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Case Studies

More than 70 cases pair ethics concepts with real world situations. From journalism, performing arts, and scientific research to sports, law, and business, these case studies explore current and historic ethical dilemmas, their motivating biases, and their consequences. Each case includes discussion questions, related videos, and a bibliography.

A Million Little Pieces

James Frey’s popular memoir stirred controversy and media attention after it was revealed to contain numerous exaggerations and fabrications.

Abramoff: Lobbying Congress

Super-lobbyist Abramoff was caught in a scheme to lobby against his own clients. Was a corrupt individual or a corrupt system – or both – to blame?

Apple Suppliers & Labor Practices

Is tech company Apple, Inc. ethically obligated to oversee the questionable working conditions of other companies further down their supply chain?

Approaching the Presidency: Roosevelt & Taft

Some presidents view their responsibilities in strictly legal terms, others according to duty. Roosevelt and Taft took two extreme approaches.

Appropriating “Hope”

Fairey’s portrait of Barack Obama raised debate over the extent to which an artist can use and modify another’s artistic work, yet still call it one’s own.

Arctic Offshore Drilling

Competing groups frame the debate over oil drilling off Alaska’s coast in varying ways depending on their environmental and economic interests.

Banning Burkas: Freedom or Discrimination?

The French law banning women from wearing burkas in public sparked debate about discrimination and freedom of religion.

Birthing Vaccine Skepticism

Wakefield published an article riddled with inaccuracies and conflicts of interest that created significant vaccine hesitancy regarding the MMR vaccine.

Blurred Lines of Copyright

Marvin Gaye’s Estate won a lawsuit against Robin Thicke and Pharrell Williams for the hit song “Blurred Lines,” which had a similar feel to one of his songs.

Bullfighting: Art or Not?

Bullfighting has been a prominent cultural and artistic event for centuries, but in recent decades it has faced increasing criticism for animal rights’ abuse.

Buying Green: Consumer Behavior

Do purchasing green products, such as organic foods and electric cars, give consumers the moral license to indulge in unethical behavior?

Cadavers in Car Safety Research

Engineers at Heidelberg University insist that the use of human cadavers in car safety research is ethical because their research can save lives.

Cardinals’ Computer Hacking

St. Louis Cardinals scouting director Chris Correa hacked into the Houston Astros’ webmail system, leading to legal repercussions and a lifetime ban from MLB.

Cheating: Atlanta’s School Scandal

Teachers and administrators at Parks Middle School adjust struggling students’ test scores in an effort to save their school from closure.

Cheating: Sign-Stealing in MLB

The Houston Astros’ sign-stealing scheme rocked the baseball world, leading to a game-changing MLB investigation and fallout.

Cheating: UNC’s Academic Fraud

UNC’s academic fraud scandal uncovered an 18-year scheme of unchecked coursework and fraudulent classes that enabled student-athletes to play sports.

Cheney v. U.S. District Court

A controversial case focuses on Justice Scalia’s personal friendship with Vice President Cheney and the possible conflict of interest it poses to the case.

Christina Fallin: “Appropriate Culturation?”

After Fallin posted a picture of herself wearing a Plain’s headdress on social media, uproar emerged over cultural appropriation and Fallin’s intentions.

Climate Change & the Paris Deal

While climate change poses many abstract problems, the actions (or inactions) of today’s populations will have tangible effects on future generations.

Cover-Up on Campus

While the Baylor University football team was winning on the field, university officials failed to take action when allegations of sexual assault by student athletes emerged.

Covering Female Athletes

Sports Illustrated stirs controversy when their cover photo of an Olympic skier seems to focus more on her physical appearance than her athletic abilities.

Covering Yourself? Journalists and the Bowl Championship

Can news outlets covering the Bowl Championship Series fairly report sports news if their own polls were used to create the news?

Cyber Harassment

After a student defames a middle school teacher on social media, the teacher confronts the student in class and posts a video of the confrontation online.

Defending Freedom of Tweets?

Running back Rashard Mendenhall receives backlash from fans after criticizing the celebration of the assassination of Osama Bin Laden in a tweet.

Dennis Kozlowski: Living Large

Dennis Kozlowski was an effective leader for Tyco in his first few years as CEO, but eventually faced criminal charges over his use of company assets.

Digital Downloads

File-sharing program Napster sparked debate over the legal and ethical dimensions of downloading unauthorized copies of copyrighted music.

Dr. V’s Magical Putter

Journalist Caleb Hannan outed Dr. V as a trans woman, sparking debate over the ethics of Hannan’s reporting, as well its role in Dr. V’s suicide.

East Germany’s Doping Machine

From 1968 to the late 1980s, East Germany (GDR) doped some 9,000 athletes to gain success in international athletic competitions despite being aware of the unfortunate side effects.

Ebola & American Intervention

Did the dispatch of U.S. military units to Liberia to aid in humanitarian relief during the Ebola epidemic help or hinder the process?

Edward Snowden: Traitor or Hero?

Was Edward Snowden’s release of confidential government documents ethically justifiable?

Ethical Pitfalls in Action

Why do good people do bad things? Behavioral ethics is the science of moral decision-making, which explores why and how people make the ethical (and unethical) decisions that they do.

Ethical Use of Home DNA Testing

The rising popularity of at-home DNA testing kits raises questions about privacy and consumer rights.

Flying the Confederate Flag

A heated debate ensues over whether or not the Confederate flag should be removed from the South Carolina State House grounds.

Freedom of Speech on Campus

In the wake of racially motivated offenses, student protests sparked debate over the roles of free speech, deliberation, and tolerance on campus.

Freedom vs. Duty in Clinical Social Work

What should social workers do when their personal values come in conflict with the clients they are meant to serve?

Full Disclosure: Manipulating Donors

When an intern witnesses a donor making a large gift to a non-profit organization under misleading circumstances, she struggles with what to do.

Gaming the System: The VA Scandal

The Veterans Administration’s incentives were meant to spur more efficient and productive healthcare, but not all administrators complied as intended.

German Police Battalion 101

During the Holocaust, ordinary Germans became willing killers even though they could have opted out from murdering their Jewish neighbors.

Head Injuries & American Football

Many studies have linked traumatic brain injuries and related conditions to American football, creating controversy around the safety of the sport.

Head Injuries & the NFL

American football is a rough and dangerous game and its impact on the players’ brain health has sparked a hotly contested debate.

Healthcare Obligations: Personal vs. Institutional

A medical doctor must make a difficult decision when informing patients of the effectiveness of flu shots while upholding institutional recommendations.

High Stakes Testing

In the wake of the No Child Left Behind Act, parents, teachers, and school administrators take different positions on how to assess student achievement.

In-FUR-mercials: Advertising & Adoption

When the Lied Animal Shelter faces a spike in animal intake, an advertising agency uses its moral imagination to increase pet adoptions.

Krogh & the Watergate Scandal

Egil Krogh was a young lawyer working for the Nixon Administration whose ethics faded from view when asked to play a part in the Watergate break-in.

Limbaugh on Drug Addiction

Radio talk show host Rush Limbaugh argued that drug abuse was a choice, not a disease. He later became addicted to painkillers.

U.S. Olympic swimmer Ryan Lochte’s “over-exaggeration” of an incident at the 2016 Rio Olympics led to very real consequences.

Meet Me at Starbucks

Two black men were arrested after an employee called the police on them, prompting Starbucks to implement “racial-bias” training across all its stores.

Myanmar Amber

Buying amber could potentially fund an ethnic civil war, but refraining allows collectors to acquire important specimens that could be used for research.

Negotiating Bankruptcy

Bankruptcy lawyer Gellene successfully represented a mining company during a major reorganization, but failed to disclose potential conflicts of interest.

Pao & Gender Bias

Ellen Pao stirred debate in the venture capital and tech industries when she filed a lawsuit against her employer on grounds of gender discrimination.

Pardoning Nixon

One month after Richard Nixon resigned from the presidency, Gerald Ford made the controversial decision to issue Nixon a full pardon.

Patient Autonomy & Informed Consent

Nursing staff and family members struggle with informed consent when taking care of a patient who has been deemed legally incompetent.

Prenatal Diagnosis & Parental Choice

Debate has emerged over the ethics of prenatal diagnosis and reproductive freedom in instances where testing has revealed genetic abnormalities.

Reporting on Robin Williams

After Robin Williams took his own life, news media covered the story in great detail, leading many to argue that such reporting violated the family’s privacy.

Responding to Child Migration

An influx of children migrants posed logistical and ethical dilemmas for U.S. authorities while intensifying ongoing debate about immigration.

Retracting Research: The Case of Chandok v. Klessig

A researcher makes the difficult decision to retract a published, peer-reviewed article after the original research results cannot be reproduced.

Sacking Social Media in College Sports

In the wake of questionable social media use by college athletes, the head coach at University of South Carolina bans his players from using Twitter.

Selling Enron

Following the deregulation of electricity markets in California, private energy company Enron profited greatly, but at a dire cost.

Snyder v. Phelps

Freedom of speech was put on trial in a case involving the Westboro Baptist Church and their protesting at the funeral of U.S. Marine Matthew Snyder.

Something Fishy at the Paralympics

Rampant cheating has plagued the Paralympics over the years, compromising the credibility and sportsmanship of Paralympian athletes.

Sports Blogs: The Wild West of Sports Journalism?

Deadspin pays an anonymous source for information related to NFL star Brett Favre, sparking debate over the ethics of “checkbook journalism.”

Stangl & the Holocaust

Franz Stangl was the most effective Nazi administrator in Poland, killing nearly one million Jews at Treblinka, but he claimed he was simply following orders.

Teaching Blackface: A Lesson on Stereotypes

A teacher was put on leave for showing a blackface video during a lesson on racial segregation, sparking discussion over how to teach about stereotypes.

The Astros’ Sign-Stealing Scandal

The Houston Astros rode a wave of success, culminating in a World Series win, but it all came crashing down when their sign-stealing scheme was revealed.

The Central Park Five

Despite the indisputable and overwhelming evidence of the innocence of the Central Park Five, some involved in the case refuse to believe it.

The CIA Leak

Legal and political fallout follows from the leak of classified information that led to the identification of CIA agent Valerie Plame.

The Collapse of Barings Bank

When faced with growing losses, investment banker Nick Leeson took big risks in an attempt to get out from under the losses. He lost.

The Costco Model

How can companies promote positive treatment of employees and benefit from leading with the best practices? Costco offers a model.

The FBI & Apple Security vs. Privacy

How can tech companies and government organizations strike a balance between maintaining national security and protecting user privacy?

The Miss Saigon Controversy

When a white actor was cast for the half-French, half-Vietnamese character in the Broadway production of Miss Saigon , debate ensued.

The Sandusky Scandal

Following the conviction of assistant coach Jerry Sandusky for sexual abuse, debate continues on how much university officials and head coach Joe Paterno knew of the crimes.

The Varsity Blues Scandal

A college admissions prep advisor told wealthy parents that while there were front doors into universities and back doors, he had created a side door that was worth exploring.

Providing radiation therapy to cancer patients, Therac-25 had malfunctions that resulted in 6 deaths. Who is accountable when technology causes harm?

Welfare Reform

The Welfare Reform Act changed how welfare operated, intensifying debate over the government’s role in supporting the poor through direct aid.

Wells Fargo and Moral Emotions

In a settlement with regulators, Wells Fargo Bank admitted that it had created as many as two million accounts for customers without their permission.

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Ethical Business Practices: Case Studies and Lessons Learned

Introduction

Ethical business practices are a cornerstone of any successful company, influencing not only the public perception of a brand but also its long-term profitability. However, understanding what constitutes ethical behavior and how to implement it can be a complex process. This article explores some case studies that shine a light on ethical business practices, offering valuable lessons for businesses in any industry.

Case Study 1: Patagonia’s Commitment to Environmental Ethics

Patagonia, the outdoor clothing and gear company, has long set a standard for environmental responsibility. The company uses eco-friendly materials, promotes recycling of its products, and actively engages in various environmental causes.

Lessons Learned

• Transparency : Patagonia is vocal about its ethical practices and even provides information on the environmental impact of individual products.
• Consistency: Ethics are not an “add-on” for Patagonia; they are integrated into the very fabric of the company’s operations, from sourcing to production to marketing.
• Engagement: The company doesn’t just focus on its practices; it encourages consumers to get involved in the causes it supports.

Case Study 2: Salesforce and Equal Pay

Salesforce, the cloud-based software company, took a stand on the gender pay gap issue. They conducted an internal audit and found that there was indeed a significant wage disparity between male and female employees for similar roles. To address this, Salesforce spent over $6 million to balance the scales.

• Self-Audit: It’s crucial for companies to actively review their practices. What you don’t know can indeed hurt you, and ignorance is not an excuse.
• Taking Responsibility: Rather than sweeping the issue under the rug, Salesforce openly acknowledged the problem and took immediate corrective action.
• Long-Term Benefits: Fair treatment boosts employee morale and productivity, leading to long-term profitability.

Case Study 3: Starbucks and Racial Sensitivity Training

In 2018, Starbucks faced a public relations crisis when two Black men were wrongfully arrested at one of their Philadelphia stores. Instead of issuing just a public apology, Starbucks closed down 8,000 of its stores for an afternoon to conduct racial sensitivity training.

Lessons   Learned

• Immediate Action : Swift and meaningful action is critical in showing commitment to ethical behavior.
• Education: Sometimes, the problem is a lack of awareness. Investing in employee education can avoid repeated instances of unethical behavior.
• Public Accountability: Starbucks made their training materials available to the public, showing a level of transparency and accountability that helped regain public trust.

Why Ethics Matter

Ethical business practices are not just morally correct; they have a direct impact on a company’s bottom line. Customers today are more informed and more sensitive to ethical considerations. They often make purchasing decisions based on a company’s ethical standing, and word-of-mouth (or the digital equivalent) travels fast.

The case studies above show that ethical business practices should be a top priority for companies of all sizes and industries. These are not isolated examples but are representative of a broader trend in consumer expectations and regulatory frameworks. The lessons gleaned from these cases—transparency, consistency, engagement, self-audit, taking responsibility, and education—are universally applicable and offer a robust roadmap for any business seeking to bolster its ethical standing.

By implementing ethical business practices sincerely and not as a marketing gimmick, companies not only stand to improve their public image but also set themselves up for long-term success, characterized by a loyal customer base and a motivated, satisfied workforce.

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4 Examples of Ethical Leadership in Business

• 14 Sep 2023

Have you ever faced an ethical dilemma? Maybe you found someone’s wallet on the ground or witnessed someone cheating during a test or competition. In these scenarios, the right answer isn’t always clear.

In business, you’re bound to encounter ethical dilemmas, especially as a leader. Behaving unethically can be illegal—for instance, stealing money or harming employees. In these situations, making the right choice is clearer. Sometimes, it’s not a question of legality but of weighing potential outcomes.

“Many of the decisions you face will not have a single right answer,” says Harvard Business School Professor Nien-hê Hsieh in the online course Leadership, Ethics, and Corporate Accountability . “Sometimes, the most viable answer may come with negative effects. In such cases, the decision is not black and white. As a result, many call them ‘gray-area decisions.’”

When facing ambiguity, how do you make the most ethical decision? Here’s a primer on ethical leadership and four examples of leaders who faced the same question.

Access your free e-book today.

What Is Ethical Leadership?

Ethical leadership is the practice of making decisions that balance stakeholders’ best interests with your company’s financial health, and empowering others to do the same.

As a leader, you have ethical responsibilities to four stakeholder groups—customers, employees, investors, and society—which Leadership, Ethics, and Corporate Accountability breaks down.

Responsibilities to Customers and Employees

• Well-being: What’s ultimately good for the person
• Rights: Entitlement to receive certain treatment
• Duties: A moral obligation to behave in a specific way
• Best practices: Aspirational standards not required by law or cultural norms

Employees have a fifth category—fairness—which comprises three types to consider:

• Legitimate expectations: Employees reasonably expect certain practices or behaviors to continue based on experiences with the organization and explicit promises.
• Procedural fairness: Managers must resolve issues impartially and consistently.
• Distributive fairness: Your company equitably allocates opportunities, benefits, and burdens.

Responsibilities to Investors

Your responsibilities to investors are known as fiduciary duties . The four types are:

• Duty of obedience: Adhere to corporate bylaws, superiors’ instructions, and the law.
• Duty of information: Disclose necessary information and remain truthful about performance and operations. Refuse to divulge certain information to nonessential parties.
• Duty of loyalty: Act in the most favorable way for shareholders and avoid conflicts of interest.
• Duty of care: Evaluate decisions’ potential outcomes before acting.

Responsibilities to Society

In addition to creating value for your business, you’re responsible for making a positive, or at least neutral, impact on society and the environment.

One framework to conceptualize this is the triple bottom line, also called the “three P’s”:

• Profit: Your business’s responsibility to make a profit.
• People: Your business’s responsibility to positively impact society by creating jobs, supporting charities, or promoting well-being initiatives.
• The planet: Your business’s responsibility to positively impact the natural environment, or at least not damage it.

Even business leaders with the best intentions can make unethical decisions. In a Harvard Business Review article , HBS Professor Max Bazerman describes the concept of motivated blindness , in which you become unaware of unethical decisions when they benefit you or your company.

Hsieh echoes this sentiment in Leadership, Ethics, and Corporate Accountability .

“Even when the right thing to do seems clear from an outsider’s perspective, factors like time, social pressures, and the need for self-preservation can complicate things,” Hsieh says in the course.

Learning about ethical leadership can enable you to be aware of unintended negligence and make more conscious, ethical decisions.

Here are four examples of business leaders who faced ethical dilemmas, how they handled them, and what you can learn from their experiences.

1. Johnson & Johnson’s Tylenol Poisonings

A classic case of ethical leadership in business is “the Chicago Tylenol poisonings.” On September 9, 1982, a Chicago-area 12-year-old girl woke up with a cold. Her parents gave her a tablet of extra-strength Tylenol to ease her symptoms and, within hours, she died.

Six more deaths followed—the connecting factor between them was having taken extra-strength Tylenol shortly before passing away. It was later discovered that the tablets were laced with cyanide, a chemical that interferes with the body’s ability to use oxygen.

Johnson & Johnson, Tylenol’s parent company, had an ethical dilemma and a public relations disaster to contend with.

Baffled as to how the cyanide got in the tablets, Johnson & Johnson’s leaders acted quickly and pulled all Tylenol products off the shelves—31 million bottles worth over $100 million—and stopped all production and advertising.

The swiftness of their decision, although incredibly costly, put customers’ well-being at the forefront and saved lives.

Johnson & Johnson partnered with the Chicago Police, the Federal Bureau of Investigation (FBI), and the Food and Drug Administration (FDA) to track down the perpetrator who added cyanide to the medication. The company offered a $100,000 reward and provided detailed updates on its investigation and product developments following the crisis.

When it became clear that the killer had bought the product, laced it with cyanide, and returned it to store shelves undetected, Johnson & Johnson developed the first-ever tamper-resistant packaging. The “safety seal” that now covers the opening of most food and drug products was born.

“Our highest responsibility has always been the health and safety of our consumers,” a Johnson & Johnson representative wrote in a statement to the Chicago Tribune . “While this tragic incident remains unsolved, this event resulted in important industry improvements to patient safety measures, including the creation of tamper-resistant packaging.”

The Tylenol brand recovered from the incident, largely because of Johnson & Johnson’s leadership team’s swift action and transparent care for customers.

2. JetBlue’s Shutdown

On Valentine’s Day, 2007 , at the John F. Kennedy International Airport, JetBlue Airlines sent nine planes from the gate to the runway during a snowstorm, hoping conditions would rapidly improve—but it had no such luck.

The misstep caused the planes to sit on the tarmac for more than five hours with disgruntled passengers inside. The issue snowballed from there.

Since JetBlue employees had to work overtime to deal with the delays, few had enough allowable flight time to handle upcoming departures. JetBlue was left with no choice but to cancel 1,096 flights over the following five days.

CEO David Neeleman responded by writing an apology letter to customers and crafting a “ customer bill of rights ” that the airline still abides by. The document outlined customers’ rights to information about flights, as well as how they’d be compensated in the event of delays or cancellations.

Neeleman also went on a public apology tour, taking full responsibility for the incident rather than blaming it on the weather.

This response stands in contrast to the 2022 Southwest Airlines incident that played out similarly but with less accountability from leaders. Initially caused by bad weather and then exacerbated by Southwest’s outdated booking systems, the 16,700 canceled flights left thousands stranded between December 21 and 31.

In contrast to Neeleman’s apologies and emphasis on customer rights, Southwest CEO Bob Jordan took a defensive stance, explaining in a video the impact that “record bitter cold” had on all airlines and that Southwest was doing everything it could to remedy the issue. While those points may have been true, the response didn’t go over well with customers who wanted to feel respected and understood.

Each leader's choices highlight the importance of being transparent and championing customer rights when facing similar issues.

Related: The Importance of Reflective Leadership in Business

3. Starbucks’s Racial Bias Incident

If one of your employees made a critical decision based on racial bias, how would you respond? That was the question Kevin Johnson, then-CEO of coffee shop chain Starbucks, had to answer in April 2014 .

One day, two Black men entered a Starbucks in Philadelphia and asked to use the bathroom. The manager on duty told them the restroom was for paying customers only, so they sat down to wait for their friend to arrive before ordering.

The manager called the police, who arrested the men for trespassing. Although no charges were filed, the arrest went viral and sparked protests throughout the United States.

Starbucks, which prides itself on being an ethical brand , has one of the most diverse leadership groups in corporate America—five of the board’s 14 members are women, and five are from racial minority groups. This racially motivated incident clashed with its values.

Johnson fired the manager who called for the arrest, apologized to the two men, and announced racial bias training for all Starbucks employees.

To emphasize the training’s importance, Johnson closed 8,000 locations on May 29, 2018, to educate 175,000 employees. This cost Starbucks an estimated $12 million in lost profit but spread the message that it cares about its customers, employees, and society.

Related: How to Create a Culture of Ethics and Accountability in the Workplace

4. The Muse Sticking Up for Employees

Ethical dilemmas often aren’t public scandals—even quiet, internal decisions can have enormous impacts. Kathryn Minshew, CEO and co-founder of The Muse , faced one such scenario in the early days of growing the online career platform.

She’d just signed a company to use The Muse’s recruiting platform. It was a major deal, and the young startup desperately needed revenue. But during the onboarding process, Minshew noticed the client’s representatives were talking down to her junior staff members. While they respected her, how they treated her team didn’t sit well.

She spoke with the client about it, effectively providing a warning and a chance to start the relationship on a better note. Still, the poor treatment of her team continued.

Minshew had a decision to make: Take the revenue despite the mistreatment or part ways with the client to support her team. She went with the latter.

“I told them nicely that it didn’t make sense to work together anymore and refunded the unused balance of their money,” Minshew says in an interview with Fast Company . “They tried to argue, but at that point, my mind was made up. I didn’t realize how relieved my team was—and how much they appreciated it—until after it was all done.”

By cutting ties with the client, Minshew fulfilled her ethical responsibility to create an environment that supported her employees’ well-being and right to be treated respectfully. In doing so, she built a strong foundation of trust and demonstrated that she’d have their best interest in mind—even at the business’s expense.

“I think backing your team in situations like that is really important,” Minshew says in the same interview, “but it’s not always easy, especially when you’re early-stage.”

How to Develop Ethical Leadership Skills

While these scenarios likely differ from those you face at your organization, ethical leadership’s guiding principles ring true.

To build your ethical leadership skills , consider taking an online business ethics course. In Leadership, Ethics, and Corporate Accountability , Hsieh presents several real-world examples of ethical dilemmas, prompts you to consider how you’d respond to them, and then lets business leaders share how they handled each.

In the course, you also learn how to use frameworks and tools to conceptualize your responsibilities to stakeholders, make judgment calls in gray-area situations, and act decisively to reach optimal outcomes.

By learning from the challenges and triumphs of those who came before you, you can equip yourself to handle any ethical dilemmas that come your way.

Are you interested in learning how to navigate difficult decisions as a leader? Explore Leadership, Ethics, and Corporate Accountability —one of our online leadership and management courses —and download our free guide to becoming a more effective leader.

About the Author

A case study of ethical issue at Gucci in Shenzhen, China

• Published: 09 October 2012
• Volume 2 , pages 173–183, ( 2013 )

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• Li Wang 1 &
• Robin Stanley Snell 2  

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Introduction

Gucci is a multinational company with over 270 directly operated stores worldwide, serving customers of elite goods, and generating billions of dollars revenue per year. It has an iconic, even noble, luxury brand image in the Greater China region, where its revenue increased by 35.6% in the first half of year 2011. Gucci has expressed its intention to accelerate the process of opening stores on the Chinese mainland. Recently, however, the company came under fire after five former employees from its flagship store in Shenzhen revealed information online about inhumane working conditions and labor mistreatment in the company. This paper focuses on events that took place in a Gucci flagship store located in Shenzhen, China.

This paper has two main research objectives. The first is to analyze why labor abuses (as exemplified in the Gucci case) are allowed to occur and persist in foreign-invested firms that are located in the People’s Republic of China (PRC). The second is to develop a multi-stakeholder approach to preventing further abuses of this kind. The next section provides a description of the case, focusing on the ethically problematic labor management practices and arrangements and noting some legal violations. We shall then present three propositions regarding why some foreign firms operating in the PRC and host local governments ignore and/or tolerate labor abuses of this kind. We follow this with a section in which we apply two different approaches, traditional Confucian ethics on the one hand and modern labor rights theory on the other, to provide a robust ethical basis for stakeholders to argue from, while taking action to persuade others that such malpractices are ethically unacceptable. Next, after identifying four stakeholders for the Gucci case, we suggest how each of them may play a role in discontinuing and/or preventing future labor abuses. We conclude with some further theoretical and managerial implications.

Case description

The employees’ complaints.

On 8 October 2011, an open letter—<A Public Letter to the Top Management of Gucci from Former Employees who resigned collectively> was spread on the Internet. This letter was written by five former employees of the Gucci Shenzhen Flagship Store. In the letter, they alleged that employees caught an occupational disease, that there was one miscarriage attributable to excessive working hours and that there was no compensation for these hardships. Moreover, they stated that there were excessive restrictions on employees’ behavior, including the need to obtain permission before getting a drink or a snack, and strict limitations on toilet time. They stated that, while the restrictions were applied strictly to all frontline employees, including one who was pregnant, they were not applied to the managers. The letter also claimed that the employees had to pay compensation for any product that was stolen or went missing, even though these luxury products had already been insured. They also criticized Gucci’s goods exchange policies which appeared to be arbitrary and dependent on the manager’s mood. All in all, they accused Gucci of lacking systematic and humane management and complained that their rights and dignity were being violated.

Once revealed online, this report aroused widespread discussion among Internet users. Further information emerged, suggesting that the case also involved falsification of records about working hours, and the imposition of forced, unpaid overtime work. Gucci implemented a system of working one full day, followed by a day off. Officially, 1 day’s work was about 10 h. But the workers complained that, on their working days, they were required to clock off at a certain time to establish a false electronic record, and then continue their work, counting goods until two or three o’clock in the morning without compensation.

Some netizens labeled Gucci as a “sweatshop.” Many opined that the labor management practices of some multinational companies and brand owners failed to match their international status. Several days later, the Gucci headquarters in China issued a statement, saying that “Gucci does not and will not endorse or tolerate the alleged malpractices.” Gucci also stated that that the company had conducted thorough investigations and had implemented a series of measures, including the replacement of the store manager and assistant store manager. Meanwhile, the Human Resources Bureau within the Legal Department of Shenzhen’s Luohu District said they would further investigate the case. On 26 October 2011, Gucci and the former employees eventually arrived at a settlement in conjunction with Shenzhen Federation of Trade Unions.

How Gucci used the labor dispatch system

Dispatch is a labor management model which separates recruitment from employment. Relationships under the dispatch system are portrayed in Fig.  1 . The employee leasing companies have labor contracts with the workers, and they send workers to other companies in which these workers actually work. The labor contract relationship exists between the employee leasing companies and the dispatched workers, but the actual working relationship is between the workers and the companies in which they work.

Relationships under the dispatch system

In this form of employment, the company which actually “use” these workers is only responsible for paying wages, while other aspects, including social security and dismissal compensation are passed on to the employee leasing company. The labor dispatch arrangement serves to reduce the user companies’ costs and contractual responsibilities for the employee. They can incur lower training costs and are not required to make social security arrangements. Because of these features, this employment model is widely used in China. The Gucci stores in Shenzhen actually adopted an even more complex dispatch system, involving at least three employee leasing companies that were located in Shanghai.

Legal considerations

One legal consideration is that, although the labor dispatch system has been officially adopted as way of arranging temporary employment only, Gucci used the system to employ people for durations of more than 2 years. Another is that many of the Gucci store employees are female and that pregnant employees legally enjoy special labor protection. According to the “Labor Contract Law,” female workers during their pregnancy should not participate in the state’s third-grade physical intensive work. Such work is deemed not suitable for female workers; for female workers who are more than 7 months pregnant, there should be no overtime work, and they should not be required to join night shifts. Furthermore, it is a legal requirement that sufficient rest periods should be arranged for such employees.

Why do labor abuses happen in China?

Underpinning the legal considerations, the basic ethical issue in this case is the violation of labor rights, through non-remunerated and forced work, inhuman restrictions, and other unreasonable policies. Gucci is by no means the first multinational company that has been accused of operating a “sweatshop” in Asia. For example, Nike was involved in abusive practices in Indonesia (Krueger 2007 ). What is especially interesting about this case is that it involves retail employees rather than factory workers. Also notable is that such labor abuses are generally uncommon in the Western countries, where these multinational corporations (MNCs) are quartered. Why did they come to China and “collectively fall ill”? We envisage that there are three possible reasons: First, overtime work without payment and other illegal employment arrangements are tolerated among local firms, and when foreign brands and multinational companies come to China, it is an easy temptation for them to slide into these malpractices, while giving themselves the excuse that it is a way of “adapting to the environment” (Hofstede 1993 ), i.e., moral relativism. Hence,

Proposition One: A philosophy of moral relativism allows some foreign firms in China to level down to abusive but locally condoned labor management practices.

The second possible reason for the persistence of labor abuses in China involving MNCs is that these large companies do not pay attention to the labor laws, let alone lobby to strengthen the laws and their enforcement, because they think their investment will furnish the local government with a good-looking GDP and that this is all that matters to them. Hence,

Proposition Two: Some foreign firms in China are preoccupied with economic goals, assume that local governments share their preoccupation, and believe that, because of shared economic imperatives, they can ignore the labor laws with impunity (Gao 2009 ; Ip 2009 ; McDonald 1995 ).

The third reason is closely related to the second one and concerns how the pressures faced by local governments are reflected in their actual preoccupations. Despite movement toward the balancing of economic imperatives with social and environmental concerns under the “Harmonious Society” policy platform (See 2009 ), local governments still remain under pressure to meet economic targets. Although there is a considerable body of labor laws in the PRC, officials may perceive there is little risk of being punished if it is discovered that they have failed to enforce them. Furthermore, some local governments may be afraid that the strict implementation of the labor law will drive investors away and may consciously turn a blind eye to illegal and unethical practices by firms under their purview, resulting in lax monitoring and non-enforcement.

Proposition Three: Because some local governments perceive that economic imperatives override social responsibility concerns, they are lax in enforcing labor laws.

Two perspectives—how can we tell right from wrong?

We shall draw on two very different perspectives to conduct a moral evaluation of the labor management practices in the Gucci case. The first perspective is that of traditional Confucian ethics, the second is modern labor rights theory.

Confucianism

The core of Confucian ethics is comprised of five values. We shall focus on three of them—Ren, Yi, and Li. Ren is a capacity for compassion or benevolence for fellow humans. It is essentially expressed in social relationships. One can have a harmonious relationship with others and thinking about others’ stakes when doing business draws on Ren (Wang and Juslin 2009 ). In effect, Ren expresses the Confucian formulation of the Golden Rule: People should not do to others things that they do not want others to do to them. Consideration for others, caring for others, and loving others means Ren. By contrast, in the Gucci case, the management operates only with the economic interest of company in mind, with no regard for workers’ basic needs. It abused the dispatch system for the sole purpose of lowering the cost of hiring people, without considering workers’ needs for adequate salaries, social insurance, training … etc, thereby failing to practice Ren.

Of equal importance in Confucian ethics is Yi, which concerns the morality of righteousness. It is the capacity to discern appropriateness and the right direction for actions, relationships, and other human matters. Helping people when they are in need is one expression of Yi, but in the Gucci case, Yi is absent. For example, the employee who was pregnant should have been treated with special care, and help should have been given to her when she needed it, but to the contrary, long working hours and strict working restrictions led to her miscarriage.

Third, Confucian morality is regulated by Li, or decorum. This consists of a body of norms, rites, and unwritten understandings that govern and regulate social action in every aspect of daily endeavor (Lau 1992 ). Respecting people and their dignity involves Li, but according to the employees’ allegations, the management did not respect their dignity. Subject to many unreasonable restrictions, they were treated as if they were mere instruments to make money, rather than as human beings with dignity, and did not receive due respect and appropriate treatment.

A related aspect of Confucianism concerns the respective duties of the parties in a dyadic relationship. The junior party has the obligation to serve and obey the senior party, and the senior party has the responsibility to teach, lead, and look after the junior party. Applied to modern employment relationships, this would entail a benign arrangement under which the employees would be recognized and cherished as a key stakeholder group of the company, with which the company would build and maintain a cooperative relationship and seek win–win outcomes. “Squeezing” rather than nurturing employees may save economic costs and lead to more profits in the short-term, but, as in this particular case, is likely to give rise to low morale among employees and may lead to emotional distress and physical harm. The long-term risks include that employees will make their grievances public and that the company’s reputation will be harmed as a result.

Labor rights

In the advanced Western economies, the moral basis of human rights has been incorporated into legal rights. There are strong and well-enforced government laws and regulations and established labor to advocate and negotiate on behalf of workers; well-developed nongovernmental organizations (NGOs) and independent media make problems transparent and advocate remedies. There are also high levels of citizenship education. Worker rights and protections have thus been institutionalized within a system of law and democratic political accountability, and are monitored by unions, NGOs, and educators. Through these processes, public expectations of the ethical behavior of corporations have become progressively stricter; cases of labor abuse still occur but appear to be relatively uncommon rather than endemic (Greenwood 2012 ).

In China, however, labor rights turn out not be widely institutionalized and legal rights turn out not to be strongly enforced, allowing employers as the stronger party to exploit the employees as the weaker party. While there are differences between Western countries and China, all people in the world share the need for some basic characteristics of human dignity that ought never to be violated, regardless of social context (e.g., whether one lives in a rich or poor society) and thus regardless of whether they have an abundance of employment choices or nearly none, or whether they have adequate institutional mechanisms to protect their interests.

It is ethically insufficient for corporations merely to “do in Rome as Romans do.” Expedient moral relativism should be replaced by broader and “thicker” moral norms that have universal application. The Universal Declaration of Human Rights Article 5 states that “No one shall be subjected to torture or to cruel, inhuman or degrading treatment or punishment.” And Article 23 section (3) states that “Everyone who works has the right to just and favorable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.” The practices adopted by the management of Gucci in Shenzhen appear to have violated the Universal Declaration of Human Rights.

Stakeholders and their relevant stakes

To prevent the further occurrence of abusive practices in labor management requires efforts from various groups. In working out who needs to do what, we first need to define who the relevant stakeholders are (Argandona 1998 ). According to Freeman ( 1998 ), the stakeholders are defined as “any group or individual who can affect or is affected by the achievement of the firm’s objectives.” That is, we need to identify which groups can be affected by these abuses and which groups can prevent them (Carson 1993 ; Maak and Pless 2006 ). Stakeholders include the following.

The company and its shareholders, whose stake is that the company’s reputation should be rebuilt. This scandal may disrupt Gucci’s expansion plans in China, so the company has a strong incentive to take positive action repair the harm to its reputation there.

Employees: Regardless of whether an employee has resigned or still remains in employment with Gucci, he or she will require apologies and appropriate compensation. In addition, the current employees are likely to desire the adoption of more systematic management methods and improved working conditions.

Chinese government: It is the Chinese government’s responsibility to ensure that worker’s rights are enforced, especially on its own territory and that companies operate in accordance with the laws there.

Foreign (home) governments: Foreign governments have a stake in every firm that is headquartered in their territory, including those with subsidies in overseas countries, such as China. They can take action to reduce the incidence of labor abuses in China by enacting laws that are similar to the anti-bribery treaties that have been passed in many countries (OECD 2001 ).

Possible solutions

Action coordinated by Gucci: One means for a solution is for Gucci to lead efforts in developing and implementing industry-wide and worldwide codes of ethics, thereby creating a comprehensive set of explicit norms and expectation about ethical standards. This code should apply to all branches and stores in both developed and less developed countries (Beschorner and Müller 2007 ). Such codes have been successfully implemented by industries such as toys, textiles, and electronics. Those kinds of products are sold to mass markets. It is something of a paradox that Gucci, which sells a high-end product, has provided a poor working environment in China; surely a company like this is even more subject to public scrutiny and now under public pressure to adopt higher standards. We do not wish to imply that employees in mass market industries should be treated any worse, but one may expecte high-end providers to exert stronger ethical leadership worldwide in improving labor standards. The code should require every branch and stores of companies in the luxury industry to embrace ethical principles and embed them into management systems and policies and internal review processes.

Informed by common areas of worker rights identified in the literature on international labor management ethics, this code could include items on the following: use of written employment contracts with all workers, avoiding abuse of the dispatch system, equal pay for work of equal value, prohibition of compulsory and unpaid work, adherence to laws and regulations on working hours, provision of wages and benefits not below minimum legal requirements, anti-discrimination, anti-harassment, anti-abuse, and respect for occupational health and safety.

In addition, the establishment of a socially responsible management systems should include a statement of social responsibility objectives and targets, along with sufficient human and financial resources to ensure that these objects and targets are clearly communicated, that the system is adequately implemented, and that there are mechanisms for regular monitoring and auditing of the system and for corrective action in the event of shortfalls (Carroll 1991 ; Carroll and Horton 1994 ; Gond et al. 2011 ).

Simply implementing an industry code is not enough. The headquarters of Gucci, Italy, should urge and encourage its branches in China to comply with the necessary ethical standards in China (and every other host country). The encouragement needs to be strong, because managements in China may seek excuses and claim that there would be inordinate financial costs, or that the code may be difficult to implement because of cultural barriers. The headquarters may arrange for auditing by independent third parties, such as NGOs. Otherwise the enforcement might be weak or non-existent.

Action by employees : “Tolerance” is deeply rooted in Chinese people’s thoughts, and most of the time, it is even considered as a virtue (in contrast to assertiveness). In this case, we may notice that employees were tolerant of abusive practices until severe harm actually happened (the female employee’s miscarriage). The Chinese workers’ awareness of their rights may have been weak, and they appear to be accustomed to enduring their unjust treatment, which perpetuates the abusive practices. As China’s capitalism has been rapidly evolving, the institutional arrangements involved in human resource management, such as the labor dispatch system, have become increasingly complex and subject to abuse. In order to protect employees, it is of utmost importance to challenge the mindset of tolerance and to equip employees with a strong awareness of rights and of suitable ways to protect themselves collectively. They should be encouraged to get together and make their voice heard (like writing a public letter on the Internet). By voicing their grievances, they can attract more attention, thus win more support, and the relevant government departments are more likely to investigate into their concerns. Furthermore, they could express their hope to form organizations which have similar functions to those of independent trade unions in western countries, thereby helping them gain bargaining power vis-à-vis employers (Preuss et al. 2009 ).

Action by the Chinese government : It is recommended that the Chinese government should revise its entire approach to the monitoring and regulation of labor rights. “Harmonious Society” pronouncements have been a step in the right direction (See 2009 ), but there is much further to go. Workers in China are under-protected because there are few organizations that workers can appeal to, and trade unions in China do not serve the same purpose as in Western countries. It’s difficult for workers to stand up for themselves when their rights are at stake. In Western countries, companies are under the scrutiny of various NGOs and trade unions; these organizations protect workers’ labor rights through collective bargaining power. On the surface, this is paralleled in China by The Constitution of the People’s Republic of China, which requires that all its citizens have the rights of freedom of speech, freedom of the press, and freedom to peaceably assemble, organize, demonstrate, and petition. However, in practice, in order to organize in mainland China (i.e., to establish an NGO), one has to register the organization according to the Social Organizations Registration and Administration Act. If the organization does not do this, it is not protected under the law. It is criminal for such an organization to publicly accept outside donations without a legal status. In addition, to establish such an NGO, they must have a regular business location, full-time staff, a registration capital of more than thirty thousand yuan and official documents with a stamp of approval from the governmental agencies, which have been designated as “supervising offices.” This complex and time-consuming process makes it virtually impossible to form a NGO in China unless the government is prepared to champion and support the process. Another barrier is that every non-governmental organization will be co-administered by a civil affairs governmental office. This unique “Chinese way” of double administration weakens the independence of an NGO. Nonetheless, the Chinese government could consider having experiments in certain industries. China is now the biggest luxury-product-consuming country, as well as the biggest luxury-product-manufacturing country, so it has both the biggest customer group and labor force of the luxury industry worldwide. The Chinese government should consider giving permission to set up such a non-governmental organization with independent powers, to monitor these luxury multinational companies’ operations in China.

Action by foreign governments : A foreign government is typically responsible for creating and enforcing laws that apply to all the companies operating in their country, including MNCs that are operating subsidiaries all around the world, including China. A Western country could simply enact a law requiring all companies to apply fair and decent labor standards worldwide. The detail of such legislation is of course a much more complex matter that we can discuss in this article. The basic idea is that, if a company violates labor standards in China, it could then be prosecuted in the home country by the respective Western government. This arrangement might be championed by supra-national bodies, such as the United Nations, but again, we do not have space in this article in detail of the legislation process; it would help greatly if there is close collaboration between the Chinese government, Western countries, and supra-national bodies.

Theoretical and managerial implications

There are some key theoretical and managerial implications of this case. The first of these concerns the limitations and possible distortions of the virtue-based approach to business ethics as it has been applied in China. While some managers may recognize that a virtue-based Confucian firm should seek harmony by expressing benevolence to its employees, who would reciprocate with loyalty and gratitude, some key aspects of this approach can be forgotten when facing modern economic pressures. What may be remembered by managements is that Confucian ethics is based on the premise of inequality between the senior and junior parties in the relationship and that the junior party is expected to go along with whatever treatment they receive without direct protestation. What may be forgotten by managements is that all this is premised on the assumption that the senior party should consider, respect, and be responsive to the needs of the junior party. Such empathic concern is unlikely to flourish without a channel for listening and without a powerful incentive to listen. In their absence, all-powerful managements become de-sensitized from the concerns of their employees, and labor abuses will ensue.

From this, a second implication can be inferred. In order to prevent labor abuses in the PRC, it is necessary to institute strong, legally based mechanisms for enforcing and protecting labor rights. Conveying legitimate bargaining rights to labor organizations that correspond to their independent trade union counterparts in the West is one key step in this process. The second key step is for the national and local governments in the PRC to join hands in assigning a higher priority to encouraging and supporting corporate social responsibility, no longer relegating this to an afterthought or empty, token slogan. This, in turn, implies a role for foreign firms and foreign governments. Strengthening legal safeguards for labor rights in Chinese organizations is likely to require cross-national dialogues within corporations and between foreign governments and the government of the PRC.

Does this need for legal underpinning imply that the Confucian cultural legacy has no role to play in underpinning labor rights and preventing labor abuses in the PRC? Actually, this is not the case. Although concern about the Confucian virtues appear insufficient to constitute a safeguard against ethical violations in China-based firms, the picture may be radically transformed if legal imperatives are introduced that would serve to remind managements about the need to listen, understand, and respond to the needs of their employees. Confucian values originated in ancient times, when “rule of man” prevailed and when modern rule of law was inconceivable. China, having rapidly and breathtakingly developed into a modern society within the last two decades, is probably ready now to undergo the truly revolutionary process of blending Confucian morality and the Western rights-based paradigm into a moral compass that is more suitable for the contemporary world (Snell 2001 ).

Conclusions

Allegations of abusive labor practices in MNCs are by no means new phenomena but have typically referred to manufacturing sites in less developed countries. This paper highlights a less-extensively documented phenomenon, featuring abuses happening at a retail store—Gucci’s Shenzhen flagship store. Specifically, Gucci abused the dispatch system, which is a labor system with Chinese characteristics, and neglected some key labor rights. In considering how an MNC can operate ethically in China, we have considered some universal interpretations of labor rights, while taking account of Confucianism and the One-Party state, which are foundational components of China’s culture and institutional framework (Liou 2010 ). We have made recommendations for action by MNCs and other stakeholders, namely, employees, the Chinese government, and even foreign governments, where these can exert legal influence over MNCs that are headquartered in their jurisdictions. We have also foreshadowed the possibility, in the near future, of a fusion between Confucian virtue ethics and Western rational–legal approaches to the assertion and protection of labor rights and the profound practical and theoretical implications that would ensue.

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Wang, L., Snell, R.S. A case study of ethical issue at Gucci in Shenzhen, China. Asian J Bus Ethics 2 , 173–183 (2013). https://doi.org/10.1007/s13520-012-0024-6

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Received : 27 February 2012

Accepted : 25 September 2012

Published : 09 October 2012

Issue Date : July 2013

DOI : https://doi.org/10.1007/s13520-012-0024-6

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“Ethical Dilemmas in Business: A Case Study Exploration”

Objective: To investigate and analyze real-world ethical dilemmas faced by companies, understand the consequences of ethical decision-making, and propose ethical solutions.

Introduction to Business Ethics

Start the project with an overview of business ethics, emphasizing the importance of ethical decision-making in business and its impact on various stakeholders.

Case Study Selection

• Choose a set of real-world case studies involving ethical dilemmas in business. You can find case studies from reputable sources, such as Harvard Business Review, business ethics textbooks, or online business ethics databases.

IKEA Case: One Company’s Fight to End Child Labor

Speak Up or Stay Silent: A New Employee Confronts Strange Sales Reports

Philanthropy, Corruption, and Dave’s Volunteer Journey in the Dominican Republic

A High-Stakes Deal for a Young Senior Vice President

Google’s Handling of the “Echo Chamber Manifesto”

Wells Fargo Banking Scandal

• Assign each student or group a specific case study to analyze. Ensure that the selected cases cover a range of industries and ethical issues.
• Background of the company and industry.
• The ethical dilemma faced by the company.
• Stakeholders involved and their interests.
• Consequences of the company’s decisions on stakeholders.
• Introduce various ethical theories and frameworks (e.g., utilitarianism, deontology, virtue ethics) to help students analyze the ethical dilemmas in their case studies. Here are some key ethical theories:
• Key Idea: Deontological ethics, often associated with Immanuel Kant, focuses on the inherent nature of actions rather than their consequences. It emphasizes duty, moral rules, and the concept of “categorical imperatives” – actions that are inherently right or wrong.
• Example: Kantian ethics might argue that lying is always morally wrong, regardless of the circumstances, because it violates the principle of honesty.
• Key Idea: Consequentialist theories, such as utilitarianism, evaluate the morality of actions based on their outcomes or consequences. The emphasis is on maximizing overall happiness or utility.
• Example: Utilitarianism might support a decision to sacrifice one person’s well-being for the greater good if it results in a net increase in overall happiness.
• Key Idea: Virtue ethics, associated with Aristotle, focuses on the character of the individual and the cultivation of virtuous traits. It suggests that ethical behavior arises from good character rather than adhering to rules or seeking specific outcomes.
• Example: Virtue ethics might encourage honesty as a character trait, rather than prescribing specific rules about when lying is acceptable.
• Key Idea: The ethics of care emphasizes relationships, empathy, and the importance of context in moral decision-making. It is often applied in situations involving caregiving and relationships.
• Example: In the ethics of care, the moral course of action might be determined by considering the impact on the well-being and relationships of those involved.
• Key Idea: Social contract theories, like those proposed by Hobbes, Locke, and Rousseau, explore the idea that ethical principles are agreements made among individuals in a society. People agree to follow certain rules for the sake of mutual benefit and social order.
• Example: The social contract might justify laws and regulations as necessary for maintaining social harmony and protecting individual rights.
• Key Idea: Rights-based ethics, influenced by thinkers like John Locke, focuses on the inherent rights of individuals. It asserts that people have certain fundamental rights that should be respected and protected.
• Example: The right to freedom of speech might be considered a fundamental right that should not be violated, even in cases where expressing certain views may be unpopular.
• Key Idea: Feminist ethics critiques traditional ethical theories for their often male-centric perspectives. It emphasizes the importance of equality, inclusivity, and challenging traditional power structures.
• Example: A feminist ethical analysis might question the gender bias in certain workplace policies and advocate for changes that promote equality.
• Ask students to propose ethical solutions to the dilemmas presented in their case studies.
• They should consider the long-term consequences and the impact on different stakeholders.

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• Each student or group will prepare a presentation summarizing their case study analysis.
• Presentations should include a clear description of the ethical dilemma, an analysis of the decision-making process, and proposed ethical solutions.
• Encourage discussions and questions after each presentation to explore different perspectives on ethics.
• After all presentations, facilitate a group discussion on common themes, ethical principles, and the challenges of making ethical decisions in business.

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Ethical Dilemmas: How Scandals Damage Companies

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Ethics. Values. These things are extremely important to working professionals in any industry.  In fact, 73% of professionals say they take an organization’s values into account and would not apply to a company unless its values aligned with their own. Furthermore, 82% of workers say they would prefer to be paid less and work for a company with ethical business practices rather than receive higher pay at a company with questionable ethics.

Business leaders need to work to ensure their organization is one with high morals, principles, conduct, and ethics so that employees feel comfortable and confident there. Employees who believe in your corporate principles and conduct and share your values are a huge asset to the organization. Employees and management alike can work together to create businesses that have high standards.

Unethical businesses also lose favor with consumers. 43% of consumers have stopped buying from brands they find unethical and 71% say they carefully consider corporate values when making a purchase.  Trust is vital for consumers to feel comfortable and confident with their purchases. Business ethics is its own set of morals and values that are vital in a workplace or corporation. Business ethics involves the industry, their business practices, how they deal with customers, profits, legal issues, and corporate conduct. Management needs to focus on business ethics as an important pillar of their corporation in order to make sure customers are happy with the appearance of their workplace..

The workplace should focus on their ethics and values so they can attract the right employees and consumers alike. The more willing a workplace is to create a mission that demonstrates their ethical values, the more likely the organization is to thrive and succeed. rates their ethical values, the more likely the organization is to thrive and succeed. In fact, recent reports show businesses that have ethical workplace cultures outperform their competitors—but especially in stock price growth.

Ethical scandals in business can deeply hurt the look of a corporation, which can make employees and consumers get a bad taste in their mouth about the morals of the company. How a company reacts to ethical scandals and dilemmas that happen on a small level will say a lot about their core practices and values. As a student of business, it’s valuable to learn from business scandals to understand what to avoid or watch out for in business ethics of a company, as an employee and as a consumer. Utilize your time as a student to learn from examples that can give you a deeper understanding as you prepare for a business career.

What are Examples of Business Scandals?

United airlines.

It’s hard to forget the scandal United Airlines faced after security officers forcefully dragged a passenger off an overbooked flight. While it’s perfectly legal for airlines to overbook flights and equally legal for them to request certain passengers get off the flight, many consumers say they were disappointed with how the company handled the situation. This ethical dilemma of how to handle a consumer who wasn't cooperating showed a. lot about corporate practice for United Airlines.

Additionally, the apology and statement from the United Airlines CEO seemed lukewarm to many consumers. The apology seemed to back up employees, but didn’t really express remorse or regret about the situation. This is a business ethics situation where consumers wanted to hear that their corporate practice involved consumers and customers coming first.

This entire ethical scandal lead many customers to cut up their United Airline loyalty cards, cancel flights, or book with another airline. Many consumers still talk about this incident and use it as an example for reasons to avoid United Airlines, stating their business ethics aren't what they should be.

Equifax faced a large ethical scandal when hackers stole data from more than 148 million consumers. After the fact, the research found that the systems Equifax was using were old, and their security systems were out-of-date and could have been updated to prevent the breach. This is an example of business ethics where small businesses and big companies alike have a duty to ensure the are following guidelines for a safe work environment and safe opportunities for consumers.

Beyond the breach itself, Equifax didn’t report the stolen data for two months. This means that for two months, consumers who had their data stolen were walking around, with no idea there could be any issues. This lead the Equifax CEO to step down, and nobody knows where the data is, or who has it. The ethics in this situation focus on honesty and integrity, and the best ethical choice would have been for Equifax to immediately admit that something had gone wrong.

Equifax has worked to right the wrong by paying out consumers whose data could be compromised. But unfortunately, there is only so much they can do at this point. Consumers expect business ethics from Equifax and other financial institutions that keep sensitive data to be up-to-date on security measures and do their due diligence to make sure data is kept safe. 

Enron faced an ethical accounting scandal in 2001 after using “mark-to-market” accounting to fake their profits and misused special purpose entities, or SPEs. Enron worked to make their losses seem less than they actually were, and “cooked the books” to make their income look much higher than it was. 

Enron stock plummeted after the news got out, and the SEC began an investigation.

That ethics investigation lead to jail time for many Enron executives, and their accounting firm Arthur Anderson lost all of their clients and eventually was dissolved. Enron filed for bankruptcy, and new laws were introduced based on this scandal to prevent similar situations. This is a case where business ethics means that honesty and full transparency is what companies and consumers should expect.

Google may be one of the largest companies in the world, but it’s not immune from ethical dilemmas and business ethics scandals. As of 2019, Google is facing a fine from the EU, with the EU saying that Google abused their dominant position and forced AdSense customers to sign contracts saying they wouldn’t accept advertising from rival search engines. This is an example of business ethics where consumers expect organizations to be fair in their treatment of consumers and of rivals. Especially when a company dominates the market, the ethics involved have to be more strict.

Google has been fined a total of $9.3 billion by the EU for antitrust issues, ranging from mobile market dominance to manipulating search results. They are now facing a probe from the United States Justice Department. Google has released statements saying they’re working to make changes so all companies are represented fairly on their platform. Users have been unhappy when they’ve discovered the problems that Google is responsible for, but as the company works to institute changes, they are also winning back consumers. As Google works to improve their business ethics practices, they will appeal to their consumers again.

What are Ethical Dilemmas in Business?

An ethical dilemma is a paradox that comes up when there are two or more options, but neither of them are the best ethical or moral option. False accounting, sexual harassment, data privacy, nepotism, discrimination—these are just some of the ethical dilemmas that happen in today’s workplace. Many business owners and managers will deal with ethical issues at some point in their career. For this reason, it’s crucial for every business—no matter the size—to create a code of ethics. Not only will it establish a foundation of trust between employees, customers, investors, etc., but it will help ensure your business is operating within the law.

Promoting Ethics in Business

Big scandals are just the tip of the iceberg when it comes to business ethics. There are small, daily decisions happening with executives, managers, and employees that all make up a company’s ethical behavior. There are issues that the public doesn’t hear about that could be impacting culture and performance negatively inside an organization. 

As a business student, it’s important to understand how to be ethical in a company now. Making decisions on your values and morals will help you be prepared to face ethical dilemmas in the future. There are many ways you can be ethical, including being honest with other employees and the public, whistle blowing on misconduct, paying employees what they deserve, not tolerating theft, being unwilling to participate in questionable accounting, respecting the environment, and refusing gifts from vendors in exchange for better treatment.

How Can I Handle Ethical Dilemmas in the Workplace?

To be prepared to handle company ethical dilemmas, you should try the following.

1. Decide what your ethics are before you start a job. Understand what your values, your personal mission statement, and your goals are in order to help you know ahead of time how you'll behave in an ethical dilemma.

2. Communicate with your manager. Management should be made aware of any areas that you feel are ethically questionable. This is usually best done via email, so you have record and proof or your actions. Be sure to let your manager know the entire situation, and how you feel about it. If a manager is behaving unethically, you can send an email explaining your feelings and concerns.

3. Work with HR if necessary. Sometimes management doesn't respond or react when you bring up ethical dilemmas at the office. If this is the case, go directly to your human resource manager and work with them to know how to best handle the situation.

4. Know when to get out. If you believe a company is going to continue unethical behavior, it's up to you to get out of the company. Work to find another job at a company that you feel will uphold your ethical standards. There is nothing wrong with leaving a job because you believe they are being unethical, and it can end up being good for you in the long-run.

If you’re hoping to be successful in business, understand that the best thing you can do for your employees and your consumers is to practice ethical behavior. Business ethics can be a slippery slope, so it's best to ensure you know what your personal ethics are, so when a conflict or challenge arises, you know exactly what you will do. Ethics are a vital element of becoming successful in business, and the more prepared you are, the better your career will be.

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Ethical Dilemma: 10 Heartbreaking Case Studies

Last updated on April 2, 2024 by Alex Andrews George

In a small village in Maharashtra, a teacher named Ravi and his wife Maya, a nurse, faced a tough choice after an earthquake.

The only hospital in the village was damaged, and they could only save one life with the limited medical supplies: Maya’s critically injured mother or a young and bright boy from Ravi’s school, who also needed urgent surgery.

Choosing between saving Maya’s mother, who meant everything to her, or the young boy, who represented the village’s future, was heartbreakingly difficult.

This story highlights the painful decisions we sometimes must make, where saving one life means losing another, testing our deepest values and principles.

Based on this story, we dive into the complex world of ethical dilemmas and moral conflicts, where choices are never black and white, and every decision carries the weight of unforeseen consequences.

Table of Contents

What is an ethical dilemma?

An ethical dilemma occurs when a person is faced with a situation that requires a choice between two or more conflicting ethical principles or values .

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In such dilemmas, no matter what choice is made, some ethical principle is compromised.

The essence of an ethical dilemma is that it involves a difficult decision-making process where, typically, a clear-cut right or wrong answer doesn’t exist, or if it does, it may carry significant negative consequences for someone involved.

Definition of ethical dilemma

An ethical dilemma is a complex situation that often involves an apparent mental conflict between moral imperatives, in which to obey one would result in transgressing another.

It’s characterized by:

• Conflicting Values: Individuals or organizations must choose between competing ethical principles or values.
• No Perfect Solution: Each choice involves a compromise or violation of an ethical principle.
• Significant Consequences: The choices have significant potential impacts on the well-being or rights of individuals or groups.

5 Cases of Ethical Dilemma

Ethical dilemmas can arise across various fields and situations, reflecting the complexity of moral decisions in real-world scenarios. Here are more examples:

1. Loyalty to the employer vs. the moral obligation to protect the public and the environment

• An employee discovers that their company is engaging in illegal activities, such as dumping toxic waste into a river, which is both environmentally damaging and a serious health hazard to nearby communities.
• The employee faces an ethical dilemma between reporting the misconduct, potentially leading to legal action against the company and safeguarding public and environmental health, and remaining silent to protect their job and the livelihoods of their colleagues.
• Ethical Dilemma: Loyalty to the employer vs. the moral obligation to protect the public and the environment.

2. Upholding academic integrity vs. loyalty to a friend.

• A student witnesses a close friend cheating during an important exam.
• If the friend is reported and found guilty, they could face severe consequences, including failing the course or expulsion, which might ruin their academic career and future prospects.
• The student is torn between reporting the cheating, which is an honest action, and protecting their friend’s future.
• Ethical Dilemma: Upholding academic integrity vs. loyalty to a friend.

3. The safety of passengers vs. the safety of pedestrians

• Programmers of autonomous vehicles face an ethical dilemma in creating algorithms for unavoidable accidents.
• For example, if an accident is inevitable and the choice is between altering the vehicle’s path to avoid hitting a pedestrian, thereby endangering the passengers, or protecting the passengers at the cost of the pedestrian’s life, how should the car be programmed to act?
• Ethical Dilemma: The safety of passengers vs. the safety of pedestrians.

4. The duty to report news truthfully vs. the potential harm to public safety and societal peace

• A journalist obtains exclusive footage of a terrorist group committing an atrocity.
• Publishing the footage could inform the public about the severity of the situation and the threat posed by the terrorist group, but it could also spread fear, possibly lead to public panic, and serve the terrorists’ goal of gaining attention for their cause.
• Dilemma: The duty to report news truthfully vs. the potential harm that such reporting might cause to public safety and societal peace.

5. Upholding the client-lawyer confidentiality vs. the moral responsibility to prevent future crimes.

• A defence attorney knows their client is guilty of a serious crime and intends to commit similar crimes in the future.
• The attorney faces an ethical dilemma between maintaining client confidentiality, a cornerstone of legal ethics, and the moral obligation to prevent future harm.
• Ethical Dilemma: Upholding the client-lawyer confidentiality vs. the moral responsibility to prevent future crimes.

These examples highlight the range and depth of ethical dilemmas that individuals can face, requiring them to weigh competing values and principles against the backdrop of potential consequences for their actions or inactions.

Moral Conflicts

Ethical dilemmas and moral conflicts are closely related concepts that often overlap in discussions of ethics and morality, but they can be distinguished by their context and the nature of the choices they involve.

Ethical Dilemma

An ethical dilemma arises when a person must choose between two or more actions that have ethical implications, making it difficult to decide what is the right or wrong course of action.

Ethical dilemmas often involve a decision-making process where each option violates some ethical principle or value, leading to a situation where no choice is entirely free from ethical fault.

These dilemmas typically occur within a specific professional, societal, or organizational context and involve considering external codes of ethics, laws, or social norms.

Moral Conflict

Moral conflict, on the other hand, refers to a situation where an individual’s values, principles, or beliefs conflict, leading to an internal struggle about the right course of action.

Moral conflicts are deeply personal and subjective, focusing on an individual’s conscience and moral reasoning rather than external rules or codes.

While ethical dilemmas might require an individual to choose between competing external obligations or duties, moral conflicts involve a more introspective struggle with one’s values and beliefs.

Key Differences Between Ethical Dilemmas and Moral Conflict

• Context: Ethical dilemmas often involve a choice between actions in a professional or social context, where external codes of conduct or laws must be considered. Moral conflicts are internal struggles over personal values and beliefs.
• Nature of Conflict: Ethical dilemmas typically involve competing ethical principles or obligations, where adhering to one may lead to the violation of another. Moral conflicts are about reconciling conflicting personal morals or values.
• Resolution: Resolving an ethical dilemma often involves choosing the “lesser evil” or the option that upholds the most critical ethical principle in a given context. Solving a moral conflict might require personal reflection, growth, and a deeper understanding of one’s own values.

While they are distinct, ethical dilemmas and moral conflicts can occur simultaneously, complicating the decision-making process further.

A person might face an ethical dilemma at work (e.g., whether to report a colleague’s wrongdoing) that also triggers a moral conflict (e.g., loyalty to a friend versus commitment to honesty).

This interplay underscores the complexity of ethical and moral reasoning in real-world situations.

5 Cases of Moral Conflicts

Moral conflicts arise when individuals face situations requiring them to choose between two or more conflicting moral principles or values. Here are five examples illustrating such conflicts:

1. Honesty vs. Compassion

• Situation: You find out that a close friend has lied on their resume to get a job they desperately need.
• Conflicting Morals: The value of honesty (telling the truth or reporting the lie) conflicts with compassion (understanding your friend’s desperate situation and wanting to support them).

2. Loyalty vs. Justice

• Situation: A family member is involved in a minor legal infraction and asks you to provide them with an alibi to avoid consequences.
• Conflicting Morals: Loyalty to your family member, wishing to protect them, conflicts with your sense of justice and the importance of facing legal consequences for one’s actions.

3. Self-sacrifice vs. Self-preservation

• Situation: During a disaster, you have the opportunity to save others by putting yourself in significant danger, or ensure your own safety, knowing others might not survive.
• Conflicting Morals: The principle of self-sacrifice, putting the needs of others before your own, conflicts with self-preservation, the instinct to protect oneself from harm.

4. Equality vs. Meritocracy

• Situation: In a workplace, you must decide between promoting an employee who has worked longer at the company (seniority) and another who has shown exceptional skill and productivity but has less tenure.
• Conflicting Morals: The value of treating everyone equally and fairly conflicts with meritocracy, where rewards are based on individual achievement and capabilities.

5. Freedom vs. Security

• Situation: In governing a community, you must decide whether to implement strict security measures that infringe on personal freedoms to ensure public safety.
• Conflicting Morals: The importance of individual freedom and autonomy conflicts with the collective need for security and protection from harm.

These examples highlight the complexity of moral conflicts, where deciding in favour of one value inevitably leads to the compromise or negation of another , reflecting the nuanced nature of ethical decision-making.

Also read: Ethical Concerns and Dilemmas In Government And Private Institutions

The moments of ethical dilemmas and moral conflicts challenge us to weigh our values against the harsh realities of our circumstances, pushing us to make decisions that can redefine who we are and what we stand for.

The story of Ravi and Maya, the couple torn between family and community, serves as a poignant reminder of the complex nature of ethical decision-making .

Such dilemmas compel us to question not just our morality but the very essence of what it means to be human.

They remind us that there are no easy answers in the pursuit of doing what is right.

Whether it’s choosing between fairness and loyalty, or the welfare of one versus the greater good, these decisions are laden with the weight of potential regret and the hope for understanding and forgiveness.

In conclusion, ethical dilemmas and moral conflicts are not mere philosophical quandaries to be pondered from afar; they are real, lived experiences that test our integrity , empathy , and courage.

As we tread this precarious path, let us strive for a balance between our duties to others and our commitment to our principles, recognizing that we can confront and navigate these dilemmas that ultimately define our humanity.

The journey through these challenges is arduous and fraught with uncertainty, but it is also a testament to the strength and resilience of the human spirit, ever aspiring to a higher standard of morality and justice.

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• Leadership Ethics Cases
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Eight common ethical dilemmas business owners face (and how to overcome them).

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Ethical dilemmas are commonplace in society, but when a business experiences one, the impact (and potential fallout) can have a wide reach.

In many cases, ethical dilemmas are challenging to work through because the risk and reward aren't as clear-cut as other types of decisions. This complexity becomes even more convoluted with businesses, as other businesses, customers and employees can all be affected. Below, eight leaders from Young Entrepreneur Council examine some of the more common ethical dilemmas business owners may face and offer their advice on how to overcome them.

Young Entrepreneur Council members offer their tips for how to overcome these ethical dilemmas.

1. Supporting Other Businesses When Money Is Tight

Sometimes business owners have to choose between keeping costs down to survive and supporting other businesses. This is a difficult choice to make and one with significant impact on different people. It helps to find alternative ways to do your part in helping other businesses. It doesn't always have to be about money. If you want to support other businesses and avoid losing money, you could cross-promote other businesses or help in different ways. Keep an open mind and keep looking for solutions and you could come up with interesting ways to help your business and others around you. - Syed Balkhi , WPBeginner

2. Compromising On Product Quality

Compromising on product quality is usually the first place business owners go to make a few extra bucks. Cheaper cost of goods sold looks great on a spreadsheet, but the reality of the situation is your customers will notice. In most industries, the goal is to maximize the lifetime value of the customer. It is very important to put your best foot forward with your product quality and not try to cut corners. If there’s a manufacturing error, don’t sell it. If the software is buggy, don’t ship it. If the food isn't cooked right, send it back. It’s always financially beneficial in the long term to do the right thing. Give the customer the highest quality you can for the money they’re paying you. - Michael Fellows , Patriot Crew

3. Offshoring Your Manufacturing

I once consulted with an entrepreneur who was passionate about manufacturing in the U.S., but who unfortunately found out through market testing that the customers could only tolerate a price point that was too low for this manufacturer to provide. So their ethical dilemma was whether or not to offshore their manufacturing. In the end, they came to terms with the market price, and then, while they chose to manufacture offshore, they ended up forming a strong relationship with the provider and built up enough trust in ethical practices. This was the only way for the small brand to take a toehold in the market. Once they gain enough traction, they hope to move their operations back to the U.S. and command a higher price point. - Kaitlyn Witman , Rainfactory

4. Letting Clients Go

Walking away from toxic clients can be a common ethical dilemma. It's hard to know what the right thing to do is if they are bringing good income into your company and there are contracts signed. But if it's a toxic relationship, boundaries need to be set. If those aren't working, the relationship needs to end—as difficult as that can be. - Diego Orjuela , Cables & Sensors

5. Responding To Employee Social Media Behavior

The question of how to respond to employees' social media behavior outside of work is a difficult one. It's sometimes hard to draw the line. It's entirely justifiable to fire an employee over poor behavior on their personal social media accounts, but it's sometimes tricky to determine exactly when that line is crossed. In today's day and age, there's no excuse for crossing a boundary on social media. Internet etiquette is taught to everyone these days. So if your employee, no matter how valuable they are, crosses a line into propagating hate speech or is discriminating against a particular community of people, then I'd let them go. - Amine Rahal , IronMonk Solutions

6. Keeping Employees Because Of Seniority

Keeping employees around because of seniority is an ethical dilemma. It's normal for business owners to feel that they should be good to people who have been around a company for a long time. However, the people who got you to where you are today are not necessarily the ones who are going to get you to where you need to go in the future. It can be counterintuitive and downright heartbreaking, but keeping people around too long is actually unethical. Business owners may want to keep a "family" atmosphere within their team, but as Reid Hoffman, founder of LinkedIn, says in his book The Alliance , teams are gauged on performance, and you can be cut from the team. Having people on the team who are incompetent destroys the morale of the competent ones on the team. Know when to terminate! - Matt Wilson , Under30Experiences

7. Accepting Job Applicants From Competitors

We recently had an implementation consultant apply to our firm who was coming from another firm in a similar space. The applicant was willing to jump ship without notice and even threw out that some clients would probably come with her. While it could seem easy to take a person with such experience, how they treat their former employers is how they will also treat you one day. If things don't feel right in your gut before day one even happens, it may be best to steer clear. - Marjorie Adams , Fourlane

8. Creating Honest Marketing

Being honest with your marketing message is one of the biggest ethical dilemmas that the modern business owner faces. A casual review of your social media feeds will quickly reveal that using unethical manipulation, misleading your market and overpromising benefits is still rampant across industries. The good news is one of the best ways to stand out in your marketplace is to actually care about your customers and tell the truth. Instead of rushing the sale, what I’ve found that works really well is to show your marketplace that you can help them by delivering valuable content that actually helps them solve real challenges they're having. By doing this, you generate incredible amounts of goodwill and trust with your market and this trust leads to more sales over a longer period of time. - Joe Stolte , The Tractionology Group

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• Framing the Issue of Firearms
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• International Public Law & Transnational Law
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• National Firearms Strategies & Action Plans
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• Firearms Trafficking as a Cross-Cutting Element
• Organized Crime and Organized Criminal Groups
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• Gangs - Organized Crime & Terrorism: An Evolving Continuum
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• Firearms as Evidence
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• Defining Organized Crime
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• Activities, Organization, Composition
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• Mutual Legal Assistance (MLA)
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• Transfer of Sentenced Persons
• Module 12: Prevention of Organized Crime
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• Structure and Flow
• Recommended Topics
• Background Materials
• What is Sex / Gender / Intersectionality?
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• Organized crime and Terrorism - International Legal Framework
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• Terrorism and Trafficking in Weapons
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• Trafficking in Persons and Terrorism
• Intellectual Property Crime and Terrorism
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• Macro-Perspective in Addressing Smuggling of Migrants
• Human Security
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• Migration & Migrant Smuggling
• Mixed Migration Flows
• Social Politics of Migrant Smuggling
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• Profile of Smugglers
• Role of Organized Criminal Groups
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University Module Series: Integrity & Ethics

Module 12: integrity, ethics and law.

  This module is a resource for lecturers  

Case studies.

Choose one or more of the following case studies and lead a discussion which allows students to address and debate issues of integrity, ethics and law. If time allows, let the students vote on which case studies they want to discuss.

For lecturers teaching large classes, case studies with multiple parts and different methods of solution lend themselves well to the group size and energy in such an environment. Lecturers can begin by having students vote on which case study they prefer. Lecturers could break down analysis of the chosen case study into steps which appear to students in sequential order, thereby ensuring that larger groups stay on track. Lecturers may instruct students to discuss questions in a small group without moving from their seat, and nominate one person to speak for the group if called upon. There is no need to provide excessive amounts of time for group discussion, as ideas can be developed further with the class as a whole. Lecturers can vary the group they call upon to encourage responsive participation.

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Case Study Application of an Ethical Decision-Making Process for a Fragility Hip Fracture Patient

In Canada, up to 32,000 older adults experience a fragility hip fracture. In Ontario, the Ministry of Health and Long Term Care has implemented strategies to reduce surgical wait times and improve outcomes in target areas. These best practice standards advocate for immediate surgical repair, within 48 hours of admission, in order to achieve optimal recovery outcomes. The majority of patients are good candidates for surgical repair; however, for some patients, given the risks of anesthetic and trauma of the operative procedure, surgery may not be the best choice. Patients and families face a difficult and hurried decision, often with no time to voice their concerns, or with little-to-no information on which to guide their choice. Similarly, health-care providers may experience moral distress or hesitancy to articulate other options, such as palliative care. Is every fragility fracture a candidate for surgery, no matter what the outcome? When is it right to discuss other options with the patient? This article examines a case study via an application of a framework for ethical decision-making.

INTRODUCTION

Every year, over 30,000 Canadian older adults experience a fragility hip fracture. The Ministry of Health and Long Term Care of Ontario has promoted best practice recommendations which advocate for immediate surgical repair, within 48 hours of admission, in order to achieve optimal recovery outcomes. ( 1 , 2 ) The majority of patients are good candidates for surgical repair; however, given the risks of anesthetic and trauma of the operative procedure, surgery may not be the best choice for all. The patients at higher risk of poor outcomes perioperatively deserve the opportunity to explore options and articulate their values. Unfortunately, as a short pre-operative interval predicts the best outcomes, patients and families face a difficult and hurried decision, potentially with limited time to voice their concerns, and little to no information on which to guide their decision.

From a systems perspective, quality of care and health outcomes have not always incorporated the patient-centred perspective. ( 3 ) Patient-centred care is “a moral concept and philosophy, considering it to be the right thing to do when designing and delivering respectful, humane, and ethical care”. ( 4 , 5 ) Patients and families have reported in the past that they feel left out of crucial conversations and decisions surrounding care, ( 6 ) and that relevant information is not always provided. ( 7 )

To better understand the underlying ethical complexities which arise from critical decisions in the acute care setting, this paper will examine a case study to demonstrate application of the Corey et al . ( 8 ) 8-step framework (see Appendix A ) for ethical decision-making.

Ms. Jones is 93 years old and lives in a Long Term Care residence. She was admitted to hospital with a fragility hip fracture after being found on the floor in the middle of the night. Ms. Jones has dementia and is unable to make her own decisions. She has limited mobility, previously used a walker. Her two daughters are at her bedside. They state her health has been declining over the last few weeks, with increasing confusion and she now rarely leaves her room.

On admission, the team discovered a pleural effusion, taking up much of her right lung. Her pre-operative assessment also revealed a heart murmur; the resulting echocardiogram demonstrated a heart in very poor condition, with significant valve issues. Between her cardiac and pulmonary function, the surgery poses an increased risk of perioperative complications—she may never survive the surgery, or come off of the ventilator once she is intubated.

Interprofessional teams (surgery, anesthesia, nursing) are of differing opinions. The issue at hand is very difficult. The family is informed that the risk of not having surgery will likely result in death, yet in this patient’s case, proceeding with surgery carries its own risk. The family is left with an hour to think things over. Should they pursue the palliative care route or proceed with surgery?

Step 1. Identify the Problem or Dilemma

In our case study, 93 year old Ms. Jones is admitted to hospital with a fragility hip fracture. As a first step, we must recognize that there is actually an ethical dilemma; in this case, the dilemma is whether the patient should proceed with surgery or not, given her underlying medical conditions and potential for perioperative complications. We also need to acknowledge that there is an underlying assumption from all involved (staff, Ms. Jones’ family) that surgery will occur, and that health-care providers (HCPs) may not clearly articulate the option of ‘no surgical intervention’. The stakeholders who are required to proceed through the decision-making process include the patient and family, the surgical team, anesthesia, nursing staff, social work, and potentially the palliative care team and bioethics team.

Step 2. Identify the Potential Issues Involved

There are several assumptions made when a patient presents to the hospital with a fragility hip fracture: a) the fracture will be repaired; b) the patient will recover; and c) the patient will eventually go home or to rehabilitation. With a critically ill, frail, and/or previously compromised patient, this standard trajectory should be questioned. Barry and Edgman-Levitan ( 9 ) promote an ideology of patient-centredness, with the argument that an intervention should only be considered standard if there is ‘virtual unanimity amongst patients about the overall desirability… of the outcomes’.

The first potential issue is the ‘standard’ intervention of surgical repair—the assumption to proceed with the surgery, as directed by best practice recommendations. Is this standard intervention appropriate in all patients with a fragility hip fracture? A second potential issue arises with the patient and their family—the presumption that the acute medical issue will be resolved and the patient will eventually return home. Given her underlying health, this concept is in jeopardy. To add to the complexity, Ms. Jones is likely not able to articulate her wishes and values, as she has dementia. Finally, there is the potential issue of moral distress experienced by health-care providers (HCPs) who feel uncomfortable with the expectant surgical trajectory of this patient, and may feel they are not empowered to advocate for the wishes of the patient.

As health-care professionals, we are guided by moral principles in our decision-making process, namely, autonomy, non-malfeasance, beneficence, justice, fidelity, and veracity. ( 10 ) A focused examination and application of the principles to the case study will help to support potential resolutions for the identified issues.

The spirit of ‘patient-centred care’ endorses that patients should be involved at their level of choice to make an autonomous decision. ( 11 ) However, it is important to recognize that no decision is made in isolation. ( 12 ) The decision at hand is not a simple or straightforward one; literature demonstrates that patients and families have a difficult time with making decisions at time of a critical illness, identifying fear, worthlessness, and a lack of autonomy within the hospital system. ( 7 ) Differing levels of patient and family participation requires an individualized approach to convey meaningful, accurate, and timely information. ( 8 ) Older adult patients tend to take a ‘non-participative’ stance in their care. They often have limited participation in the process for decision-making for a variety of reasons, thereby increasing the risk of their inability to understand or find value within the end decision. ( 6 , 7 , 13 )

Non-malfeasance

Hospitalization can cause the patient to experience “needless mental and physical suffering” ( 14 ) in any number of ways (i.e., pain, waiting for surgery, uncertainty of outcomes, patient/family relationship stress). Evidence indicates that the number of different HCPs involved causes immense anxiety to the family, especially when they do not hear the same message from all members of the team. ( 13 , 15 ) HCPs must ensure that they are not withholding information, or are untruthful as to the options in order to expedite a decision. A study by Ekdahl, Andersson, and Friedrichsen ( 13 ) found that physicians perceive they are ‘too short’ of time for patients to participate in the decision making process, that decisions were ‘too complex’ and ‘time consuming’ to fit into the schedule. Ekdahl et al. ( 13 ) also found that physicians feel frustration with the ‘health-care production machine’, especially in those older adult patients with multiple co-morbidities.

Beneficence

Beneficence promotes wellbeing; or is an action that is carried out to benefit another. ( 8 ) The hospitalization ‘process’ promotes assessment of a patient, treatment of the illness, followed by a physical approach to recovery (allowing recovery to be measured against specific milestones), and discharge in a timely manner. ( 15 , 16 ) This ‘process’ may promote beneficence in an overarching global perspective of the system; however, on an individual level, it often falls short. On an individual level, key actions that have been found to be beneficial and meaningful are open communication and sharing of information. ( 6 , 7 , 14 , 17 )

“Practitioners have a responsibility to provide appropriate services to all clients”. ( 8 ) Older adult patients may not receive information about options available, especially if the HCPs feel that it would take too much time to thoroughly explain, or if HCPs assume that patients are too ill to participate in the decision-making process, ( 13 ) or if the assumption is made that all patients want to proceed with surgery. Focusing on each older adult’s individual health goals is time-consuming—in this case, the patient has dementia, and a family meeting would be required. The concept of patient-centred care revolves around patient and HCP partnerships, yet older adult patients face unique problems with hospitalization—a slower communication process, a decreased level of functioning, and a degree of family involvement. ( 14 ) Can we provide this type of relationship and communication effort equally for every patient? Or only for those patients who may be at higher risk of negative outcomes?

Fidelity and Veracity

Fidelity involves fulfilling ones’ professional roles, creating a trusting relationship, and veracity ensures that we are truthful and honest to the patients. How do we ensure that as a HCP we are providing an unbiased opinion? Do we take the same amount of time to present patients with the option of conservative, non-surgical treatment, including palliative care, as we take to advocate for surgery? The HCP team assumes that patients will commit to surgery; however, a patient often displays a suboptimal understanding of the risks and benefits of surgery. ( 18 ) Similarly, there is the very real risk of bias towards an argument of palliative care in those frail patients or those with dementia. HCPs must return to the voice of the patient through their family, to understand that patients’ identity, their meaning of life, and desired goals which emphasize the patients’ dignity. ( 12 )

It is important to acknowledge assumptions that the patient and family may have made upon admission to hospital—that surgery will occur and the patient will recover. Have we presented the patient and their family with as much information as they need to make a decision in a clear format (without medical jargon)? In addition to understanding risks of surgery, it is paramount that the family understands the non-surgical option may result in death or decreased function (if any functional ability returns). It is in an acute situation such as this that families require truthful and open communication with physicians, nurses, and other members of the health-care team. ( 11 )

Self Care (HCPs)

Can we consistently provide care that prioritizes a patient’s values? HCPs are not always able to preserve all of the values and interests at stake. ( 19 ) We know that the most common cause of moral distress in nursing is prolonged, aggressive treatment which we do not believe will be likely to have a positive outcome. ( 20 ) As a HCP, we must look to root causes operating within the larger system, to prevent and/or respond to feelings of moral distress. ( 19 )

From a systems perspective, does the hospital provide an avenue for exploration of patient values within a timely fashion? Is there a framework in place to enhance the HCP’s understanding of moral distress and provide strategies for coping with situations such as these (i.e., an opportunity for a team debriefing with the entire team, or opportunities for learning how to deal with situations that may cause moral distress)?

Step 3. Review the Relevant Ethics Codes

The philosophy of patient-centred care within the hospital encourages active listening, respect, and an attempt to understand individuals. The Canadian Medical Association (CMA) supports “practicing the profession of medicine in a manner that treats the patient with dignity and as a person worthy of respect”. ( 21 ) The College of Nurses of Ontario (CNO) supports the view that nurses “must use the client’s views as a starting point”. ( 22 ) Across all HCPs is the similarity of the need to listen, understand, support, and advocate for a respect of patients’ values with the expected course of treatment.

The importance of collaboration with the patient and respecting a patient’s values are highlighted within similar statements: ”…it is the patient who ultimately must make informed choices about the care he or she will receive”. ( 21 )

Step 4. Know the Applicable Laws and Regulations

In Ontario, legislation and common law require that the wishes of patients or substitute decision-makers be respected. ( 22 ) However, in many systems, health care is not truly patient-centred; rather, patients are required to adapt to the system. ( 11 ) A number of initiatives have been undertaken in the last few years in an attempt to improve the focus of patient-centredness, with the principle assertion that patients should be involved at the level of their choice. ( 11 )

Step 5. Obtain Consultation

It is important to realize that we bring our own biases to the decision-making process, making it difficult to view the current patient/family’s situation objectively. As an individual HCP, our previous experiences will have an impact on the messaging that we provide. From a systems perspective, we are likely to pose a ‘knowledge’ bias towards meeting treatment based outcomes—for example, surgery within 48 hours, immediate post-operative mobility, and the expected length of stay for this type of patient.

Inter-disciplinary consultations with patients and their families ensure review of unbiased information about the risks and benefits of proceeding with surgery, allowing for a fully informed decision. In addition to discussing the operative plan with the surgical team, there is an opportunity to provide Ms. Jones’ family with other options that may be available to her. Consultation with extended family members, clergy, social workers, or an ethics team may help the family to reflect on the patient values; what this illness means to them as a family unit, and how best to proceed. A discussion with palliative care may help the family to better understand what symptom management consists of for their mother. Social work may also be able help explore community services available to the family in this situation—for example, is the patient able to return to home with the future of wheelchair dependence? Are there any other options which may be available to this patient and her family that were not originally considered? How do we, as HCPs, ensure that the family is afforded the opportunity to obtain all the necessary information from differing disciplines to make an informed choice?

Step 6. Consider Possible and Probable Courses of Action

In order to fully understand the options, it is helpful to outline all the possible and probable courses of action that are open to Ms. Jones and her family.

• Surgical team offers a ‘purposeful pause’ to discover Ms. Jones’ core values; to discuss the consequences of a) delaying surgery, b) proceeding with surgery, and c) the non-surgical intervention. From an ethical and legal perspective, this may meet the concept of patient-centred care, but does not likely provide the patient and her family with all the information they need to make an informed choice. They may have more questions that the surgical team may not be able to answer, or they may request more time to consider. Additionally, the patient and her family would still be expected to adapt to the system in place in order to make a decision within the proposed wait time frame (admission to surgery less than 48 hours).
• Advocate for a family meeting with the primary nurse, social work, palliative care team, clergy, internal medicine, in addition to the surgical (surgeon, anesthesia) team, to fully explore both options, and to explore what the ‘non-surgical’ option would mean. From a legal and ethical perspective this embodies the concept of patient-centred care, with as many members of the health-care team at the table to help Ms. Jones’ family fully explore their options.
• Apply the current standard of care recommendations to Ms. Jones’ situation, without consideration of the patient’s needs, values, or preferences. From an ethical and legal perspective, this approach does not represent patient-centred care.

Step 7. Enumerate the Consequences of Various Decisions

With the first option, the surgical team takes a ‘purposeful pause’ to discover the patient’s core values and discusses pros and cons of a surgical intervention. Often, this may be most ‘efficient’ way to deal with the situation at hand. It may also be the preference of the patient; some patients have reported that they value this limited level of involvement—“I get a description of what is going to happen”. ( 13 ) As a consequence, there will be a number of patients who will want to have a greater sense of involvement other than a simple description of planned events. The first option does recognize the principle of autonomy, but does not follow the principle of justice; practitioners have the responsibility to provide information about other options which may be available. The principles of beneficence and non-maleficence are not completely met, as the team approaches the solution primarily to benefit the system (i.e., efficiency). The principles of fidelity and veracity are also partially met, as the surgical team provides an honest perspective, although it may be biased towards proceeding with surgery.

The second option, offering the patient and her family a meeting with all stakeholders, strongly aligns with the fidelity and veracity principles. The information offered is truthful and complete, and is in Ms. Jones’ best interest, as it attempts to discover her values that will affect the family’s final decision. Principles of beneficence and autonomy would be met with patient empowerment through information sharing, and secondly, by allowing the patient and family to arrive at their own decision with that information. As a consequence, taking the time to arrange for a family meeting with all stakeholders may not be possible for all patients, and the principles of justice and non-maleficence are brought to the forefront for future patients. A potential consequence could be harm to the patient, as the time it takes to arrange a meeting could push the time to surgery beyond the recommended 48 hours post-admission, placing the patient at greater risk of negative post-operative outcomes.

The third option is one of passive action, with a lack of communication and recognition of patient-centred care values. Ms. Jones would be placed on the operating room list, and the surgical repair will occur. Consent must legally be obtained for the surgery; however, the family may not think of key questions to ask that may be relevant in this situation. The onus remains on the HCP to provide a full explanation of all options to the family. The only benefit would be to the system, as the procedure will be carried out in a timely manner. Ms. Jones may benefit from the surgery; we cannot assume that surgery is a negative option. As a consequence of this option, HCPs do not explore patient values, and this option is against almost all of the ethical principles. Additionally, this option is likely to cause the highest moral distress amongst staff, as they are unable to meet the unique needs of Ms. Jones and her family.

Step 8. Choose what Appears to be the Best Course of Action

Virtue ethics asks us if we are doing the best action for our patients, and compels us to be conscious of our behaviours. ( 8 ) We need to take the necessary time to discover the patient’s values within the unique situation they are now experiencing. Simply stated, we need to remember that they are a person, with feelings, emotions, past experiences, future hopes/plans, and usually an element of fear and anxiety. The goal is to work with Ms. Jones and her family to decide together on the current care plan and the best plan for action (or inaction), a plan that truly aligns with the patient’s values.

From an ethical perspective, the best course of action is to hold a family meeting with all stakeholders to discover Ms. Jones’ values about a meaningful life and a meaningful death, and come to a consensus as to what the right decision is for this patient. ( 12 ) The team must ensure that the patient and the family have all the necessary tools in which to make this decision. Have we provided them with all the information required? Do they understand the information? Do they understand the consequences of their decision? From a systems perspective, we need to continue to strive towards engaging patients and family members more fully and consistently in care and decision-making processes. ( 6 ) Dissemination of lessons learned from assisting patients and families through difficult decision-making may be helpful to other health-care teams experiencing similar moral conflicts.

As a next step, the HCP team may consider development of an educational reference for future patients to assist with similar decisions, including promotion of an advanced care plan to help communicate goals and concerns to HCPs. ( 12 , 18 ) Additionally, decision aids, such as videos and brochures, can help deliver information to patients and their families. ( 9 ) The use of readily available technology, such as iPads and cellphones, means that families are better able to access these materials at any time of day. A recent Cochrane Review demonstrated that, in comparison to usual care, decision aids can increase knowledge, resulting in a higher proportion of patients choosing the option which most aligns with their values. ( 23 ) Providing patients with information that outlines potential options with risks and benefits clearly explained can also meet many of the ethical principles that are to be considered with ethical decision-making.

The in-depth review of the case study has helped us to examine the underlying issues that come into play when helping this patient and her family to make a critical decision. Although each patient is an individual, literature tells us that many perceive the concept of patient-centredness to represent an ‘involvement in their care’. The level of involvement may vary from person to person, but all patients want the care they receive to reflect their values and preferences, and to make them feel that they have been treated as a whole person. ( 24 )

Clinicians also like to believe that they deliver patient-centred care, yet the characterization of the concept will vary with the health-care provider, their relationship with the patient, and the circumstances surrounding the admission to hospital. Recognizing that there is potential for an ethical dilemma when patients present with a critical illness is important to ensure that we continue to act upon the key concept of understanding a patients’ values and proceeding to align provision of care with those values.

ACKNOWLEDGEMENTS

The author wishes to acknowledge Dr. Tracy Trothen (Queen’s University) for her time and expertise as a ‘practical ethicist’.

Appendix AFramework for Ethical Decision-Making (Corey et al ., 2014)

• Identify the problem or dilemma
• Identify the potential issues involved
• Review the relevant ethics codes
• Know the applicable laws and regulations
• Obtain consultation
• Consider possible and probable courses of action
• Enumerate the consequences of various decisions
• Choose what appears to be the best course of action

CONFLICT OF INTEREST DISCLOSURES

The author declares that no conflicts of interest exist.

8 Important Business Ethics Cases

For those interested in researching some interesting ethical businesses cases, there are plenty from which to choose. Business leaders may feel squeezed by shareholders to produce profits.  Some have made some ethical blunders in an attempt to remain competitive. Others have used their size to squeeze out the competition.  The following includes some important business ethics cases based on well-known organizations:

• Enron – Questionable accounting practices and manipulation of the energy supply brought down this company. Enron: The Smartest Guys in the Room is an excellent documentary movie that explains the scandal.  Check out an excerpt from Enron’s Code of Ethics.
• Monsanto – Monsanto has been criticized for its mega-size.  Critics fear they are taking over the food supply as well as creating negative environmental issues. Check out Monsanto’s Code of Ethics for Chief Executives and Senior Financial Officers.
• Arthur Andersen – Arthur Andersen is known for its unethical auditing practices. Check out The Fall of Arthur Andersen for more complete details.
• WalMart – Studies have shown that WalMart may save people money but they may also negatively impact communities.  Their low prices may also hurt suppliers. The company received criticism when leadership announced they wanted to hire healthier, more productive employees. WalMart has been accused of being anti-union and has survived sweatshop and discrimination scandals. Check out WalMart’s Statement Regarding Code of Ethics .
• Countrywide – The company offered subprime loans that later resulted in default.  Critics have claimed that Countrywide employees told clients that their properties would increase in value and that their loans would be able to be refinanced when market values rose.  The market values declined causing many to lose their homes.  Check out Countrywide’s Code of Ethics .
• Beechnut – Beechnut’s ethics came into question when it was discovered that they were selling “apple juice” to foreign countries that contained something less than apple juice.  For more information on this scandal, check out Beechnut’s History and Apple Juice Scandal .
• Starbucks – Clustering strategy may force smaller companies out of business. There were so many Starbucks on street corners that movies like Best In Show made fun of how there might be one Starbucks right across the street from another.  Check out Starbucks’ Code of Ethics for CEO and Financial Leaders.
• Nike – Manufacturing practices included producing shoes offshore to save money. Nike has used its share of sweatshops in manufacturing. They have come under fire for human rights violations. Check out Nike’s Code of Ethics.

Related Articles:

• Code of Ethics for:  Amazon, Apple, Dell, Facebook, Google, Intel, LinkedIn, Microsoft, Twitter and Yahoo!
• Top 10 Company Mission Statements in 2011
• Business Ethics:  Ethical Decision Making & Cases – For more business ethics cases including Coca-Cola, Tyco, PETCO and Home Depot.

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Harvard Business School examines DBS' AI strategy and implementation in its first case study focusing on AI in an Asian bank

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Sep 16, 2024, 10:00 ET

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Authored by Feng Zhu , HBS Professor of Business Administration, the case highlights the bank's use of AI and takeaways for companies navigating technological change

SINGAPORE , Sept. 16, 2024 /PRNewswire/ -- Harvard Business School (HBS) has published a case study on DBS' strategy towards Artificial Intelligence (AI), highlighting the bank's use of AI. Developed over the course of eight months, the case is the first relating to AI that HBS has done on an Asian bank, and the first for a Singaporean company.

Authored by Professor Feng Zhu, MBA Class of 1958 Professor of Business Administration at HBS and Co-Chair of the Harvard Business Analytics Program, the case maps the bank's strategy and implementation as it industrialised its use of AI since 2014 to unlock business value, as well as how DBS is now approaching Generative AI.

Professor Zhu has authored over 80 articles, cases, and notes in prestigious practitioner and academic journals, including the Harvard Business Review, American Economic Review, and Management Science. His research has also won international awards, such as the Inaugural Practical Impacts Award from the INFORMS Information Systems Society, which recognises business school academics with outstanding leadership and sustained industry impact through their research.

Professor Zhu said, "The case study on DBS illustrates how AI technologies can potentially transform traditional industries, such as financial services, while driving value creation. By integrating AI into core processes, companies can unlock new potential for customer-centricity and operational excellence."

DBS has scaled the use of AI across all parts of the bank, embedding the technology into use cases to enhance customer experience and boost employee productivity. For instance, DBS leverages AI to generate hyperpersonalised nudges to enable customers to make better investment and financial planning decisions, provide relationship managers with deeper insights to better engage their customers, and develop tailored career and upskilling roadmaps to help every employee build long-term careers with the bank.

DBS CEO, Piyush Gupta , said, "AI is shaping up to be an absolute game changer in the way we live and work. DBS has been working with AI for over a decade now, and in recent years, we've managed to industrialise the use of AI across the bank. We today deploy over 800 AI models across 350 use cases, and expect the measured economic impact of these to exceed SGD 1 billion in 2025, after sequential doubling in the last few years. More importantly, the infrastructure and governance framework we established during our AI journey have put us in good stead to unlock the potential of Generative AI while managing its emergent risks."

The case will be taught in the HBS Master of Business Administration (MBA) Program, the Senior Executive Leadership Program – China , as well as executive education courses relating to AI and digital transformation.

In 2023, DBS was ranked #1 for AI Strategy Leadership in the Global Evident AI Index, an independent benchmark which ranks 50 of the largest financial institutions in North America , Europe and the Asia-Pacific based on their approach towards AI readiness. Overall, DBS ranked #10, and was the only Asian bank to be in the Index's Top 10. In 2024, Celent, a leading global research firm focused on technology for financial institutions, recognised DBS with a Global Model Bank Award for AI Industrialisation.

The case study can be accessed at:  https://www.hbs.edu/faculty/Pages/item.aspx?num=66332

DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore , DBS is in the three key Asian axes of growth: Greater China , Southeast Asia and South Asia . The bank's "AA-" and "Aa1" credit ratings are among the highest in the world.

Recognised for its global leadership, DBS has been named " World's Best Bank " by Global Finance, " World's Best Bank " by Euromoney and " Global Bank of the Year " by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named " World's Best Digital Bank " by Euromoney and the world's " Most Innovative in Digital Banking " by The Banker. In addition, DBS has been accorded the " Safest Bank in Asia " award by Global Finance for 15 consecutive years from 2009 to 2023.

DBS provides a full range of services in consumer, SME and corporate banking. As a bank born and bred in Asia , DBS understands the intricacies of doing business in the region's most dynamic markets.

DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting businesses for impact: enterprises with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping underserved communities with future-ready skills and helping them to build food resilience.

With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit  www.dbs.com .

SOURCE DBS BANK LTD

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Harvard Business School examines DBS’ AI strategy and implementation in its first case study focusing on AI in an Asian bank

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Case Study: Mowall - Upcycled Modular Wall Solutions for Sustainable Interiors

In the face of growing sustainability demands in the construction industry, Mowall emerges as an innovative solution aimed at reducing the environmental impact of building materials. Mowall is a modular partition wall system designed to transform waste into valuable, sustainable interior solutions.

By extending the lifecycle of particle boards and plywood, Mowall offers a system that is not only visually appealing but also aligns with the sustainability goals of modern workspaces and exhibitions.

Key Objectives

Mowall was developed with two primary objectives:

1. Sustainable Design:

To create a modular wall system that meets the increasing demand for flexible and sustainable interior solutions.

2. CO2 Emission Reduction:

To minimize carbon emissions by optimizing production processes and utilizing recycled materials.

Commitment to Sustainability

At the heart of Mowall lies a deep commitment to sustainability, addressing the critical issue of waste management in Europe, where over 8 billion tonnes of furniture are disposed of each year. Mowall takes a proactive approach to repurpose waste materials that would otherwise contribute to landfill and CO2 emissions.

Material Sourcing

Mowall modules are crafted from 100% recycled particle boards or plywood, materials that would typically end up in landfills or incineration.

Eco-Design Principles

The design of Mowall modular walls adheres to eco-design principles, ensuring minimal environmental impact throughout their lifecycle. Additionally, Mowall includes traceability features, allowing customers to track the origins and environmental footprint of the materials used.

CO2 Emission Reduction

By recycling furniture waste instead of incinerating it, Mowall saves approximately 804.3 kg of CO2 emissions. When factoring in the avoided use of new materials, the total CO2 savings rise to 1,128.4 kg (N. Skliarov).

Reverse Logistics

Mowall incorporates a reverse logistics system to manage the end-of-life cycle of its products, further enhancing sustainability.

Applications and Impact

Mowall is particularly well-suited for coworking spaces, exhibitions, and other flexible interior environments. Its modular design allows for easy installation, reconfiguration, and removal, making it ideal for spaces that require frequent updates or changes. Beyond its practical benefits, Mowall’s aesthetic appeal and sustainability credentials make it a preferred choice for architects and designers committed to reducing the environmental impact of their projects.

The deployment of Mowall in various settings is already contributing significantly to waste reduction and lower CO2 emissions in the construction and design industries. Each installation reinforces the broader industry movement towards more sustainable practices.

Mowall exemplifies how reclaimed materials can be transformed into high-performance, sustainable products that meet the needs of modern interior design. By reusing waste plywood and particle board, Mowall not only tackles the critical issue of construction waste but also plays a vital role in reducing CO2 emissions. As the industry continues to seek sustainable solutions, Mowall stands out as a versatile and sustainable option for a wide range of applications.

By incorporating innovative strategies like Mowall, we can move closer to a sustainable future in construction and design, where environmental impact is minimized, and resources are efficiently utilized.

Knof on 2050 Materials

MOWALL on 2050 Materials Platform

The collaboration between 2050 Materials and Knof marks a major milestone in promoting sustainable design and construction practices. By showcasing Knof’s products on the 2050 Materials platform , this partnership aims to accelerate the adoption of sustainable building materials, driving meaningful change in the industry.

Explore Mowall’s properties and material details on the 2050 Materials platform .

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Case Study | How to Create the Perfect E-Commerce Site

• Brian Baskin

Key insights

• A website should accomplish two goals: tell a brand’s story, and sell its products. It's often difficult to strike this balance given the constraints of the e-commerce format and conflicting visions within companies.
• The homepage remains the ideal place for storytelling, but most visitors now come in through the product page, where they expect to find appealing imagery and easily accessible information on sizing, shipping and other key details.
• Recommendations and personalisation can help to drive sales and shape customers’ understanding of a brand. Different parts of a website can be tailored according to broad consumer segments or even individual shoppers.

A brand’s website needs to perform one of retail’s most delicate balancing acts. Ideally, it should tell a brand’s story and simultaneously maximise e-commerce revenue with a convenient and intuitive product-discovery and checkout process.

In reality, brands rarely manage to accomplish both of those missions. Often, fashion e-commerce sites lean too heavily in one direction or the other: Lush graphics, videos and immersive storytelling might captivate and inspire one customer while alienating another who wants to quickly find and purchase a dress to wear to their sister’s wedding. Swing too far in the other direction and brands risk limiting their digital homes to Amazon-style online experiences with little in the way of personality.

“The website very much does need to tell the brand story and to bring people into the world of the brand,” said Tammy Smulders, chief executive at Trends&Culture, a creative agency that has designed websites or apps for Bottega Veneta, Off-White, Ganni and other companies. “But at the same time, for most brands, the website is their single biggest store.”

To further muddy the waters, where brands once viewed their site as the centre of their online world, today they are far more likely to make their deepest connections with consumers on social media. Rather than being where customers start to learn about a label, the site is now the end of their journey through a brand’s universe — a journey that ideally ends with a sale.

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Meanwhile, the commerce side of the website has become more and more central. Shoppers frequently arrive at brands’ and retailers’ sites through side doors, like Google searches and social media, that take them directly to product pages. Perhaps one in five site visitors actually type a brand’s URL into their browser, Smulders said (though she added that for a buzzy, well-known label the share could be as high as 50 percent). For many customers, the product page may be their first or only impression of the brand, and where a rising share of consumers decide whether or not to make a purchase.

In the US, 38 percent of apparel sales took place online in 2023, up from 27 percent in 2019, according to Euromonitor. That figure is even higher in parts of Asia.

Yet despite the critical importance of a brand’s website, many companies are still failing to provide shoppers with the best experience. Baymard Institute, a research and consulting firm specialising in web design, found that 94 percent of e-commerce sites fall short in at least one of five key areas, such as search and navigating product pages. Those remaining 6 percent can’t rest on their laurels; today’s best practices when it comes to both aesthetics and the user experience start to look “dusty” within three years, and require a total overhaul within five, Smulders said.

This case study will break down the two site missions — storytelling and commerce — into their components and explore how an organisation can achieve success on each front, focusing on the customer journey up until checkout (for more on that crucial last element, please see BoF’s December 2022 case study, “ How to Take the Friction Out of Commerce ”).

For insight, The Business of Fashion consulted leading web design and branding experts who have worked with companies in every corner of the industry, from fast fashion to luxury, apparel, accessories and even beauty. This report will also example how one company, J.Crew, approaches fundamental elements of its website, including discovery and the all-important product page.

Brian Baskin is Executive Editor at The Business of Fashion. He is based in New York and oversees BoF's beauty, retail, direct-to-consumer, technology, marketing and workplace verticals.

• Retail : E-Commerce

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