Raider Inc.’s Ethical Issue Analysis

Topic: Business Ethics
Words: 322 Pages: 1

This case’s ethical issue is the consideration of Raider Inc. of defaulting on $250,000 of unsecured debt that PLB owes Johnson Printing. This issue is ethical because Johnson Printing has been on PLB’s side for many years and contributed to PLB’s success. This move by Raider Inc. can help PLB gain profit by putting Johnson Printing out of business, ignoring what Johnson Printing has done for PLB. Stakeholders impacted by this issue are the three aforementioned companies: Raider Inc. must make an important decision involving two organizations, and the fate of PLB’s debt and Johnson Printing’s future depend upon that decision.

Regarding solutions for Raider Inc., one can be Raider Inc. negotiating a contract with Johnson Printing to pay PLB’s debt over an extended period. Another solution is forming an agreement for PLB to immediately pay Johnson Printing any outstanding balances. One more solution is creating a deal for Johnson Printing to profit from PLB’s future sales counted towards repaying the debt. Thus, Raider Inc. acts rightfully by not dismissing Johnson Printing’s role in PLB’s success. As for the stakeholders, all these solutions affect them positively: PLB repays its debt, and Johnson Printing stays afloat. The solutions are beneficial for the organization since they contribute to a solidifying ethical culture.

Rick should consider a deontological point of view for this issue’s solution and act from this point of view. This course of action’s benefits is acknowledging Johnson Printing’s contribution and earning the reputation of a company that does what is right; however, there is a risk of PLB not agreeing to such conditions. To improve the ethical climate, three ways to do it are establishing the Code of Conduct for employees to follow, organizing ethical training within the company, and having ethics advisors. Managers at Raider Inc. can guide employees to make more ethical decisions by offering them to solve cases such as PLB/Johnson Printing case and discussing these decisions with them.

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