Question 1This question concerns the links between business ethics, reputation at corporate level and organisational success. Consider the following observation from the case study, then answer the question that follows:When contacted about the matter, the executive directors of Dithaba said that the company cannot accept any responsibility for the bridge’s collapse and referred all queries to the municipality.Assuming it is subsequently discovered that Dithaba Construction is 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 organisational success. (Refer: Chapter 9)How will the employees perceive the CEO and the HR director after these two directors instructed the managers and employees not to speak about the bridge’s collapse? Explain your answer in the context of the directors’ reputations, and respect for the directors by the employees. (Refer: Chapter 9)Consider the following remarks, based on the case study, then answer the question that follows: The CEO and HR director instructed managers and employees not to speak about the bridge’s collapse, while the COO (together with the other executive directors) blamed the company’s engineers and foremen for the bridge’s collapse. This is despite the obvious indication that the bridge’s collapse was a result of the executive directors’ weak governance of the company and not taking the quality of construction projects seriously.State at least three reasons why the executive directors are failing to support the ‘ethics-based facilitator’ of ethical leadership in Dithaba Construction. (Refer: Chapter 10)Describe, in short, how the executive directors should have applied each of the following factors to enhance trustworthiness in their leadership in relation to the construction process and in the collapse of the bridge:i) Openness ii) Competence ii) Integrity iv) Benevolence. (Refer: Chapter 11)Question 1 has been formulated from the content of chapters 9 to 11 in Business Ethics, Rossouw & Van Vuuren, Oxford University Press South Africa, 6th edition.

Question

Question 1This question concerns the links between business ethics, reputation at corporate level and organisational success. Consider the following observation from the case study, then answer the question that follows:When contacted about the matter, the executive directors of Dithaba said that the company cannot accept any responsibility for the bridge’s collapse and referred all queries to the municipality.Assuming it is subsequently discovered that Dithaba Construction is 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 organisational success. (Refer: Chapter 9)How will the employees perceive the CEO and the HR director after these two directors instructed the managers and employees not to speak about the bridge’s collapse? Explain your answer in the context of the directors’ reputations, and respect for the directors by the employees. (Refer: Chapter 9)Consider the following remarks, based on the case study, then answer the question that follows: The CEO and HR director instructed managers and employees not to speak about the bridge’s collapse, while the COO (together with the other executive directors) blamed the company’s engineers and foremen for the bridge’s collapse. This is despite the obvious indication that the bridge’s collapse was a result of the executive directors’ weak governance of the company and not taking the quality of construction projects seriously.State at least three reasons why the executive directors are failing to support the ‘ethics-based facilitator’ of ethical leadership in Dithaba Construction. (Refer: Chapter 10)Describe, in short, how the executive directors should have applied each of the following factors to enhance trustworthiness in their leadership in relation to the construction process and in the collapse of the bridge:i) Openness ii) Competence ii) Integrity iv) Benevolence. (Refer: Chapter 11)Question 1 has been formulated from the content of chapters 9 to 11 in Business Ethics, Rossouw & Van Vuuren, Oxford University Press South Africa, 6th edition.

Answer 1

Question 1:

1. The impact of denying responsibility for the bridge collapse on Dithaba's ethical reputation and organisational success could be significant. By not accepting responsibility, the board is displaying a lack of accountability and transparency, which can damage their ethical reputation. This can lead to a loss of trust and credibility among stakeholders, including clients, investors, and employees. Ultimately, this can result in a decline in business opportunities, financial losses, and legal implications for the company.

Factors that could threaten organisational success in this scenario include:
- Loss of trust and credibility among stakeholders
- Damage to the company's reputation and brand image
- Legal ramifications and potential lawsuits
- Decrease in customer loyalty and trust in the company's products or services

2. The employees are likely to perceive the CEO and HR director negatively after being instructed not to speak about the bridge collapse. This can be seen as a lack of transparency and honesty from their leaders, which can erode trust and respect. Employees may also feel disempowered and demotivated when their concerns and feedback are not taken seriously by the company's leadership. Overall, this can lead to a toxic work environment, low morale, and decreased productivity.

3. Three reasons why the executive directors are failing to support the 'ethics-based facilitator' of ethical leadership in Dithaba Construction include:
- Fear of consequences: The executive directors may be afraid of the potential legal and financial implications of accepting responsibility for the bridge collapse.
- Ego and pride: The directors may be unwilling to admit their mistakes and take responsibility for the failure, as it could damage their personal reputation and egos.
- Lack of ethical leadership training: The directors may not have been adequately trained or educated in ethical leadership principles, leading to a lack of awareness and understanding of the importance of ethical decision-making.

4. To enhance trustworthiness in their leadership, the executive directors should have applied the following factors:
i) Openness: The directors should have been transparent about the bridge collapse, openly acknowledging the mistake and communicating with stakeholders about the actions being taken to rectify the situation.
ii) Competence: The directors should have demonstrated their expertise and competence in managing construction projects, ensuring that proper procedures and quality control measures are in place to prevent such incidents.
iii) Integrity: The directors should have acted with integrity, taking responsibility for their mistakes and making ethical decisions that prioritize the well-being of all stakeholders involved.
iv) Benevolence: The directors should have shown a genuine concern for the welfare of their employees, clients, and the community affected by the bridge collapse, taking proactive steps to address the situation with empathy and compassion.