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Case Studies
Failure to disclose relevant information
Fagin was a sole agent for a sports bag imported from a foreign country. The bags appealed to teenagers and came in various striking colours. They were renowned for its high quality and being colour-fast. One day, Fagin received a complaint from a customer that the colour of the bag ran off shortly after the purchase. Fagin quickly made a refund and hushed up the matter. To avoid further financial loss, he was planning to get rid of all the stocks by a massive sale on the bags before the related news broke out. Meanwhile, he also wondered if he should disclose the defect to the distributors in Hong Kong. He thought it would be fine during massive sale as long as he did not lie about the flaw but simply avoid mentioning it.
Was Fagin acting wrongly? Would his failure to disclose relevant information be as bad as making false claims about his products? Should he call back all the defected products from the market in order to maintain a good business reputation?
Case Analysis
Fagin was facing an ethical dilemma that might put his personal values such as responsibility and honesty to challenge. In handling situation like this, Fagin should identify the relevant facts and take stock of all stakeholders concerned. The following factors should be taken into consideration when identifying viable alternatives and choosing the best course of action:
- Any violation to his professional, industry specific, or company code of conduct?
- Is it against the Law?
- Does it correspond with his self-values such as responsibility or honesty?
- Can he disclose his decision to others openly and honestly without misgivings?
The ETHICS PLUS ethical decision making model might be helpful for him in solving his ethical dilemma.