ETHICAL PERSPECTIVES
& ANALYSIS

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1. Utilitarianism (Consequentialism) – “Greatest Good for the Greatest Number”

 

Perspective:

• A utilitarian approach would evaluate the potential benefits and harms of both choices, aiming to maximize overall well-being.

• The decision would be based on which action results in the greatest positive outcome for all stakeholders.

 

✅ Supporting Bypassing Compliance Audits:

• Retains a major customer, preserving jobs and financial stability.

• Avoids layoffs or operational downsizing that could result from lost revenue.

• Meets the immediate needs of the customer and avoids disruptions to their business.

 

❌ Supporting Compliance Audits:

• Protects the company from legal penalties, which could cause long-term financial harm.

• Maintains trust with other customers, suppliers, and regulators.

• Prevents ethical decay within the company, which could lead to future violations.

 

💡 Analysis:

• While bypassing audits may provide short-term benefits, the long-term risks (fines, reputational damage, loss of other customers) outweigh the immediate financial gain.

• A true utilitarian approach would likely favor enforcing compliance but encourage finding an alternative solution to retain the customer while staying ethical.

 

 

2. Deontological Ethics (Duty-Based Ethics) – “Following Rules and Principles”

 

Perspective:

• Deontologists believe that ethical actions are determined by universal moral rules, regardless of consequences.

• The company has a duty to follow compliance regulations and ethical policies.

 

✅ Supporting Compliance Audits:

• The company has a duty to uphold industry regulations and legal requirements.

• Bypassing compliance sets a dangerous precedent where rules become subjective.

• Ethical leadership should prioritize doing what is right over financial gains.

 

❌ Supporting Bypassing Compliance Audits:

• Deontology does not focus on consequences, so financial loss does not justify violating rules.

• Even if it causes layoffs or revenue loss, the company is still obligated to act ethically and lawfully.

 

💡 Analysis:

• A strict deontologist would argue that compliance audits must be upheld—violating them, even for financial reasons, is unethical.

• The company must find a way to retain the customer within ethical and legal constraints.

 

 

3. Virtue Ethics – “What Would an Ethical Leader Do?”

 

Perspective:

• This framework focuses on character and integrity rather than just rules or outcomes.

• The ethical decision is the one that demonstrates honesty, fairness, and responsibility.

 

✅ Supporting Compliance Audits:

• A company that values honesty and responsibility would never compromise compliance.

• Ethical leaders must set an example for employees and business partners.

• Long-term reputation and trust are more valuable than short-term financial gain.

 

❌ Supporting Bypassing Compliance Audits:

• Would indicate that short-term financial success is more important than ethical character.

• Sends a negative message to employees and partners, potentially leading to more ethical compromises in the future.

 

💡 Analysis:

• A virtue ethics approach would prioritize honesty, responsibility, and maintaining integrity, making bypassing compliance unethical.

• The company should negotiate with the customer or improve processes to meet deadlines without violating ethics.

 

 

4. Contractualism – “Fairness & Agreements”

 

Perspective:

• Ethics are based on fair agreements that all parties can reasonably accept.

• The company must honor contracts and industry standards that were agreed upon.

 

✅ Supporting Compliance Audits:

• The company has contracts with regulators, partners, and customers that depend on compliance.

• Other customers who expect compliance may see bypassing audits as a breach of trust.

 

❌ Supporting Bypassing Compliance Audits:

• Could be justified if the customer was originally misled about compliance timelines.

• If compliance rules were vague or not contractually binding, it may be negotiable.

 

💡 Analysis:

• The company cannot break fair agreements with regulators and other stakeholders.

• The best approach would be to renegotiate service-level agreements rather than bypass compliance.

 

 

5. Ethical Egoism – “What Benefits the Company?”

 

Perspective:

• Ethical egoism suggests that the best ethical action is the one that benefits the company’s self-interest.

• The decision should be based on maximizing long-term company success.

 

✅ Supporting Bypassing Compliance Audits:

• Retains a key revenue-generating customer, ensuring financial stability.

• Strengthens the company’s competitive advantage by offering faster service.

 

❌ Supporting Compliance Audits:

• Avoids legal fines and reputational damage, which could be worse than losing one customer.

• Maintains strong long-term business relationships with ethical partners.

 

💡 Analysis:

• Egoism might justify bypassing compliance for financial reasons, but the long-term risks outweigh the short-term benefit.

• Best solution: Seek a compromise that aligns business interests with compliance rather than risking major legal and reputational harm.

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