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Entrepreneurial Small Business 2nd Edition by Jerome Katz , Richard Green
Edition 2ISBN: 978-1259573798Entrepreneurial Small Business 2nd Edition by Jerome Katz , Richard Green
Edition 2ISBN: 978-1259573798 Exercise 10
SMALL BUSINESS ETHICS: (1) DRY CLEANING, (2) CONSTRUCTION
SUMMARY:
(1) Dry Cleaning
Dilemma: The owners of a dry cleaning business are trying to decide whether or not to adopt a new solvent that is environmentally friendly. There are many benefits to using this solvent. However, it won't work in the present machines-it requires a complete replacement. This will run about $50,000 for equipment costs. Other transition expenses are considered as well, such as hand cleaning clothes and ruined clothes. The money makes it hard to justify changing to a safer solvent. The owners think that their customers will not help incur the cost of change. Despite the fact that there will be no waste disposal charges and that it is a safer process for employees, they are unsure what to do.
Decision: The owners converted all three locations to the safer new solvent. The owners felt they owed a safe working environment to the community, their employees, and the environment. They considered the goodwill felt throughout the community would be an indication of payback in the future.
(2) Construction
Dilemma: On a new home-building site, Sarski, a subcontractor, has found a soft spot on one of the lots. A soft spot means foundation cannot be laid until the spot is stabilized. There is lots of buyer interest in the new development and time is of the essence. Sarski cannot incur the costs of correcting the soft spot. He has had a terrible time with the economy. His contract has no cushion for such an expense. Legally, the contractors don't have to pay Sarski. The implication of not paying would probably be a court battle between the two. This would entail a cost of time and money. What is the right thing for the contractors to do
Decision: The contractors paid for the soft spot dig in full. They had a good relationship with Sarski's business from previous work. They also believed that Sarski couldn't handle the expense and stay in business. They did not want to damage their own reputation by delaying the build.
What is considered an ethical dilemma
SUMMARY:
(1) Dry Cleaning
Dilemma: The owners of a dry cleaning business are trying to decide whether or not to adopt a new solvent that is environmentally friendly. There are many benefits to using this solvent. However, it won't work in the present machines-it requires a complete replacement. This will run about $50,000 for equipment costs. Other transition expenses are considered as well, such as hand cleaning clothes and ruined clothes. The money makes it hard to justify changing to a safer solvent. The owners think that their customers will not help incur the cost of change. Despite the fact that there will be no waste disposal charges and that it is a safer process for employees, they are unsure what to do.
Decision: The owners converted all three locations to the safer new solvent. The owners felt they owed a safe working environment to the community, their employees, and the environment. They considered the goodwill felt throughout the community would be an indication of payback in the future.
(2) Construction
Dilemma: On a new home-building site, Sarski, a subcontractor, has found a soft spot on one of the lots. A soft spot means foundation cannot be laid until the spot is stabilized. There is lots of buyer interest in the new development and time is of the essence. Sarski cannot incur the costs of correcting the soft spot. He has had a terrible time with the economy. His contract has no cushion for such an expense. Legally, the contractors don't have to pay Sarski. The implication of not paying would probably be a court battle between the two. This would entail a cost of time and money. What is the right thing for the contractors to do
Decision: The contractors paid for the soft spot dig in full. They had a good relationship with Sarski's business from previous work. They also believed that Sarski couldn't handle the expense and stay in business. They did not want to damage their own reputation by delaying the build.
What is considered an ethical dilemma
Explanation
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The case depicts the role of ethics in b...
Entrepreneurial Small Business 2nd Edition by Jerome Katz , Richard Green
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