethics-deontological/
Dyck, B., & Neubert, M. (2012). Management: Current Practices and New Directions. Cengage
Learning.