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Case Study
Business often behaves in an irresponsible manner often referred to as corporate scandals. A
scandal is an occurrence of public crisis involving some real or apparent wrong doing that
becomes subject to publicity and public scrutiny. The type and magnitude of scandals varies and
can involve illicit behaviour of an individual manager or corporate large-scale corporate conduct.
Sometimes a scandal involves the inappropriate activities of an entire industry and, for some,
business generally is considered to be involved in scandalous behaviour, for example, earning
excessive profits or overly generous executive compensation.
The influence of scandals varies. They often bring problems to light which results in change in
corporate practices. They may result in government actions leading to increased regulation.
Media play a major role in disclosing and analyzing scandals which may give the impression in
society that irresponsible behaviour is more common than it really is.
Nevertheless, business irresponsible behaviour seen to occur on a regular basis and should have
some lessons or insights for business management, owners, governments or other stakeholders
that would reduce the frequency of occurrence. Maybe by studying irresponsible behaviour
business corporations, executives and students can concentrate the mind on ethical behaviour in
the business setting.
Something can be learnt from past business scandals and it is important to understand why
business irresponsibility occurs.
In no less than 500 words, briefly describe a company that has undergone a scandalous incident
and then respond to the applicable questions.
1. What stakeholders influenced and/or were influenced by the incident?

2. What were the ethical issues involved? (An ethical issue is defined as a situation in which
an individual or corporation must reflect upon competing moral standards and/or
stakeholder claims in determining what is the moral appropriate decision or action.) 3. What ethical approaches could have been applied?

4. Why did managers make the morally inappropriate decision?
5. What motivated them to make the decision?
6. What were the consequences for all stakeholders?


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