This document presents four ethical dilemma cases involving business strategy decisions. Case 1 involves strategic choices for an aging mine in Namibia and the impact on local populations, the government, and the company. Case 2 involves whether to present fabricated or accurate performance data. Case 3 involves whether to pay a bribe demanded by a union or file a complaint. Case 4 involves rationing limited rescue resources between a German tourist, local tribe leader, and two children. For each case, stakeholders, strategic choices, and impacts are outlined to help determine the best strategy into action.

1. PRESENTED BY:
Akash Khandelwal – 11070
Aayush Kr. Doshi – 11084
Kintu Shah – 11092
Tessy John – 11121
Vikas Agrawal – 11126
Monika Rao – 11099
ETHICAL DILEMMAS
BUSINESS STRATEGY

2. CASE 1: CONFLICTING
OBJECTIVES
STRATEGIC CHOICES
 Shutting the mine
 Upgradation
 Continuing the work without any changes
STAKEHOLDERS
 Local population
 Government of Namibia
 Company

3. IMPACT OF STRATEGIC CHOICES
 On local population:
 Unemployment
 Reduction of per capita income and thus degradation of
standard of living
 Mining hazards leading to risk of health and safety
 On Government of Namibia:
 Political Instability
 Fall in GDP
 Providing facilities in case of a mining hazard
 National unemployement
 Stunted development of the economy
 On the Company:
 Reputation of the parent company
 Fall in share price
 Loss of business in Namibia
 In case of upgradation, increased cost and unviability of
operations.

4. STRATEGY INTO ACTION
 The mine should be upgraded.
 Shutting the mine impacts the government and the
company adversely.
 Increased loss from complete shut down of business in
Namibia.
 Upgradation involves short term high fixed cost which can
be spread with increased operations.
 Safety of operations necessary to maintain reputation of the
company and instill trust in employees.
 Continuation of mining business important to support the
1000+ families.
 Apart from only profits and viability of business, company
must also look at its responsibility towards various
stakeholders.
 Improved technology could be used.
 Upgradation and safety checks will be beneficial for long
term business and open various opportunities not only in
Namibia but also surrounding areas.
 To conduct business, vital to win trust and support of the
government and citizens of that country.

5. CASE 2: PERFORMANCE DATA
STRATEGIC CHOICES
 Allow the supervisor to fabricate the data
 Stick to the data collected and present
what has been observed
STAKEHOLDER
 No stakeholder involved except for yourself
and the deputy.

6. IMPACT OF STRATEGIC CHOICES
 Presenting true data may be perceived as under
performance or not meeting targets
 Fudging data may give a rosy picture but will be
detected at some point
 It may also affect some strategic measures that could
be taken at the managerial level, in case the targets
are not met.
STRATEGY INTO ACTION
 Some data could be altered but within reasonable
limits and should be justifiable.
 Even if the performance is below the set target,
mention in the report the reason for the same and
suggestions of what can be done to improve this in
the next quarter.
 Also mention if any support is required and when can
the target be achieved.

7. CASE 3: BRIBERY
STRATEGIC CHOICES
 Bribe the Local 4 of the electrician’s union
 Try securing approval on your own
 File a complain to the administrative
authorities against the illegal demands of
the union
STAKEHOLDERS
 Company
 The government
 Electrician’s Union

8. IMPACT OF STRATEGIC CHOICES
 Risk of prolonged commencement of operations
 Compliance to illegal demands amounts to encouraging such
activities
 Bad terms with influential local authorities could impact
important decisions in the future
 $12000 is a small sum compared to the spend estimated. It can
be easily spent and the problems done away with. This also
ensures support of local authorities and will take care of future
hindrances in operations or compliance.
 Failed operations will impact your credibility in the company
since it is a make or break for the company’s operations in the
USA
 Trying to secure approval on your own is a mammoth task and
cannot be completed without the assistance of local authorities.
 Filing of a complaint opens up legal procedures resulting in sunk
costs and does not assure approval.

9. STRATEGY INTO ACTION
 A complaint should be filed against the local authorities.
 In this way, approval for business will be obtained on legal
grounds.
 Compliance with unreasonable demands amounts to
acceptance and this could be an issue in the future if
discovered by the company’s management in UK as the spend
of $12000 will not be disclosed.
 If the case is won, support of the administrative authorities and
legal system can be garnered for conducting business.
 In a country, where laws are well in place and the legal system
strong enough to provide justice, the route of bribery should not
be adopted.
 The trade off is between short term gains and long term losses
of conducting business in that country.
 One should take a risk to fight out the situation as the business
has been set up for long term survival.
 Losing the case means there are loopholes in the legal system
and such issues will always exist. Thus, the decision should be
reconsidered if business is to be continued in that country.
 Inform the company management of the influence of local 4

10. CASE 4: RATIONING
STRATEGIC CHOICES
 Save the German tourist and the tribe
leader
 Save both the children
 Save the tourist and one child
 Save the tribe leader and one child
STAKEHOLDERS
 The tribe to whom the leader belongs
 German government
 Parents of the two children

11. IMPACT OF STRATEGIC CHOICES
 Saving the German tourist and the tribe leader
will mean that the children are unimportant and
hence their safety is being ignored.
 Saving both the children means the tribe leader
who is relatively important and the tourist who is
a guest to the country have been ignored.
 In any case not saving the tribe leader could lead
to tribal unrest in that region and the situation
could be out of control.
 If the German tourist is not saved, it will impact
tourism in the country which is an important
contributor to GDP and moreover spoil relations
of Nigeria with European Nations.
 When choosing one would lead to rejecting the
other, the choices have to be made wisely such
that the reason why one is chosen over the other
is justifiable.

12. STRATEGY INTO ACTION
 One child and the German tourist should be
saved.
 The leader can be reappointed and since it is
only a local tribe, the unrest can be handled
by the local protective forces.
 Saving the foreign tourist would instill trust in
the government’s responsibility towards their
guests.

13. Dhanyawad