QUESTION
ABC Bhd is a public listed company incorporated in Malaysia. (hereinafter referred to as ‘The Company’) whereby Mr. Alex Chong is the majority shareholder and director of the company. The Memorandum and Articles of the Association of the Company provides that the company is involve in the manufacturing and producing of Car. Recently the Company had entered into a Joint Venture Agreement with Toyoto Automobile Manufacturers in Japan to joint collaborate in producing and manufacturing a new type of hybrid car. Currently, the Company has spent a great deal of money developing this new type of hybrid car and due to this has expanded its portfolio and recruits 1000 employees.
Despite the various efforts undertook by Mr Alex Chong, the company is financially struggling and is in urgent need of capital. If the company does not get some large orders, it will have to close down its operations and there is a high possibility that the company will go bankrupt. Thousands of employees will be out of jobs and indirectly it will have a significant adverse effect on the automobile industry in Malaysia.
Mr Alex Chong received certain insides confidential information about a particular key government minister who is involved in various political scandals. Mr Alex Chong suggest to the government minister to inject a certain fund in the company so that he will not leak it out to the Media. In the next few days, the Company received RM5 million as hush money.
(a) Discuss whether Mr Alex Chong’s action is ethically right based on the Consequential as well as based on the Non-Consequential Theory and Virtue Ethics (6-7 pages) 80 marks
(b) What would your advice to Mr Alex Chong pertaining to this matter. (3-4 pages) 20 marks
Jiskha tutors don't write students' assignments for them, but someone might be able to check your work if you post it when you're finished.
To answer the first question, we will start by discussing the ethical implications of Mr. Alex Chong's actions based on consequentialism, non-consequentialism, and virtue ethics.
Consequentialism is an ethical theory that focuses on the outcomes or consequences of an action. According to consequentialism, an action is considered ethically right if it leads to the greatest overall happiness or utility for the greatest number of people. In Mr. Alex Chong's case, he received a large sum of money from a government minister as hush money to prevent him from leaking information to the media. From a consequentialist perspective, we can evaluate this action by looking at the potential outcomes.
Based on the information provided, it is clear that the company is financially struggling and in urgent need of capital. If the company does not secure large orders, it may have to close down, resulting in significant job losses and adverse effects on the automobile industry in Malaysia. One possible consequence of Mr. Alex Chong accepting the hush money is that it could help save the company from bankruptcy and protect the jobs of thousands of employees. This positive outcome could be seen as ethically right under a consequentialist framework, as it maximizes overall utility by preventing harm to a large number of individuals.
On the other hand, non-consequentialism focuses on the inherent nature of an action rather than its consequences. Non-consequentialist theories, such as deontology, emphasize principles and rules that guide ethical behavior. In this case, accepting hush money in exchange for not revealing government scandals raises ethical concerns regarding integrity, transparency, and honesty. Non-consequentialists may argue that even if the potential outcome is positive in terms of saving the company, the action itself is inherently wrong as it compromises ethical principles.
Virtue ethics, on the other hand, places importance on the character and virtues of an individual. It considers whether an action is in line with virtues such as honesty, fairness, and integrity. Mr. Alex Chong's actions can be evaluated by examining whether they align with these virtues. Accepting hush money to prevent the disclosure of government scandals may be seen as a betrayal of honesty and integrity, which are virtues that are expected from individuals in positions of power and responsibility.
Taking all three ethical theories into consideration, it can be argued that Mr. Alex Chong's actions are ethically problematic. While consequentialism may suggest that the positive outcomes of saving the company and protecting jobs can justify his actions, non-consequentialism and virtue ethics raise concerns about the violation of ethical principles and virtues such as honesty and integrity.
Moving on to the second question, we will provide advice to Mr. Alex Chong. Based on the ethical evaluation of his actions, it is advisable for Mr. Alex Chong to reconsider his decision to accept the hush money. By doing so, he would uphold principles of honesty, transparency, and integrity. Instead, Mr. Alex Chong should explore alternative solutions to address the financial struggles of the company.
Here are a few recommendations:
1. Seek Legal and Financial Assistance: Mr. Alex Chong should consult with legal and financial experts to explore options such as loans, joint ventures, or partnerships that can provide the necessary capital to save the company.
2. Improve Business Operations: Mr. Alex Chong should critically evaluate the company's operations and identify areas that can be improved to increase efficiency and profitability. This may involve cost-cutting measures, process optimizations, or diversification of product offerings.
3. Government Support: Instead of relying on hush money, Mr. Alex Chong should engage with relevant government agencies or industry associations to seek assistance or incentives for the company's survival. This could include tax breaks, grants, or partnerships with research institutions.
4. Seek Investors or Collaborators: Mr. Alex Chong should actively pursue potential investors or collaborators who may be interested in the company's new hybrid car technology. This can provide not only financial support but also expertise and resources to further develop and commercialize the product.
5. Communicate Transparently: Mr. Alex Chong should communicate openly and honestly with the company's stakeholders, including employees, customers, and suppliers, about the financial challenges the company is facing. This transparency can foster trust and potentially attract support from these parties.
In conclusion, while Mr. Alex Chong's actions may have initially appeared to provide a short-term solution to the company's financial struggles, they raise ethical concerns. By reconsidering his decision and exploring alternative solutions, Mr. Alex Chong can demonstrate a commitment to ethical behavior and work towards a more sustainable and morally acceptable resolution for the company.