Why Didn’t We Know? Harvard Case Solution & Analysis

Question 01: Identify at least three actions/decisions leading to or resulting from the channel stuffing scheme that you deem to be unethical. Use the ethical analysis techniques discussed in this course.

            The first major action or the decision was taken by Greg. He proposed the shipping goods to a few of the bigger customers where he billed them, and also booked the sales. The action which was taken to actually make the channel stuffing scheme become unethical was to take the ownership and also made them return he shipment at all times. The company would also get a discount of 2%. The major purpose of this decision was to meet the quarterly sales target by channel stuffing.

            Since Mike reported the unethical behavior with in the firm, therefore, he was the first one to be made the victim. Although he might have been right with his observation, however the immediate reporting authority Sanders made Mick to work in a new state where he knew he would not be able to survive. This was on the same time when the company such an issue of channel stuffing scheme.

            The third channel stuffing scheme that is deemed to be unethical is the behavior of the CEO, Chip. Since he is the boss and the sole decision maker, he should have been proactive and should have been involved in this situation more radically.

            In fact, he was someone who did not care about the internal matters. He was more focused on revenues and profits of the company rather than presenting himself to work on the internal matters as well.

             He should have stayed aligned with the whole situation and should have handled in a positive manner. The ethical analysis technique, which can be used in the current situation, is to opt for the teleological theories.

            This type of ethical analysis technique generally focuses on the end result which is the most important thing. The leader has to make sure than the focus of the whole situation is to active the purpose and end at a positive note for all the members.

            Moreover, it should also use the utilitarianism and the altruism. The results should be based upon the result for the company and not to achieve the personal objectives for the company.

Question 02: The case states that Galvatren’s had put in place a number of procedures and policies to detect and prevent unethical behavior. Yet, many unethical decisions were made and only one person came forward to report such misconduct. Why did Galvatren's efforts at preventing unethical behavior fail?

As the case states, Galvatren has put in place quite a few methods and procedures to prevent and also detect the unethical behaviors. For instance, the company introduced the 24 hour toll free number to report violation of ethical code of conduct within the company.

Moreover, the company has also hired hire an ethical officer who is responsible for looking after any misconduct and to report it then and there. These have been some of the efforts that have been made by the management of the company to ensure that the firm does not face any unethical behaviors within it.

Why Didn’t We Know Case Solution

The efforts made by Galvatren actually failed because the company was unable to enforce the legal compliance programs and the organizational integrity programs within the company.

The two programs are rather integral in making sure that the ethical programs within the firm are fully implemented. The failure of ethical prevention programs at Galvatren was solely because the plan was implemented without executing it as per the ethical promotional programs.

Once the management decided to put in the different efforts to overcome the ethical issues at the company, it should have put in efforts to involve in the ethical programs that have been quite appropriate in implementing ethical consideration in the company.......................

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