CHAPTER 2 BUSINESS ETHICAL DECISION

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Business Ethical Decision
Abstract
Ethics is a term that describes a set of principles that helps people to distinguish between right and wrong and to understand the way in which they are to conduct themselves. In business, organizations find themselves in situations that require them to make critical decisions that are to be guided by the set business ethics, and it is in such a situation that Smooth Ride Tires finds itself. Smooth Ride Tires is in a dilemma where it has to decide whether to move to Honduras where it will have the advantage of a cheap labor force, relaxed environmental laws and government support or to maintain its facilities in America where it will continue to experience hard economic times thus low profits which might lead to its collapse. This paper will apply the ethical decision-making process to help Smooth Ride Tires to develop a socially ethical policy that will allow the firm to make ethical decisions and to help it increase its profits.
Smooth Ride Tires is experiencing hard economic times where their revenue is too low to cover all their costs. The management is considering moving the facilities to Honduras where it will benefit from the cheap labor force that is available, the lax environmental laws and the opportunity of an increased profit margin but at the same time, the management wants to remain ethical in its operations. To do this, the company will have to apply the steps of …