Business Ethics of Tiger Automotive Essay Example | Topics and Well Written Essays - 2000 words

Business Ethics of Tiger Automotive - Essay Example The present study would focus on Tiger Automotive that has an original product that has the advantage of having the patent for a fuel-efficient device, and at the same time, the product is beneficial to the consumer as it increase the average car’s mileage by about 45%. More importantly, the patent right protects the company’s product from direct competition hence a complete monopoly in the market which means the company is a price giver. This has resulted in the product being priced at  £45 even though the total cost is  £1. The ethical dilemma is based on overpricing product. However, a manager is faced with the dilemma of maintaining the moral standard of adopting actions that would be preferable to the self-interest of the company of maximizing profits without considering the interest of the public especially the consumers. This dilemma is supported by the fact that the organisation is responsible for its corporate acts that emanates from choices and actions of human individuals, who are the primary bearers of moral duties and responsibility of the organisation and its act. This is an objective that is supported by Adam Smith’s ‘invisible hand’, which supports this as an ethical way of achieve the best self interest of the stakeholders. At the same time, Tiger Automotives has the economic responsibility of generating the greatest profits for the company and benefits for society depending on the Pareto optimality whereby the markets are fully competitive, all customers are fully informed and all external and internal costs are fully included. In the same light, Tiger Automotives has the legal requirement of taking the action that fully complies with the law. This is because the law in a democratic society represents the minimal moral standards of all the people within that society, provided it can be shown that the self-interests of the various groups including individuals, groups and organisations have been included in the formulation process. Using the requirements and responsibilities explained above, this scenario creates an ethical dilemma for the manager. Ethics as defined by Velasquez (2001) can be perceived to be the study of morality and moral standards. The moral standard that the manager is faced with is adopting actions that would be preferable to the self-interest of the company of maximizing profits without considering the interest of the public especially the consumers. By putting their interest in front of the interest of the stakeholders, it is perfect to state that the manager has a moral dilemma due to the fact that the organisation is responsible for its corporate acts that emanates from choices and actions of human individuals, who are the primary bearers of moral duties and responsibility of the organisation and its act. In any organisation, its business ethics practices should be geared towards advancing moral standards as they apply to business policies, institutions, and be havior. According to Velasquez (2001), business ethics need to include analysis of moral norms and values. As a result, its implementation should be in its practice especially in systemic and corporate issues that are ethical and are concerned with individual, society and organisations. The manager, while acting as an agent of the organisatio