Business Plan-Dilemma Report-Free Essay

Executive Summary


This report is to present CAN’s dilemma in this period of time. Our problem is “Facing with sensitive case of sexual harassment”. In this dilemma report, we would like to analyze our detailed problem, advantages and difficulties that company has to face up with when solving this situation. Instead of comparing normal factors such as costs and benefits that we can gain, decision makers will carefully evaluate optional choices with moral, ethical intensity and situation influences. Managers will make final decisions based on those researches and evaluations. Moreover, we also carry on referencing other companies’ solution in the same situation. We found out that this case could happen in any companies with different level. Decision makers of CAN want to choose option number 4 which is verbally warn Butch and Tom and place a note of reprimand in their personnel files stating any further problem in this area will result in their termination. In our opinion, it is the best choice because we want to give one more chance for Butch and Tom, also believe in personality of our employees. It also cost the cheapest fee with $10,000 and company will not lose two valued workers. Moreover, it will cause smaller probability of legal actions. Our situation with solution may become very useful suggestions to other companies













Table of content
I. Introduction and problem identification……………………….…………………………..4
II. Ethical model issues……………………………………………….………………………….4
1. Moral intensity……………………………………..……………………………………..……4
2. Ethical sensitivity……………………………...………….………………….………………..4
3. Situation influences……………………………………………………………………...……5
III. Stakeholders: (including Appendix of Ecosystem)……..……………………………….5
1. Internal stakeholder………………………………………………………………………....5
1.1 Workers……………………………………………..……………………………………5
1.2. Butch and Tom……………………………………………………..…………………...5
1.3. Financial manager…………………………………………………...…………………6
2. External stakeholders:…………………………….……………………….………………6
2.1. Competitors……………………………………………………….……………………..6
2.2. Rebecca Meeker……………………………………………….…....………………….6
2.3. Legal authorities…………………………………………………................................6
2.4. Organisation of women’s rights protection…………………………..……...………..6
V. Options analysis…………………………………………………….………………………….6
Option 1: “Do nothing”…………………………………………..……………………….……..7
Option 2: “Fire Butch and Tom”……………………………………...………...………………7
Option 3: “Suspend Butch and Tom for two weeks without pay”……………..……….…....7
Option 4: “Verbally warn the two men and place a note of reprimand in their personnel files stating any further problem in this area will result in their termination”………………………………………………………………………………….…..8
Option 5: “Informally caution the two men”………………………………….…………….….8
V. Decision made: ……………………………………………………………….…….………….8
1. The impact of this decision on CAN company………………………………....………….9
2. The impact of this decision on the external environment………….………….…..….…..9
3. Recommendation with the disadvantages of the decision……………………….……...10
VI. Conclusion……………………………………………………………………………………...10
VII. Reference……………………………………………………………………………………..11



I. Introduction:
CAN Joint Stock Company is working in the plastic industry with two types of product that are Lego and Barbie. However, we realize that our turnover for the administrative office staff in our company is three times the industry average. The significant factor firstly was thought that due to the entry-level, minimum-wage, and clerical. We raise this question for Lee, our personnel director. She conducted interviews with our staff, plus with people who just leave in the last month to find the reasons. Surprisingly, in the interview with Rebecca, she complained about 2 employees who laughed at and talked about women with sensitive fields as a joke. It made she think that their behavior borders cross sexual harassment. Furthermore, Rebecca wants to make a lawsuit and our company may have bad effects of it. . The manager is in the dilemma because Butch and Tom are two valued employees. On the other hand, Rebecca has her right to sue the disturbed attitude of these two guys However, some people did not consider this action of Butch Pilson and Tom West seriously, not seems to hurt or disturb any one. Our problem that we have to face here is whether doing nothing or finding another way to avoid lawsuits from not only Rebecca but also from other employees. The company will lose a large amount of money if there is a sexual harassment lawsuit.
II. Ethical model issues
1. Problem identification
Moral intensity is a degree of ethical demands which affect mostly on ethical decision. With this case, CAN will face up with the sexual harassment situation which leads to the high rate of turnover as well as the lawsuit. Inevitably it also results in serious consequence with many compromises and attracts the attentiveness of other employees with social community. Moreover, it also influences badly on our brand, the customers and employees’ perception about CAN. It makes marketing difficulties in the future. CAN’s products are toys for children. This case is very sensitive and particularly being avoided with them in Vietnam. As a result, it involved many people, not only customers and stakeholders but also government and public.

2. Ethical issues:
2.1. Moral intensity
Moral intensity is a degree of ethical demands which affect mostly on ethical decision. With this case, CAN will face up with the sexual harassment situation which leads to the high rate of turnover as well as the lawsuit. Inevitably it also results in serious consequence with many compromises and attracts the attentiveness of other employees with social community. Moreover, it also influences badly on our brand, the customers and employees’ perception about CAN. It makes marketing difficulties in the future. CAN’s products are toys for children. This case is very sensitive and particularly being avoided with them in Vietnam. As a result, it involved many people, not only customers and stakeholders but also government and public.
2.2. Ethical sensitivity
Ethical sensitivity will determine the object such as who is involved, what actions to take, and what possible outcomes can happen and affect to the company’s opportunity. However, in the fact of this situation, there is no proof to determine the main reason of the high turnover rate for our dilemma. Therefore, it is difficult to state the ethical sensitivity clearly.
2.3. Situation influences
In this situation, those 2 men may be accused. It will put much pressure on not only two of them but also company as a whole. The implication here is decision maker has to settle on how much they have to pay as well as effects of this on CAN. They also need to find out how company can solve problems with Butch and Tom.

III. Stakeholders: (including Appendix VIII of Ecosystem)
1. Internal stakeholders
1.1 Workers
In our company, workers are divided into 2 groups: one is support for the joke of Butch and Tom and consider it as harmless and one side against and feel unendurable with this game. Although Tom and Butch are two of the best employees as well as well- liked ones, most of their colleagues feel very unpleasant and cannot ignore this factor. That is one of reasons which leads to the number of employees quit the job increase. As a result, the turnover rate is three times higher than the average level of industry.
Those 2 groups of workers have big influences on decisions making of CAN company. If company punished too abrasively or too lightly, workers will feel doubted and unfair. They will not believe on Managers anymore. At this time, the number of employees leaving their jobs also increases. Company has to face up with a big loss in human resources. The pivotal factor here is to reduce the disappointment of workers as much as possible and also make them trust about the CAN’s decisions. To do this, company needs to compromise and guarantee that sexual harassment problems will no longer disturb other employees in the future tense.
1.2. Butch and Tom
Even the jokes of Butch and Tom are harmless, it still influences badly on people in both of 2 sides. With people who are against and feel inconvenient, they may cannot focus and finish their work with the highest productivity. Therefore, they may change the job. On the other hand, it does not seem to be unaffected with workers who enjoy with their funny stories. Because on concentrating on laughing and joking, their working productivity will reduce and it has big effects on products capacity as well as waste money of company.
However, if managers of CAN fired them, there would be many involving problems. Firstly, they are among best workers. Therefore, it will take long time and money to train employees with same capacity. Furthermore, company has to pay pension fees for them. In the case of their opposing to our firing decision with the basic ground of wrongful demission, we may have to pay more than $30,000 in regulation term.
1.3. Financial manager
Because this case involved much in finance, financial manager plays an important role, particularly when company may be sued and has to pay large amount of legal costs. In this situation, our company will get loss.

2. External stakeholders:
2.1. Competitors
When our company has this trouble, it is a good chance for 4 competitors increase their market share and overwhelm CAN. They also may try to support for suing CAN as well as pushing employees against our decisions and go on strike. They can rumor bad things about our unfair treat of company with employees. It will cause bad effects on our brand name as well as on customers’ perspective.
2.2. Rebecca Meeker
Rebecca is an employee in the company and she complains much about the jokes of Butch and Tom. She also considers one lawsuit unless CAN has any strong solutions to solve this problem. If she makes a lawsuit, out company will have to pay a large amount of money even we can win or not. This payment may be up to $50,000, including loss fees if we fail or the lawyer hiring costs. Additionally, the reputation and fame become worse in government and customers’ mind.
2.3. Legal authorities
This case involves in sexual harassments which is one of sensitive situation. As I mentioned above, if CAN managers cannot make a clear and persuasive decision, not only employees and public dissatisfy with company but also the judgment has reasons to against and fail us on the court. At the time, legal costs will be charged very high.
2.4. Organisation of women’s rights protection
This case is not stop with only those stakeholders above. Organisations of women’s rights which appear in all over the world protection will join. It may have no cost to pay for this organization, however, our brand and reputation in the world will be affected and as a result, our company will lose.
V. Options analysis:
Option 1: “Do nothing”
If choosing the first option, the company can avoid ruining the careers of anybody because of accusing the individuals of sexual harassment and suing the company for defamation of character. In addition, the company will not lose any money and still can preserving the moral in the short run.
In contrast, the turnover problem will continue and the moral of the workforce is impacted. The female employees may tell this issue with others and what people will think about the manager of the company. “Doing nothing”, the Board of Manager will have to face up with a large probability of legal action due to the unsatisfactoriness of the female workers and Rebecca. The government will take some actions if the conflict between the manager’s decision and employees’ interest can not be solved and Rebecca sues.
Option 2: “Fire Butch and Tom”
Following the option 2, this solution seems to have higher moral intensity and as a result, the turnover rate will be reduced significantly. Moreover, this one will support the company’s responsibility on behavior like this. Due to applying correctly the company’s policy, there is no pressure for the Board of Managers. In addition, this option will avoid the company from the lawsuit because this option can satisfy Rebecca and she will not sue the company for sexual harassment.
On the other hand, this option still exist a number of disadvantages. Firstly, it creates differences in the mind of employees as each chose a side because some employees might not happy as the unclear reason for firing. And more important, another legal action can be taken from those two men because of wrongful dismissal. The cover severance pay and pension donations will cost of $15.000 and more cost of $40.000 if Butch and Tom sue. Lastly, there are the difficulties in finding the new employees to replace due to these two men are among the most effective and efficient employees.

Option 3: Suspend Butch and Tom for two weeks without pay
In this case, CAN company can gain some benefits if using this option. First of all, as regard to ethical and moral intensity, the company is able to restrict the influence to the people involved, as well as partially remain the reputation with the outsiders. Secondly, to some extent, it can not only satisfy a number of stakeholders but also reduce the opportunity of sexual harassment to happen again. More importantly, the pressure of the lawsuit will be slightly eliminated
In contrast, CAN company also suffers some negative effect, which is caused by this behavior. In fact, although it may positively affect the other stakeholders, there is a chance that the quality and productivity of both Butch and Tom will decrease due to their not being motivated. In addition, the company will fall into a tough financial situation. In other words, there occurs a charge of $20,000 for lawsuit, plus with the legal defending cost of $35,000. Furthermore, the conflict with Financial manager can happen due to a huge amount of money spent for legal issue.
Option 4: Verbally warn the two men and place a note of reprimand in their personnel files stating any further problem in this area will result in their termination.
By applying this option, CAN company may improve the efficiency to overcome this circumstance. Indeed, by putting the pressure of termination on these two employees, the firm can prevent similar behavior from happening again within office. Moreover, this solution may be essential for the next operating process of the company because it not only charge a lower burden of finance but also promote the all internal stakeholders to
remain the productivity.
On the other hand, this option has lower standard of moral and ethical intensity. Therefore, this problem may not be entirely handled, as well as create negative influence on Butch’s and Tom’s moral. Another concern is that apart from the charge of $10,000 for legal issue, the firm’s attitude will be against by lawsuit.
Option 5: “Informally caution the two men”
Option 5 seems to have low moral intensity because it provides a positive situation for the stakeholder. The company does not guarantee the rights of all employees are the same. However, this solution can satisfy both managers and these two men. It is clear that there is the decrease in the pressure in the finance manager and the company can save up to $5.000.
On the contrary, this option only offers the disciplinary actions for Butch and Tom and the probability expected for changing is very low. The employees may not make happy if the company does not do some visible actions. Furthermore, if this issue continues, the female workers may tell the others this case and the turnover rate still keep in the high rate. The dissatisfaction of Rebecca and some others can easily lead the lawsuit against the company. If a suit is field, the company is easy to lose.
V. Decision made:
As Hellriegel, Slocum and Woodman (1995, p.379) state, “Managerial decision making begins with a recognition or awareness of problems and concludes with an assessment of the results of actions taken to solve those problem”. Therefore, after careful consideration, CAN company decides to choose option 4: “Verbally warning these two workers”, as the best for this circumstance. Specifically, Tom and Butch commit this mistake the first time. Thus, there is not enough clear proof which against that manner. Additionally, the company can not put them under tough penalty because most labor consider verbal dueling to be enjoyable. Simultaneously, the firm can keep these two valued workers to ensure the productivity of the next quarters
1.The impact of this decision on CAN company:
First of all, this situation will force the company to put more effort on managing the subordinates’ action. To be specified, it is possible for the firm to evaluate the pros and cons of the employees. Moreover, CAN also has an opportunity to improve the human resource management system so as to work more strictly and efficiently. Consequently, this action will bring more benefits for the whole company’s future performance.
Secondly, the verbal warning may be suitable in this case because it can be seen as the motivation for workers’ productivity. In fact, the threat of being terminated will limit the two employees’ bad behavior and promote them to concentrate more on their work. Furthermore, it may gain satisfaction for the other stakeholders ( staffs, managers) and encourage them to work effectively. Obviously, the operating process of the company will be incessantly improved if there is enough support for labor workforce.
On the contrary, there are also negative impacts that are created for the company. To be specific, the company has to face with the probability of losing goodwill. Indeed, this decision may not satisfy a number of both current labor and turnover employees. They can consider that the firm’s policy is still not enough to limit this behavior, and this situation cannot be completely rejected. In addition, the company also has to face with the risk of taking place another amount of turnover workers if sexual harassment behavior is not utterly controlled.
2.The impact of this decision on the external environment:
It is the fact that sexual harassment is harmless; however, it can gain bad images to both company and the external society. If these two employees have this kind of behavior inside the company, there is a possibility that they continue to express to the outsiders. As a result, by keeping and controlling Butch and Tom under the tough discipline of the company, their action as well as consciousness may change positively.

3. Recommendation with the disadvantages of the decision:
In order to ensure the success of this decision, initially, with an amount of $10,000 for legal cost, the company tends to utilize a small proportion from the own capital. Besides that, CAN also decide to reduce the money spent on other departure (for example: we can lay off some workers, who do not suit the company’s demand). As a consequence, the firm can apparently save money for the future performance, as well as remain the stable development for financial issue.
In term of the reputation, CAN will try to limit the level of bad influences and guarantee about moral issue by putting forward strict discipline in order to control the staffs’ behavior. What is more, we can offer some training program to help them acknowledge and control their individual manner. The firm will concurrently improve the quality of the other employees to carry on the high productivity, in case the two workers ( Butch and Tom) should be dismissed.
VI. Conclusion:
In conclusion, following the decision making process, the managers has considered both two sides that is the advantages and disadvantages of the given solutions. After determining the possible effect of these options, the managers will decide which one will be the best choice for the company. Although the CAN company will lose an amount of money, they can organize a better working environment and improve the relation between managers and employees. As a consequence, the turnover rate will be decreased and satisfies the right of all employees.





















VII. Reference:

• Equal Employment Opportunity Comission ( EEOC) 2001, Preventing Sexual Harassment, a fatc sheet for employees, viewed on 9th December, 2008, < http://www.dotcr.ost.dot.gov/Documents/complaint/Preventing_Sexual_Harassment.htm>
• Hellriegel, D, Slocum, JW & Woodman, RW 1995, Organizational Behavior, 7th edn, West Publishing Company, New York.
• O’Connor, J &McDermott,I, 1997, The art of System Thinking, Thorson, Great Britain, http://www.innovationlabs.com/sys_thinking.pdf, viewed on 9th December, 2008.
• Wadsworth, L.L 2002, The impact of moral intensity dimension on ethical decision making, The journal of managerial issues, viewed on March 22nd, < http://www.allbusiness.com/human-resources/employee-development-problem-solving/183072-1.html>
• White,I.T 1993, Resolving an ethical dilemma, viewed on 8th December,2008, < http://www.ethicsandbusiness.org/pdf/strategy.pdf>