Corporate Ethical Dilemma and Recommendation

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Corporate Ethical Dilemma and Recommendation

Introduction

The case at hand is that of a company which has an information systems division. Recently, the company had put the system to use. However, the CEO got negative feedback regarding the new system and wants a justification. However, the negative feedback is correct but the information systems division manager, Mary, is trying to cover up the situation. Joe, who is the district manager of information systems division, is faced with the moral and ethical dilemma in the organization (Brickhaus, 1992).

It appears ostensibly that only the characters in the case are involved as the stakeholders of the problem and the ethical dilemma. However, this is absolutely false as the real stakeholders include those who use the system, those who will buy the same system from the vendor in the future, the company, and the stakeholders of the business. In this way, if not the whole society, a large number of stakeholders are involved which does not necessarily include only those who use the defective information system or are involved with it in any other sense. It includes both current and future users of the defective system as well as the buyers of the system including the company and other potential business buyers of the given information system.

All these stakeholders are hence because they have certain interests pertaining to the correct functioning of the system. First of all the users of the system need the system to be working properly and fine so that they could work on it without getting into any troubles and problems and by escaping the errors that the faulty system produces. Then, the company is the stakeholder as the business wants to generate payback from the information system which it has purchased with the money of the shareholders. Then, the shareholders are also remotely interested in the proper functioning of the system as they want the payback from each of the assets of the company, be it tangible assets such as the hardware or the intangible assets such as the software of the information system. Finally, the stakeholders are also those who could potentially buy the faulty information system from the supplier in the future. They need to get the negative feedback so that they are aware not to buy any such defective system that does not work properly or give the desired results and outcomes that are expected from the correct functioning of the said information system.

Legal analysis

The Uniform Commercial Code, 2001, Article 2 is relevant to the case. Under the S. 315 of the Article 2 of the code, the buyer has implied warranty of the good received which arises from the seller's knowledge of the purpose of the buyer's buying the good. In this sense, the good must be able to perform the purpose for which it has been bought by the buyer. Therefore, the company has received implied warranty of the information system that it has purchased from the vendor. Next, ...