Identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles

Purpose: In the first assignment, you have the opportunity to see ethics in play in a real world scenario. You will read the case scenario and answers the questions in a narrative format. Use headings for each question. Headings are not the question. You are required to use the course material to support your reasoning and the conclusions made.

Outcomes met by completing this project:

  1. identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles

Instructions

Step 1: Write the Introduction

Create the introductory paragraph. The introductory paragraph is the first paragraph of the paper and tells a reader the main points covered in the paper.

Step 2: Read the Case Scenario:

Kobe is one of the largest steelmakers in the world and the third largest steelmaker in Japan with more than 200 subsidiaries and 62 affiliated companies in Europe, Asia, and North America. On April 1, 2018, Kiroya Kawasaki stepped down as CEO and President of Kobe Steel in the wake of an investigation after the company admitting to widespread falsification of quality data about metal supplied to automobile companies such as Toyota, Honda, Mazda, Subaru, Nissan and Ford. Kobe Steel had been falsifying quality data for as many as 10 years and was aware the company was selling substandard metal (aluminum, copper and powdered steel) that was used in making molded part to companies around the world.

Steel making is crucial to Japan’s economy and reputation for precision manufacturing providing a competitive edge over China and other countries that offer cheaper alternatives. However, this latest scandal continues to chip away at Japan’s already marred reputation. In 2016, Suzuki Motors and Mitsubishi admitted to cheating on test that exaggerated the fuel economy on its vehicles and Takata recalled tens of millions of vehicles for faulty airbags forcing the company into bankruptcy.

Noted by a corporate watchdog, Japanese companies have been considered diligent about quality control but due to time, competitive pressure or other factors, when cheating occurred, it went unchecked. Also, Japanese companies tend to discourage thorough examination or criticism from employees or independent examiners.

At Kobe, employees were supposed to test products to ensure design standards outlined in specific customer contracts were met. Kobe Steel admitted that in some cases the test were not carried out and in several instances employees deliberately altered inspection certificates or recorded false results to make it appear tests were carried out to meet quality standards. Kobe also admitted that employees at several factories altered inspection certificates on copper and aluminum products between September 2016 and August 2017. The altered records made it appear that its products met manufacturing specification set by its customers. Two known incidents of data falsification related to tensile strength, which is vital to the resistance of a material breaking under stress and powdered steel used in molded metal parts. Kobe sent the quality data to its customer who in turn approved shipment of the goods to customers.

After admitting to widespread tampering of quality data, authorities in Japan and the United States started investigating Kobe. With at least five decades of data fraud, more than 600 customers were identified as affected by Kobe’s actions. Kobe Steel supplies manufacturing parts for automobiles, trains, aircrafts, electronics and other metal products. During the internal review, Kobe confirmed findings of data falsification stating that the problem spanned four percent of the company’s output between September 2016 and August 2017. Affected products included the following products that were shipped to approximately 200 companies:

19,300 tons of flat-rolled and extruded aluminum products
19,400 units of aluminum casting and forgings
2,200 tons of copper products
At the time, Kobe Steel declined to reveal the names of the companies affected but indicated it had not received any complaints from customers using the affected products.

In October of 2017, Kobe Steel established an Independent Investigation Committee (IIC) that reviewed the company’s shipments between September 2016 and August 2017. The company recognized misconduct that covered the act of fabricating inspection data that did not meet customer specifications and public standards and the shipping and delivering of products to customers as if the products conformed to customer specifications and public standards.

Findings of the report revealed the involvement of executive officers in the misconduct but stated the involvement was limited to the Aluminum and Copper Business. Two executive officers were aware of the misconduct but did not report the issue to their boss who was the Head of the Aluminum and Copper Business. Another executive who was aware of the misconduct made the decision as a basic policy to gradually eliminate the production and shipment of nonconforming products. He also decided to instruct staff to improve manufacturing processes and to stop accepting part of the orders.

The report also showed former executive officers were directly involved with misconduct before becoming executive officers and failed to stop or correct the misconduct. The misconduct extended beyond the Aluminum and Copper Business to other division and Group companies.

Step 3: Answer the Following

Answer the following requirements using both the course material and case scenario facts to support the reasoning and conclusions made. You may use additional research but are limited to two additional articles related to Kobe Steel. All source material must be cited and referenced.

*Identify and discuss the ethical issues related to the Kobe Steel scandal.
*Identify the stakeholders involved in the Kobe Steel scandal. Be thorough and specific.
*Discuss the potential implications of Kobe Steel’s actions on each stakeholder or stakeholder group. Give examples.
*Discuss how corporate culture played a role in Kobe Steel’s misconduct.
*Explain how a utilitarian would view the misconduct actions of Kobe Steel.
*Explain how Aristotle would view the actions of Kobe Steel’s employees.
*Using Kant’s ethical theory, explain how the new CEO should address the quality issues and unethical behavior of the employees to ease the minds of the company’s stakeholders.

How to Set Up the Paper

Create a Word document that is double-spaced, 12-point font. The final product will be between 4-6 pages in length excluding the title page and reference page. Write clearly and concisely.

Completing the Paper

In order to complete this project, you will want to first read the module, Learn How to Support What You Write, as this assignment requires you to use the course material and research to support what you write. Also,

Read and use the grading rubric while completing the exercise to ensure all requirements are met that will lead to the highest possible grade.
Third person writing is required. Third person means that there are no words such as “I, me, my, we, or us” (first person writing), nor is there use of “you or your” (second person writing).
Contractions are not used in business writing, so do not use them.
Paraphrase and do not use direct quotation marks.
You are expected to use the case scenarios and weekly course material to develop the analysis and support the reasoning. There should be a robust use of the course material and case scenario facts. Material used from a source document must be cited and referenced. A reference within a reference list cannot exist without an associated in-text citation and vice versa. Changing words from a passage does not exclude the passage from having quotation marks. If more than four consecutive words are used from source documents, this material will not be included in the grade and could lead to allegations of academic dishonesty.
Use in-text citations and provide a reference list that contains the reference associated with each in-text citation.
The only book you may use is the course material below. This project only allows you to use the course material plus two additional articles related to Kobe Steel. You may not use a dictionary or Wikipedia.
Provide the page or paragraph number in every in-text citation presented. If the eBook does not have pages, provide the chapter title and topic heading.

Rubric Name: Project 1
For Above Average Grade (A)
Criteria 1
Introduction
Writes an introduction that captures the reader’s attention, gives context to the paper, and builds to the thesis that defines the main points to be discussed in the paper.
Criteria 2
Identify and discuss the ethical issues related to the Kobe Steel scandal
Thoroughly and correctly identifies and discusses the ethical issues related to the Kobe Steel scandal using the course material AND case scenario facts to support reasoning and conclusions.
Identify the stakeholders involved in the Kobe Steel scandal
Thoroughly and correctly identifies the stakeholders involved in the Kobe Steel scandal using the course material AND case scenario facts to support reasoning and conclusions.
Discuss the potential implications of Kobe Steel’s actions on each stakeholder or stakeholder group
Thoroughly and correctly discusses the potential implications of Kobe Steel’s actions on each stakeholder or stakeholder group providing an example for each implication and uses the course material AND case scenario facts to support reasoning and conclusions.
Discuss how corporate culture played a role in Kobe Steel’s misconduct
Thoroughly and correctly discusses how corporate culture played a role in Kobe Steel’s misconduct using the course material AND case scenario facts to support reasoning and conclusions.
Explain how a utilitarian would view the misconduct actions of Kobe Steel
Thoroughly and correctly explains how a utilitarian would view the misconduct actions of Kobe Steel using the course material AND case scenario facts to support reasoning and conclusions.
Explain how Aristotle would view the actions of Kobe Steel’s employees
Thoroughly and correctly explains how Aristotle would view the actions of Kobe Steel’s employees using the course material AND case scenario facts to support reasoning and conclusions.
Using Kant’s ethical theory, explain how the new CEO should address the quality issues and unethical behavior of the employees to ease the minds of the company’s stakeholders
Thoroughly and correctly uses Kant’s ethical theory to explain how the new CEO should address the quality issues and unethical behavior of the employees to ease the minds of the company’s stakeholders using the course material AND case scenario facts to support reasoning and conclusions.
Criteria 3
Attention to Instructions
The paper contains all major assignment tasks. The paper also includes completion of all minor aspects of the assignment such as third person writing, page/paragraph number, no direct quotes, headings, and assignment formatting.

COURSE MATERIAL to choose from is below (ALL MATERIAL CAN BE GOOGLED)
The Business Ethics Workshop (2012) Washington, DC: The Saylor Foundation, Chapter 1: What Is Business Ethics? (pages 4-32)
Chapter 3: Theories of Consequence Ethics: Traditional Tools for Making Decisions in Business When the Ends Justify the Means (pages 91-125)
Chapter 4: Theories Responding to the Challenge of Cultural Relativism (pages 137-176);
Ethical Issues, Ethical Dilemmas, & Legal Issues;
Culture: The Key to Corporate Governance;
Corporate culture: The second ingredient in a world-class ethics and compliance program;
The two-year Wells Fargo horror story just won’t end;
Tippee Insider Trading after Newman and Salman : Why Knowledge Is Not Always Your;
Insider Trading: Examining Tipper and Tippee Liability;
60 Minutes Flash Boys – High Frequency Trading;
Socially-Responsible Investing for Long Term Safety and Returns: Tom Van Dyck at TEDxNewWallStreet;
Why Creating Wealth Is Not Exploitative;
What’s in a Name? Regulation Best Interest v. Fiduciary;
OSHA’s Wall of Shame: Agency Targets ‘Severe Violators’;
The Top 10 Bizarre Workers’ Compensation Cases for 2015;
Kareem Hunt faces more than baseline six-game suspension;
The silent killer of workplace happiness, productivity, and health is a lack of basic civility;
Chris Porath – “Mastering Civility: A Manifesto in the Workplace,” WJLA Interview;
Thinking About Using Payroll Debit Cards? Read This First;
New Overtime Rules Suspended for Now;
Are ESOPs Good Retirement Plans?;
Illegal Discrimination;

The Pregnancy Discrimination Act and the Supreme Court: A Legal Analysis of Young v. U nited Parcel S ervice;
Legal discrimination in four letters: BFOQ;
The strange loophole that lets Hooters hire only female servers;
Is it okay to hire cooks to match the cuisine? (part I);
Resources Legal Alerts Newsletters Articles Blogs Mobile Apps Subject-Matter Booklets State Law Guides Newsletter PDF EEOC Settles Beef With Restaurant;
The Hidden Obstacle to Great Corporate Culture: Unconscious Bias;
Former Hooters Waitress Awarded $250,000 in Racial Discrimination Case;
Lifestyle Discrimination: Is it Legal?;
8 Ways Employers Can Discriminate Against Workers – Legally;
Anne Arundel Medical Center Won’t Hire Smokers In The Future;
Pay Transparency Is The Solution To The Pay Gap: Here’s One Company’s Success Story;
If a Law Bars Asking Your Past Salary, Does It Help or Hurt?;
Employers Must Use Caution When Basing Pay Decisions On Prior Salary History;
Schumpeter: ESOP – When Workers Are Owners;
Employee Rights When Working for Multinational Employers;
EU to push for 40% quota for women on company boards;
EU workplace headscarf ban ‘can be legal’, says ECJ;

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