MGMT618_Week7_SmithT

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Elon Musk: To Close or Not to Close Tysha Smith American Public University MGMT618: Ethics in Leadership Professor Dave Zipin 21 January 2024
Table of Contents Introduction Corporate Ethics Defined Questions Elon Musk’s Decision Employee Impact Government Regulation Violation Corporate Social Responsibility References
Introduction Even at small age we are taught to do what’s right Morality: The ability to make judgement calls and reflect on decisions or actions Having MORALITY is what separates humans from the rest of the animal kingdom This helps us to make the right decisions based on what is deemed good or bad This leads us to “Ethical Behavior”
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Corporate Ethics Defined Corporate Ethics falls in line with ethical behavior Conducting business in a way that is morally right and lacks corruption Key components: Honesty Respect Fairness Transparency Dignity Etc. (Burcea & Croitoru, 2014)
Questions Did Tesla, Inc. adhere to a strong code of business and corporate ethics during the COVID-19 pandemic? Tesla, Inc did not adhere to a strong code of business and corporate ethics during the Covid-19 pandemic. Their CEO placed their employees & society in danger in order to secure a profit. Does Elon Musk exude and promote long- term, ethical business leadership practices as Tesla’s CEO? Elon Musk prioritizes business and profits over ethics and moral decision maker. This is not the making of a long-term ethical business. Tesla has received various employee complaints outside of this incident.
Elon Musk’s Decisons By May 2020 Covid had rampaged the United States Claiming almost 100,000 lives and sending a great deal of Americans home Elon Musk announced via Twitter that he would be defiantly reopening the Fremont Factory Referred to the pandemic as “dumb” and pushed out “fake news” (Wong, 2020)
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Employee Impact 100’s of Covid cases after reopening Claimed that they would allow workers that were concerned about Covid risks to stay home Employees that were concerned and refused to work were terminated Low wages Lack of worker rights (Siddiqui, 2021) Tesla workers complained about low wages, high workloads, mandatory overtime, and workplace injuries” (Minchin, 2021, pg. 435).
Government Regulation Violation Alameda County regulations 7 May governor Gavin Newsom allowed for some manufactures to reopen This does not overrule local regulations Governor Newsom was unaware of the reopening and hoped for lower-level solutions (Wong, 2020)
Corporate Social Responsibility “encompasses policies, processes, and practices (including discloures) that firms put in place to improve the social state and well-being of their stakeholders and society (including the environment) whether undertaken voluntarily or mandates by rules , norms and/or customs” (Zaman et el, 20222). Musk did not look out for the best of society, his employees, or work in accordance with local government policies
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Conclusion Elon Musk did not follow government mandated policies and fought the government on their policies although they were put in place to protect not only the employees, but also their families and communities He prioritized the business rather than the well being of others This was not an ethical decision, nor does it promote ethical business
References Burcea, N., & Croitoru, I. (2014). Business Ethics.  Journal of Public Administration, Finance & Law 6 , 139–143. Minchin, T. J. (2021). “The factory of the future” Historical continuity and labor rights at Tesla. Labor History, 62(4), 434–453. https://doi-org.ezproxy2.apus.edu/10.1080/0023656X.2021.1940115 Siddiqui, F. (2021, March 12). Hundreds of Covid cases reported at Tesla plant following Musk’s ... The Washington Post. https://www.washingtonpost.com/technology/2021/03/12/hundreds-covid-cases-reported-tesla-plant-followin g-musks-defiant-reopening-county-data-shows/ Wong, J. C. (2020, May 11).  Elon Musk reopens California Tesla Factory in defiance of Lockdown Order . The Guardian. https://www.theguardian.com/technology/2020/may/11/tesla-factory-reopening-elon-musk-california-lockdo wn Zaman, R., Jain, T., Samara, G., Dima, J. (2022). Corporate Governance Meets Corporate Social Responsibility: Mapping the Interface . https://doi.org/10.1177/0007650320973415