Case Study

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Muranga University College *

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101

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Management

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Nov 24, 2024

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1 Case Study Student Name Institutional Affiliation Course Code: Course Name Instructor’s name and Title Assignment Due Date

2 Week 4 Ethical Considerations and Decision-Making Regarding Chemical Disposal in Water Supply Chromium is regarded to as a toxic metal that is occasionally found in surface waters as well as groundwater and mainly results from both the natural causes as well as the various anthropogenic sources. Majority of the organizations such as the U.S. Environmental Protection Agency and the World Health Organization recognize Chromium VI as being a Carcinogen and associates it with a higher risk of developing lung cancer, nasopharyngeal carcinoma as well as various types of cancer. Due to this element's harmfulness, care must be taken to prevent improper handling or disposal in areas near habitation where there is a chance of contamination. The paper examines the various effects and various justifications that organizations may have for encouraging the dumping of various harmful chemicals to water supplies. According to Sharma et al (2022), Chromium is released into the air through a process called Chromite oxidation which is normally caused by the microbial interaction that occurs between the ultramafic and mafic rocks as well as the geogenic events. Additionally, a number of chromium industrial applications are used in the generation of various chemicals and generation of energy, the production of metals. Chromium VI is regarded to as the most toxic type of Chromium that exists amongst different types of Chromium (Sharma et al., 2022). It is also important to recognize that among all the various possible adverse health effects that are connected to the consumption of the element, the implications to the health vary depending in the quantity of chromium, the duration of contact as well as various other factors such as an individual`s personal medical history.

3 I wouldn`t allow any organization to dump waste and chemicals such as Chromium VI into any form of water supply. The main reason for this is the fact that the drawbacks are serious and pervasive. When companies decide to dump various hazardous waste and chemicals into water supplies that serve as a source of domestic for various people, it may seem as merely a negative occurrence (Yusliza et al., 2019). In a logical sense, the dumping of the waste could result in greater levels of pollution in the water sources that would in turn endanger the marine ecosystems. From an organizational perspective, the disaster of releasing toxins into the ocean possesses some benefits, like lower operating expenses (Thorisdottir & Johannsdottir, 2020). The need for economical alternatives in every aspect of corporate operations is a natural factor for firms to consider. Additionally, being an organizational leader, one has to always think about the possible long-term consequences that litigation and prospective settlements could have on the company`s operations. A clear example of such a case happened when Pacific Gas and Electric company dumped waste containing Chromium VI into the water supply in Hinkley, California (Yusliza et al., 2019). The contamination of the water supply not only posed serious health risks to the residents of Hinckley but also led to a legal battle. The legal battle tended with PG&E paying a substantial $333 million in compensation to affected individuals. This significant financial penalty serves as a stark reminder that unethical actions can lead to severe financial repercussions. This could potentially jeopardize the stability and sustainability of an organization. Additionally, the PG&E case had a profound and enduring impact on the company's reputation (Thorisdottir & Johannsdottir, 2020). The incident tarnished PG&E's image and generated widespread public scrutiny and distrust. The company's failure to

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4 act responsibly and transparently in addressing the contamination crisis eroded the trust of its customers and stakeholders. Originally, the company might have believed that the releasing of waste onto the water supply might have been the most economical course of action. Both monetarily as well as publicly, it was indeed very expensive. This episode damaged the organization's image in the general population and instilled mistrust in people. The Ethics of Top Management Teams: Understanding Factors Influencing Unethical Decision- Making The top management staff in any organization are made of individuals who could be swayed by the opinions of the majority of the stakeholders due to the need to fulfill the need to the majority of the stakeholders. On the other hand, groupthink is a psychological phenomenon that occurs when members of a group try to come to an agreement. Considering this justification, group members are more likely to put behind their individual opinions in order to come to a consensus (Thorisdottir & Johannsdottir, 2020). They will then accept the group's viewpoint as the consequence. Groupthink is occasionally difficult since some of the individuals often decide to remain silent, not offer suggestions, or challenge the opinions of the majority. Due to this happening amongst the leaders of an organizations, the top management staff could concentrate on making unethical suggestions for approaches which will serve to help the firm (Sharma et al., 2022). Individuals of the most senior executives frequently act with an eye toward their own political or personal advantage. They therefore attempt to make changes for the company, the company's shareholders, and other influential people who might have helped the company. The top

5 management teams can therefore believe that their choices are driven by the advantages they bring to both themselves and the company. In a study that was meant to identify the emergent and compositional factors on unethical behavior by the management teams, it was discovered that as formalized attitude inside the group was found to be adversely connected to group choices that were unethical. On the other hand, the group`s utilitarian mindset was closely linked to both the moral as well as unethical choices and actions (LeBaron et al., 2021). The results also demonstrated how the level of psychological protection within the team impacted the relationship between utilitarianism and unethical consequences. Groups that experienced substantial degrees of psychological safety exhibited unethical behaviors far more frequently (Kim & Austin, 2019). According to researchers, the psychological safety can be defined as the common belief amongst the team members that the group is definitely safe for relations risk-taking. In essence, the group members believed they would be shielded from criticism or examination. According to research, prominent people on teams, such as senior management personnel, are have a greater probability to base their choices on prospective results than on accepted standards of acceptable and unacceptable behaviors. They are prepared to take unethical actions based on what might occur in the not-too-distant future, rather than on the morality of their actions (Kim & Austin, 2019). Teams that are made up of utilitarian members are far more inclined to select for the best choice of action when faced with a scenario where doing so will be advantageous to all members of the team and be judged harmless to other individuals in community (LeBaron et al., 2021). Regardless of the degree to which it deviates from social norms, they should choose the course of action that will indeed benefit them and the comping the greatest.

6 Impacts of Ethical Decisions As China`s economy continues to expand, the country has overwhelming environmental protection concerns. Indeed, since the country began its quest for economic expansion, its environment as a whole has been severely deprived. It has been clear that the individuals of managerial groups might avoid paying considerable or any attention on ethical issues related to the environment when they are focused on maximizing production and profit (Karwowski & Raulinajtys, 2021). One of the cases from China`s predicaments was when the Rongping Chemical Company, a business that is located in Fujian decided to discharge untreated chlorine onto water supplies for a number of years with their main aim being to reduce the costs of operations and to also boost cost-effectiveness. Due to the incidence, the Chromium VI levels in the water supplies increased as a result of the untreated chlorine being dumped into the streams. It was identified that the Rongping company had been discharging chemicals with ta high level of Chromium VI for a period of 20 years. The level of Chromium VI were more than 20 times what was recommended by national standard. According to researchers, the top management team personal views on collectivism can have a huge influence on the environmental ethics (Karwowski & Raulinajtys, 2021). Judgment and ethical judgment are frequently clouded by team members' concentration on what they believe is most advantageous to their company from a profitability aspect. Just as in Rongping`s case, the consequences of this are negative. In both the Rongping and the Luliang case, it is important to put the cultural setting into account. It has been identified that particular cultures are always more collectivists that other cultures. This difference may therefore have a huge impact on how the various member of the culture behave in organizational setting. They believe that if they are devoted to these

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7 organizations, they would be taken care of. In China, which has a very collectivist society, individuals act in ways that serve the needs of the group rather than their own. Compared to the United States, China could be considered to be more collectivist country. This particular mentality clarifies the reason why numerous members of the senior management team act in a manner that promotes the achievement of the company (Hur et al., 2020). In China, the society has grown more focused on the individual freedoms and rights, with collectivism seeming to only apply to the company to which an individual works for. The quest of pleasure, that is connected to a person's source of money, has become stressed significantly more in today's society. To prevent accusations of being egotistical, Chinese top executives have emphasized collectivism in the workplace (Huber & Schormair, 2019). The idea of self-sacrifice has actually lost its popularity as a dominant governmental philosophy. Teams within organizations are increasingly made up of people who are more concerned with achieving the optimal for their company than for community or other people. In today`s society, the managers at the top are more inclined to disregard ethical principles regarding the environment when they are dissatisfied with their staff's productivity. Many of the executives and members of the senior management team have to come up with answers to issues and maintain development which necessitates using short cuts to minimize operating costs as much as feasible (Hur et al., 2020). It may be claimed that these businesses have given their residents jobs and other advantages. They have, according to this sense, chosen a morally sound choice since they give families a chance to prosper economically. Their strategies are nevertheless dubious. The Pacific Gas & Electric case occurred in the Hinkley, California in the United States. The organization released chromium VI into the water systems and the incidence later led to a

8 $333 million legal compensation to the residents of the town, Additionally, the company faced public scrutiny for its neglect towards the needs of the society at large. Nevertheless, comparing this with Rongping`s case, a huge difference is observed since the 1,712 villagers affected by Rongping`s action never received any compensation for their struggles (Kim & Austin, 2019). A meagre sum of $105,000 was mandated to be paid by the group to make up for the harm caused upon the environment (Boubaker et al., 2020). And indeed, a lawsuit ultimately succeeded in closing Rongping's plant, but it failed to provide the locals with financial relief. Future top management teams' ethical judgments are impacted by these results. These businesses are going to face severe repercussions like closures of plants, financial penalties, and mandates for environmental restructuring. The cases discussed illustrate the significant effects that senior management teams and their companies might experience as a result of ethical concerns and decision-making involving chemical disposal in water supplies. Top management teams must understand that immoral acts have far-reaching effects in a world that is more connected and ecologically concerned. Future leaders must place a high priority on moral issues while also considering the welfare of their organizations, the larger community, and the environment. Top management teams can help create a more sustainable and morally sound future for their enterprises and society at large by adopting responsible decision-making and learning from the errors of past situations.

9 References Boubaker, S., Chebbi, K., & Grira, J. (2020). Top management inside debt and corporate social responsibility? evidence from the US. The Quarterly Review of Economics and Finance , 78 , 98–115. https://doi.org/10.1016/j.qref.2019.12.001 Huber, K., & Schormair, M. J. (2019). Progressive and conservative firms in Multistakeholder Initiatives: Tracing the construction of political CSR identities within the accord on fire and building safety in bangladesh . Business & Society , 60 (2), 454–495. https://doi.org/10.1177/0007650319825786 Hur, W., Moon, T., & Kim, H. (2020). When and how does customer engagement in CSR initiatives lead to greater CSR participation? the role of CSR credibility and customer– company identification. Corporate Social Responsibility and Environmental Management , 27 (4), 1878–1891. https://doi.org/10.1002/csr.1933 Karwowski, M., & Raulinajtys, M. (2021). The application of Corporate Social Responsibility (csr) actions for mitigation of environmental, social, corporate governance (esg) and reputational risk in integrated reports. Corporate Social Responsibility and Environmental Management , 28 (4), 1270–1284. https://doi.org/10.1002/csr.2137 Kim, S., & Austin, L. (2019). Effects of CSR initiatives on company perceptions among millennial and Gen z consumers. Corporate Communications: An International Journal , 25 (2), 299–317. https://doi.org/10.1108/ccij-07-2018-0077

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10 LeBaron, G., Edwards, R., Hunt, T., Sempéré, C., & Kyritsis, P. (2021). The ineffectiveness of CSR: Understanding Garment Company commitments to living wages in global supply chains. New Political Economy , 27 (1), 99–115. https://doi.org/10.1080/13563467.2021.1926954 Sharma, P., Singh, S. P., Parakh, S. K., & Tong, Y. W. (2022). Health hazards of hexavalent chromium (Cr (VI)) and its microbial reduction. Bioengineered , 13 (3), 4923–4938. https://doi.org/10.1080/21655979.2022.2037273 Thorisdottir, T. S., & Johannsdottir, L. (2020). Corporate Social Responsibility influencing sustainability within the fashion industry. A systematic review. Sustainability , 12 (21), 9167. https://doi.org/10.3390/su12219167 Yusliza, M.-Y., Norazmi, N. A., Jabbour, C. J., Fernando, Y., Fawehinmi, O., & Seles, B. M. (2019). Top management commitment, corporate social responsibility and Green Human Resource Management. Benchmarking: An International Journal , 26 (6), 2051–2078. https://doi.org/10.1108/bij-09-2018-0283

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