Ethical behavior in business Essay Example | Topics and Well Written Essays - 500 words

Ethical behavior in business - Essay Example This incident is a serious matter that should not be treated lightly. To clean up the mess the company has to invest millions of dollars, but the damage caused by the spillage hurt the ecosystem and killed thousands of animals. Big Dirty Oil faces an ethical dilemma in regard to how the firm should approach the problem. This essay includes the view and perspective of three stakeholders: CEO, local fisherman, and the shareholders of the company. The CEO of a company is the person that has the most power within an organization. When a firm faces any controversial situations the CEO must act as the spokesman of the organization. The oil spillage that occurred off the coast of British Columbia and Alaska was a major crisis that had to be attended to immediately. The CEO of the company must find a balance between doing the right thing and maximizing shareholders’ wealth. Maximizing shareholders’ wealth is the goal of all publicly traded companies. In light of the sensitive situation the CEO should have reacted in a different manner. The current position of the CEO is that the incident was a tragedy and he offered two million dollars to aid in the clean up. The proposal of the CEO was outrageous due to the fact that it could cost hundreds of millions of dollars to properly clean up the area. The CEO acted in an unethical manner. Instead of facing up to the problem he dismissed the protests against the company by ca lling the protesters â€Å"the outpourings of Greenies and other fanatics.† The reality was that the company had polluted thousands of square meters of water and killed thousands of fish and wildlife in the region. These creatures no longer had a habitat to live. The stance taken by the CEO was wrong. He cared more about the quarterly profits of the company than about the well being of thousands of animals and hundreds of fishermen that depended on fishing in the region everyday to support their families. The fishermen in