Case Analysis 1

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Drexel University *

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101

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Management

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Feb 20, 2024

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Case Analysis 1 The Teleological perspective states that an action is ethical if the outcome is greatest rather than considering the ethical quality of the mean employed. According to this perspective, the board’s decision it dismiss Easterbrook was not ethical because regardless of the affair being against the policy, he had great outcomes. This can be seen where McDonalds had a growth of “5.5% [and] revenue rose 9% to $5.14 billion, and net income rose 13% to $1.38 billion” (Katie Kuehner-Herbert). McDonalds also was able to increase its “capital improvement budget this year to $2.4 billion, up from $2 billion in 2017” (Katie Kuehner-Herbert , Chief Executive ). The Theory of Justice perspective states that an action is ethical if the decision was guided by equality, fairness, and impartiality. According to this perspective, the board’s decision it dismiss Easterbrook was ethical because the decision was based on the policy McDonalds has that he broke. The policy states that “ Employees with a direct or indirect reporting relationship to each other are prohibited from dating or having a sexual relationship. If you are in a relationship or plan to be in a relationship that could violate McDonald’s policy, you must contact your HR business partner or your supervisor immediately” (McDonalds Conduct). He violated that policy and thus ethically got fired. The Theory of Values perspective states that an action is ethical if it adheres to “locally” defined shared values of an organization or society. According to this perspective, the board’s decision to dismiss Easterbrook was ethical because going based on the companies’ values, Easterbrook’s’ actions go against it. Easterbrook himself acknowledged it saying, “ Given the values of the company, I agree with the board that it is time for me to move on” (Martin Pengelly, The Guardian). Sources: https://chiefexecutive.net/steve-easterbrook-helping-to-make-a-better-mcdonalds/ https://sbc.mcd.com/our- conduct#:~:text=Employees%20with%20a%20direct%20or,partner%20or%20your%20superviso r%20immediately . https://www.theguardian.com/business/2019/nov/03/mcdonalds-chief-executive-steve- easterbrook-relationship-employee

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