hics are important too, and in recent years the close connection between ethics and the law have began to surface with cases like the Enron, a company that was financially at the top of the corporate world but whose financial records and documents were in fact manipulated and fabricated to make it appear that it was making huge profits when it fact, it was swimming in debt. Many of its executives received prison sentences and the auditing firm that handled its account dissolved. The Brighton Young University School of Business developed twelve categories of business ethical dilemmas, namely: using or taking the property of others; deliberate lying; giving or allowing false impressions; engaging in conflict of interest; concealing information; taking unfair advantage; engaging in personal acts that affects the quality of work; committing personal abuse; allowing organizational abuse; violating rules; permitting unethical actions (Jennings 2008 10-14). The problem at hand shows that many of the recommendations made by the Strategic Planning Committee to solve the problems currently faced by the Company not only seem to contravene standard business ethics but may also be legally questionable.
The Strategic Planning Committee recommended setting up a Claims Processing Department in a locality considerably far from the present Company Premises, which is not being serviced by public transportation. This is purportedly to resolve the problem of the workforce issue. Evidently, the secluded location viz., inaccessible to public transport, is meant to keep unwanted applicants at bay, especially city applicants. The Committee probably wanted to exclude city applicants who are at a wage premium because of their minority status. The issue here is whether it is ethical to deliberately locate the Claims Processing Department to a site where the workforce is cheaper.
This recommendation is akin to the practice of many companies to outsource some of company functions overseas