Business Ethics Case Study: Lumbar Trading

Cohort A Group 4
Sanikere Matt, Supritha (@03278826) Gowda, Sanjana(@03279381) Shetty, Shreya(@03279490) Lobo, Vivitha Vilona (@03278707) Badrivishal, Vishisht (@03278704)
This case deals with the moral dilemma faced by a lumbar trader Bob in selling goods which might not be used for its specified purpose. The major ethical issue here is that Bob knows that the lumber he's selling is likely going to be used as a scaffold plank, which it does not meet the specifications for. This puts Bob in a crunch as he is not able to reconcile with his morals and conscience as to how he can go forward with this sale. On the one hand the times are tough and this sale would definitely bring in some much needed revenue, but on the other, it is not right on

Bob can sell the lumber to Quality by clearly specifying in the invoice that " This wood is not suitable to be used as a scaffold plank" and can specify that anything the wood is used for other than its intended use is not their responsibility. This way he can rest a little easier knowing that he has done his part in warning the end user about the misuse of this product. This also ensures that he can complete the order with Stan and get the much needed revenue to the company during a crucial time. The ethics associated with this approach is better as ,Bob as a citizen has done his job of warning the buyer that this particular lumber isn't suitable for scaffold plank.
The philosophical approach we are using is the Utilitarian model which states that an ethical decision is one that produces the greater good for the greatest number of people. This approach is used in the third alternative as he is taking the decision that benefits most people. He benefits his organization by generating much needed revenue, then he also maintains the relations with his customers and his boss and

The first one is that this order will give the company the much needed revenue as the month is pretty dull and the entire nation was heading into a recession. This order will make the company reach its breakeven point for that month.
Another constraint is that not taking this order will put the company into loss for that month and they will not be able to meet all their expenses for the month. This may include salaries and other fixed costs. The third constraint is that since it is a competitive market and the times are bad, if Bob doesn't supply the lumber someone else will. And this will take away their customer as well as the rapport that Bob built with Stan till now. If I was Bob I would go forward with the order and execute it. But I would make sure that I clearly specify in the invoice that " This lumber is not suitable for use as a scaffold plank " as a warning so that my moral obligation is completed. This is also a chance for me to learn that there are many differences from the real world to that of the theoretical world that we study in books. There are many issues and constraints in the real world that we have to take into account before making any decision and ethics here is not all black and white. There are many grey areas that come into play and each situation should be analyzed and treated differently. I as Bob will also reconcile with my conscience with the work I'm doing as not everything is