This question concerns the link between business ethics, reputation at corporate level and organisational success
''when contracted about the matter, the executive directors of Dithaba said that the company cannot accept any responsiblity for the bridge's collapse and referred all queries to the municapality.
1.1 assuming it is subsequently discovered that Dithaba construction in indeed responsible for the collapse of the bridge, discuss the impact that the board's denial of responsibility could have on Dithaba's ethical reputation and its organisational success. your answer should include examples of factors that could threaten organisatioanal success
The board's denial of responsibility for the bridge collapse could have a significant impact on Dithaba's ethical reputation and ultimately harm its organizational success in several ways.
Firstly, the denial of responsibility could damage the company's reputation for honesty and transparency. Stakeholders such as customers, investors, and the general public may perceive Dithaba as being dishonest and untrustworthy, which could lead to a loss of credibility and trust in the company. This could result in customers choosing to do business with other companies, investors withdrawing their support, and potential employees being deterred from joining the organization.
Secondly, the denial of responsibility could also have legal implications for Dithaba. If it is ultimately revealed that the company was indeed responsible for the bridge collapse, the board's denial could be seen as an attempt to avoid accountability and liability. This could result in legal action being taken against the company, leading to financial penalties and damage to the company's reputation in the industry.
Furthermore, the denial of responsibility could also impact Dithaba's relationships with key stakeholders such as government entities, regulatory bodies, and industry partners. If these stakeholders perceive the company as being uncooperative and unwilling to take responsibility for their actions, they may be less likely to collaborate with Dithaba on future projects. This could limit the company's growth opportunities and hinder its long-term success.
In conclusion, the board's denial of responsibility for the bridge collapse could have serious consequences for Dithaba's ethical reputation and organizational success. It is crucial for companies to take accountability for their actions, address any mistakes openly and transparently, and work towards rebuilding trust with stakeholders to safeguard their reputation and ensure long-term success.