Ethical Case Study Facts

Running head: ETHICAL CASE STUDY 1EthicalCase StudyInstitutionalAffiliation

Facts

  1. Facts

  2. Eastlink has more than 1700 workers offering a range of entertainment, televisions, communications and advertising services to public, residential and public sector customers in Ontario, Atlantic Canada, Alberta, Quebec, Bermuda, and British Columbia.

  3. Eastlink is among the fastest internet providers in the Northern America.

  4. Eastlink is the first cable company in Corporation in Canada to enter the telephone market and it is the first entertainment and communication Company in the Northern part of America to combine the internet, cable, and telephone services in an entertainment and communication bundle.

  5. Eastlink has been identified as one of 50 best-managed companies in Canada for seven years in a row.

Ethicalissue(s)

As a CEO, I must make a recommendation that will have a positiveimpact on the investor in the Northern Ontario due to the opportunitythat is presented in the region. The deal is more than $35 millionrequired to of renovating the internet in three years. Although thedeal may affect people from in Nova Scotia because they are thehighest consumers of Eastlink products, the rationale taken isjustifiable given the great opportunities that the investor willoffer to the company.

Stakeholders(4 main ones and the reasons as to why they are the main ones)

  1. CEO (me) – I have been given the task of making recommendations to the Board of Eastlink Company and offer rational opinions on how the companies should upgrade the internet in Northern Ontario and Nova Scotia. As a CEO, I must weigh the effects of the recommendations that I make to the company and the customers of the company including myself as the CEO of the company.

  2. Northern Ontario Customers- They stand to gain from the recommendation to be made even though they are the least consumers of the company`s products. They are going to benefit on the back of the major investor that wants to strike a deal with the company.

  3. Nova Scotians- Because of the investor from Northern Ontario who wants to strike a deal with Eastlink, they are going to be negatively affected by the recommendation since the decision will allow the upgrade of the internet to begin in Northern Ontario before it proceeds to Nova Scotia.

  4. The media- The media will be affected by whatever the decision the Company will make either positively or negatively depending on the location of the upgrade. Those around Northern Ontario will benefit positively while those in Nova Scotia will be affected negatively since it will take long before the company upgrades the internet system in that region by removing the capped internet cables.

Ethicalissue(s)

Alternatives

Alternative1

Evaluate the benefit that the company will derive in the upgrade ofthe internet in the Northern Ontario as compared to those that thecompany will lose in the event of not upgrading the internet in theNova Scotia region. This will imply that the company upgrades theinternet with a section of $35 million dollars probably less thanhalf, half or more than half depending on the size of theinfrastructure in the region.

Alternative2

Evaluate the benefits that the company derives from the deal with theinvestor plus the residents of Northern Ontario and compare with thebenefits that the company will derive from the residents of NovaScotia and choose the best one. If the benefits of Nova Scotia exceedthat of Northern Ontario, then it implies that the company shouldhasten the upgrade process using a portion of $35 million dollars toprevent the loss of customers in Nova Scotia to other competitors whohave the best internet infrastructure in that region.

Forthe remainder of the analysis, I shall apply the following twoalternatives

  1. Upgrade first the internet in the Northern Ontario region using a portion of $35 million dollars and upgrade the remaining region later using the remaining portion of the amount that was estimated to upgrade the system and continue with the upgrade of Nova Scotia in 2018.

  2. The second alternative will be to hasten the upgrade of the internet in the Nova Scotia region using the portion estimated $35 million dollars that were estimated to complete the upgrade of the internet in the two regions and continue with the upgrade of Northern Ontario in 2018.

Impacton Stakeholders

Proceedwith Nova Scotia system upgrade and delay Northern Ontario until 2018

Stakeholder1

CEO(me)– As the CEO of the company, the decision that will affect thecompany will affect me in the same manner. This is because as the CEOof the company my performance is evaluated based on the performanceof the company. Upgrading Nova Scotia and leaving the upgrade of theNorthern Ontario will imply that the company will lose the deal worthmore than $100 million dollars. This will be a great loss of theopportunity. As a stakeholder of the company, probably the deal wouldhave added value to my regular income that I earn. This will not onlyaffect the company, but it will also affect me as the CEO of thecompany.

Stakeholder2

NorthernOntario residents-The decision will affect them negatively since they will have to waitfor the upgrade to the internet system until 2018. Even though theyare the least users of the company`s services, they will have to waitfor a long duration before they get an effective internet system thatis upgraded.

Stakeholder3

NovaScotians-The decision will affect them positively since they will be the firstbeneficiary of the internet upgrade. They will be the first one toget effective internet services before their counterparts in theNorthern Ontario.

Stakeholder4

TheMedia-The media will be affected both positively and negatively. Thosefound in the Northern Ontario will be negatively affected by thedecision since they will have to wait until 2018 before theirinternet system is upgraded. Those in the Nova Scotia will benefitpositively from the upgrade.

Alternative2- Proceed with Northern Ontario system upgrade and delay Nova Scotiauntil 2018

Stakeholder1

CEO-As the CEO I will benefit a lot from this decision because of theavailable deal with the investor who is from the Northern Ontarioregion. The deal will benefit both the CEO of the company and thecompany itself. As the CEO, I will benefit from the increased incomedue to increased shareholder dividend.

Stakeholder2

NorthernOntario residents– They will be the greatest beneficiary of the system upgrade morethan their counterparts in the Nova Scotia region will.

Stakeholder3

NovaScotians

Thedecision will affect them negatively since they will have to wait forthe upgrade to the internet system until 2018. Even though they arethe least users of the company`s services, they will have to wait fora long duration before they get an effective internet system that isupgraded.

Stakeholder4

TheMedia-The media will be affected both positively and negatively. Thosefound in the Northern Ontario will be negatively affected by thedecision since they will have to wait until 2018 before theirinternet system is upgraded. Those in the Nova Scotia will benefitpositively from the upgrade.

Discussionand Analysis drawing on ethical theories

EthicalEgoism

The decision to be made using the ethical egoism reflects the optionthat will benefit the company and me as the CEO of the company. Thisis because I need to consider making the rational decision because Iwill also be impacted by the decision made. If I upgrade NorthernOntario and ignore the Nova Scotia region until 2018, as the CEO ofthe company, I would have secured the deal with the investor though Iwill lose some of the benefits from Nova Scotia. The other side willaffect the company negatively. However, as the CEO I will not endurethe guilt of losing the customers in the Nova Scotia region.

Using ethical egoism, I would decide to upgrade the system in Ontarioand leave that in Northern Ontario until 2018. While this will meanthat I will lose the benefit in Nova Scotia region, I will need todeal with the guilt of neglecting the Nova Scotia region. Neglectingthe Nova Scotian region will help less impact to the company and asthe CEO of the company I will be less affected.

Utilitarianism

A decision made using utilitarianism must offer the largest group ofcustomers the best services and ignore the smallest group of theindividuals. While considering the two alternatives for the company,Nova Scotians are the largest group that benefits the company, as theCEO I have to make rational decisions. This is quite confusingbecause there is the biggest investor with the greatest opportunityfor the company in the Northern Ontario. The company will feel thelargest impact if it invests in Nova Scotia and ignores the NorthernOntario. This will, therefore, force the company to upgrade thesystem in the Northern Ontario and ignore investing in Nova Scotia.

CategoricalImperative

Using the categorical imperative, I shall apply the universal lawthat states, &quotOne shall always act rationally in a manner thatminimizes harm to an individual.&quot For the residents of NorthernOntario, the impacts felt will be minimal than to those in NovaScotia. The person that will be affected most in Northern Ontariowill be the investor since the investor has the largest deal to makewith the company. I will make a balanced, rational decision that willaffect all the parties in equal measures.

DistributiveJustice

As a CEO, I will apply distributive justice in such a way that I willmake the rational decisions that will affect all the parties fairly.All the benefits and the harms should be distributed negatively. Thiswill require hastening the process of upgrade before 2018.

VirtueEthics

Virtue ethics will help me as the CEO in my ethical decision-makingprocess. In this case, I will focus on my value of loyalty. This willimply that I will make a rational decision that will not affect myloyal customers, especially those in the Nova Scotia negatively. Thiswill imply that I have to upgrade the system in Nova Scotia first.

Decision

My final decision will be a recommendation to upgrade first the loyaland many customers in the Nova Scotia. This is because as a CEO I donot know whether the investor will continue being loyal to thecompany in future. It is good to make the decision that will affectless the loyal customers. The recommendation will be to upgrade thesystem in Nova Scotia first and wait to upgrade the system inNorthern Ontario in 2018.