The Proton X90, a popular model from the Malaysian automobile manufacturer Proton, faced a significant issue when several units were reported to have caught fire. This incident raised serious concerns about the safety of the vehicle and the ethical responsibilities of the company. The company was criticized for its handling of the situation, particularly its initial response, which was perceived as dismissive of the severity of the issue.

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
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Assignment Question: Stakeholder Theory and Business Ethics Framework

Background:
Stakeholder theory posits that organizations should consider the interests of all stakeholders—groups or individuals that can affect or are affected by an organization's objectives—when making decisions. Business ethics, on the other hand, revolves around moral principles and values that guide behavior in the world of business. Together, the stakeholder theory and business ethics provide a robust framework for organizations to make ethical decisions that account for a wide range of interests.

Objective:
Your task is to critically analyze a real-world business scenario using both the stakeholder theory and a business ethics framework. The chosen scenario is the incident of Proton X90 fire risk.

Business Scenario: 
The Proton X90, a popular model from the Malaysian automobile manufacturer Proton, faced a significant issue when several units were reported to have caught fire. This incident raised serious concerns about the safety of the vehicle and the ethical responsibilities of the company. The company was criticized for its handling of the situation, particularly its initial response, which was perceived as dismissive of the severity of the issue.


Instructions:

1. Identify Stakeholders: List the key stakeholders involved in this scenario. Describe their interests, concerns, and potential influence on the company's decisions.

2. Apply Ethical Rules:

a. Utilitarian Rule: Assess the benefits and costs associated to the conduct. Does the company been ethical in their action?

b. Moral Rights: Evaluate the actions of the company. Are all the rights of stakeholders been fulfilled? Were they intrinsically right or wrong, regardless of the outcomes?

c. Justice Rules: Analyze the scenario in terms of its outcomes. Were the outcomes beneficial or harmful to stakeholders? Were they distributed fairly or unfairly?

d. Practical Rule: Review the action of the company on practical rule. Do they openly discuss the action to public?

3. Stakeholder Theory Analysis: How did the company prioritize or neglect the interests of its stakeholders? Did the company's actions align with the core principles of stakeholder theory?

4. Recommendations: Based on your analyses, provide recommendations for the company to ensure ethical decision-making in the future. How can they better integrate the interests of all stakeholders? What ethical principles should guide their future actions?

5. Conclusion: Sum up your findings and reflections. Discuss the importance of integrating stakeholder theory and business ethics in today's corporate decision-making process.

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