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E TH IC A L I S S U E S I N MA N A GE ME N T – M BA ( C O R E ) – Y E A R 1 –

2 0 1 9 - 20

Case Name: The Sticky Situation Group no: 4

Student Name (s) and Roll No.

Name SAP ID Roll No.

Harsh Agarwal 80101190017 B004

Ishita Gupta 80101190261 B024

Riya Bansal 80101190109 B014

Shumbham Pandit 80101190518 B043

Harshit Thukral 80101190741 B061

Abhimanyu Kaul 80101190358 B033

Your Key Decisions:

As per our analysis, we came to a conclusion that the situation needed to be dealt in an ethical

manner, which involves transparency between both the involved parties keeping in mind the

business norms and future relationship with the clients.

Following are the measures which should have been taken by Kent to address the situation:

1. Kent should have informed Jack clearly that their company doesn’t produce multi-label

products as requested by him. He could have discussed with Tim Davis and the production

team about the feasibility of the product before commenting on the possibility of production.

2. After discussing with Marty Klein, if it is known that the production is not feasible for Dura

Stick, he should have informed Jack that the company does not produce the multi-color

consumer type label and the production will have to be outsourced, from a reliable

Case Decision - Sticky Situation 1


E TH IC A L I S S U E S I N MA N A GE ME N T – M BA ( C O R E ) – Y E A R 1 –
2 0 1 9 - 20

manufacturer. He could assure Jack that the quality standards would be the same as that of

Dura-Stick Label Products. Additionally, Tom Davis would oversee the entire process.

3. Also, a reasonable cost for the product should be arrived at after discussion with Marty which

should be communicated to Jack in a formal proposal.

Rationale for your decision:

The offer for this new project was the largest offer both Jack and Dura Stick had ever received.

Considering this as a big opportunity in the new market, the offer can’t be declined straightforwardly.

The decision we have taken for this new project is not only aligned with ethical values required in a

business but also focuses on the expansion as well as the profitability of the company. Kent’s main

motive was to achieve Job Security and he failed to take into account the impact on the other key

stakeholders i.e. Dura-Stick and Spray On. The violation of business ethics by Kent cannot be

justified as it was against his role as a company leader as well as a community leader.

After analyzing the case, we were able to identify three instances where Kent violated business

ethics:

1. When he didn’t inform Jack that Dura Stick didn’t manufacture the required product (Multi

Colored Labels), he not only threatened the existence of his company but also of Jack’s

company. It would have led to loss of loyal customer.

2. When he blatantly lied about the reason behind the higher cost of the product ordered by

Jack.

3. Displaying poor management of ethics by keeping Jack under the impression that Tim Davis

would be personally overseeing the production.

Hence, we came to a conclusion that Kent’s action were not acceptable and he could have handled

the situation in better way.

Case Decision - Sticky Situation 2


E TH IC A L I S S U E S I N MA N A GE ME N T – M BA ( C O R E ) – Y E A R 1 –
2 0 1 9 - 20

Do you foresee any risk factors including any negative/unintended


consequences of your decision?

The decision taken by us that Kent should be transparent and reveal the actual situation to Jack can

have multiple negative consequences. There is a chance that Dura Stick might not get the offer from

SprayOn which puts Kent's own job security at risk since his performance in the organization has

been mediocre till now. Secondly, there is also a chance that SprayOn might altogether shift to

another company for its operations. Thirdly, the reputation of the company could be negatively

affected.

What are your plans for taking care of negative/unintended


consequences?

To overcome the negative consequences, we can cut our profit margins initially to compensate for

the mistake and retain the business from Jack. It will showcase that the company will go out of the

way to maintain good business relations with Spray On. Also, company should draft a policy

regarding ethical Code of Conduct to ensure such situations do not arise in future.

Case Decision - Sticky Situation 3

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