Business Ethics Task 1 (C717 – FZP1): Task 1

Organizational Ethics and Corporate Social Responsibility

Western Governors University
Feb. 22, 2025
A.
1. Utilitarianism is an ethical theory that bases right from wrong on the action’s
outcomes, focusing on actions that create the greatest good for the greatest
number. It is the idea that the most ethical action is the one that produces the
greatest good. In business, utilitarianism acts as a guide that encourages
maximization of positive outcomes for stakeholders while minimizing harm.

2. TechFite initially committed to supporting the city of Dellberg during a presentation

to the Dellberg City Council. They made claims that they would sponsor local
events, support youth leadership initiatives, and to use environmentally conscious
practices. TechFite has reneged on their commitments, causing waning support
from residents.

a. TechFite has failed to deliver on its promises of supporting the Dellberg

community through sponsorships, youth leaderships, and investing in local
infrastructure, creating ethical concerns amongst stakeholders. The lack of
support from TechFite contradicts the company's culture of actively
participating in the community.

b.
o Employees of TechFite are aware of the company’s failure to fulfill
the promises of community involvement. This is likely causing
employees to view the company as dishonest, creating resentment
and discord in the workplace.
o Dellberg residents are disappointed in the lack of community
participation by TechFite. Dellberg residents supported the
development of TechFite in their community because they trusted
TechFite would fulfill their commitments and believed it would
improve their economy. TechFite's lack of community engagement
has led to distrust, dissatisfaction, and complaints from Dellberg
residents.
 c. TechFite can apply utilitarian principles to this situation by prioritizing the
community of Dellberg. Due to the company’s budget constraints, they can
use a phased approach to community involvement. TechFite can begin by
supporting smaller community events that do not carry a heavy financial
burden and increase their activity as they become more financially stable.
To lessen tension and disappointment with stakeholders, TechFite should
communicate its amended plan in a new presentation to the community.
This good faith involvement will show the community that TechFite is still
committed to community participation. This plan maximizes good through
the community and minimizes financial hardships to the company while they
continue to build the business.

3. Upon hiring, TechFite promised employees full-time, 40-hour work weeks but later
reclassified many of them as part-time. This decision not only cut working hours,
and therefor employee paychecks, but also disqualified the affected employees
from receiving benefits associated with full-time employment status.

a. This act is an ethical issue because it opposes TechFite’s cultural claims of

employee empowerment and collaboration. When hired, employees
expected, and counted on, full-time employment along with benefits
associated with that status. The reclassification of employees to part-time
status jeopardizes their financial security. This can lead to decreased
productivity and potentially affect retention and recruitment in the future.
Distrust and dissatisfaction will continue to grow amongst TechFite
employees and the Dellberg Community as a whole.

b.
o Employees who have been reclassified to part-time status are now
burdened with financial insecurity. Both in part due to decreased pay
checks and lack of essential benefits such as health care and
retirement plans.
 o With the development of TechFite, residents of Dellberg had great
expectations for economic expansion in their community. The lack of
concern for employee wellbeing has resulted in increasing doubt in
regard to TechFite’s claims of commitment to their community.

c. Utilitarianism suggests that by adjusting its employment structure and show

that it is prioritizing its employee’s well-being, TechFite can re-establish
confidence in the workplace and amongst stakeholders. To combat budget
constraints and restore employees to full-time status, TechFite can cut
bonuses that top executives have continued to receive while hourly
employees suffered. This approach would ensure financial stability of the
company while restoring the trust of stakeholders and re-aligning its ethical
commitments.

B.
 Executive Compensation Policy
 Community Engagement Policy

a.
o TechFite’s corporate policies states executive compensation is based on
performance and specific goal achievement. This compensation strategy
aligns with the organization’s culture of employee empowerment. Creating
specific metrics and goals motivates executives to choose options that are
more likely to result in higher productivity and efficiency and build long-term
success for the organization and its stakeholders.
o This policy also states executive rewards may be prioritized over employee
benefits and community initiatives. This policy contradicts TechFite’s cultural
claims of employee empowerment and community participation, calling into
question their ethical standards.
 b.
o The policy of community engagement recognizes the need for community
involvement by allocating a discretionary budget for activities such as
sponsoring local events and providing youth leadership programs if
profitability is met. By providing this allocation for community participation,
TechFite is aligning its policies with its culture.
o The policy also states the organization reserves the right to cancel, without
prior notice, commitments made during public presentations if financial or
strategic needs call for it. This lack of communication and deceitfulness is
unethical and will create distrust between the company and the community.
The caveat does not align with the organizations culture to be active in
community participation.
C.

Corporate Social Responsibility is how a company considers its business operations

regarding environmental and social wellbeing rather than only considering its own
profits.

CSR is important for TechFite because it can affect its reputation in a positive way
or negatively if not used. By practicing CSR TechFite is more likely to attract and
retain quality employees. Employees will benefit from CSR by receiving higher
wages and benefits, aligning with the company’s culture of empowering its
employees. CSR would show the social responsibility of the company by providing
promised local sponsorship and infrastructure to Dellberg.
This positive perception that is associated with CSR will help TechFite earn the
respect and business of the Dellberg community, leading to increased profitability.
TechFite’s reputation has been harmed due to their lack of CSR. The community of
Dellberg has lost trust in TechFite due to their failure to deliver on promises made
that would benefit the community. Employees have grown dissatisfied with the
company due to the reduction of hours resulting in disqualification of benefits.
Also, creating turmoil in the company is the lack of equality in the decision to
 continue providing executives with bonuses while hourly employees are
reclassified as part-time, therefor losing wages.

1.
Tech Fite promised the community it would bring full time jobs but did not uphold
that claim. The company states they are renowned for workplace collaboration and
employee empowerment. To maintain those claims and regain the trust of
employees, TechFite will need to demonstrate their commitment by cutting
bonuses awarded to executives and reinstating full-time status and associated
benefits to their employees.

a. Restoring employees to full-time status will show TechFite’s commitment

to its employees. This act will boost workplace morale and help to
rebuild employee trust. If TechFite continues of this path of positive
CSR, it will improve its reputation to one that attracts top talent.

2.
For TechFite to align its commitment to community engagement it needs to begin
by fulfilling its promise of youth leadership development.

a. TechFite states their company culture strongly emphasizes community

participation and specifically states they are renowned for their
commitment to leadership development. Its failure to uphold its originally
promises has hurt its reputation with Dellberg residents. By specifically
allocating funds for youth leadership development and following through
on its promises, TechFite can establish a stronger relationship and
partnership with the Dellberg community.

3.
TechFite should discuss infrastructure investment opportunities at another city
council meeting. Then determine environmentally responsible methods to support
the investment.

a. This course of action will allow TechFite to develop a working

relationship with the community ease the burden of the community while
boosting the local economy. By working with the Dellberg community
and mutually agreeing on a course of action, TechFite will show it is a
socially responsible organization. By investing in local infrastructure in
environmentally responsible ways, TechFite will align its operations with
its stated values.