Discuss the fundamental principles of professional ethics which Ms. Christen had failed to observe and explain how an awareness of her duty to the public interest may have prevented her errors.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
icon
Related questions
Question

A technological failure occurred at ELEANOR Company last year. A new computer system which was designed to control ELEANOR’s complicated operational facility broke down shortly after it was installed. This meant that the company was unable to carry out production processes normally for several days.

 

The cause of the failure was later found to have been a system specification error made by Ms. Christen, the operations director and a professional engineer. She had seriously miscalculated the capacity needed for the new system and had ordered a computer system which was unfit for purpose. Not only had this resulted in the loss of several days of production and a loss of loyalty and goodwill from customers and others, it also cost a large amount to repair and upgrade the system to be able to cope with the actual demands placed upon it.

 

Ms. Christen acknowledged that she had over-ridden normal procurement procedures in purchasing the system. But she was thought by her colleagues to be such a competent engineer, it was not felt necessary for anybody else in the company to discuss the purchase with the suppliers. Her fellow directors believed that Ms. Christen would exercise the judgement needed to purchase and implement the new system. Because the system was needed urgently, there was no time to run it in ‘pilot mode’ or to test it on site before it was fully installed. When she was asked about the failure, Ms. Christen said that she decided to buy the system in question because an old friend had recommended it and that she saw no need to take further advice beyond that.

 

The non-executive directors met after the incident and collectively decided that Ms. Christen who had nine months remaining on her renewable three year contract, had lost the confidence of the board and should leave the company at the earliest opportunity. It was decided to move her to a non-critical role until such time as it was possible to remove her as cheaply as possible.





REQUIRED:



Discuss the fundamental principles of professional ethics which Ms. Christen had failed to observe and explain how an awareness of her duty to the public interest may have prevented her errors.

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Understanding Business
Understanding Business
Management
ISBN:
9781259929434
Author:
William Nickels
Publisher:
McGraw-Hill Education
Management (14th Edition)
Management (14th Edition)
Management
ISBN:
9780134527604
Author:
Stephen P. Robbins, Mary A. Coulter
Publisher:
PEARSON
Spreadsheet Modeling & Decision Analysis: A Pract…
Spreadsheet Modeling & Decision Analysis: A Pract…
Management
ISBN:
9781305947412
Author:
Cliff Ragsdale
Publisher:
Cengage Learning
Management Information Systems: Managing The Digi…
Management Information Systems: Managing The Digi…
Management
ISBN:
9780135191798
Author:
Kenneth C. Laudon, Jane P. Laudon
Publisher:
PEARSON
Business Essentials (12th Edition) (What's New in…
Business Essentials (12th Edition) (What's New in…
Management
ISBN:
9780134728391
Author:
Ronald J. Ebert, Ricky W. Griffin
Publisher:
PEARSON
Fundamentals of Management (10th Edition)
Fundamentals of Management (10th Edition)
Management
ISBN:
9780134237473
Author:
Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo
Publisher:
PEARSON