Ethical Decision-Making Dilemma: Joe's Contract Renewal Case
This paper examines the ethical and leadership dilemma facing Joe, a sales representative at UWEAR, as the company navigates declining sales and a corporate merger with PALEDENIM. Joe must decide whether to renew a low-priced contract with Peninsula Hotels while competitor Threads4U offers to undercut the existing price by 10%. The paper applies utilitarian ethical theory as the primary framework for guiding Joe's decision, arguing that maximizing collective benefit is the most appropriate course of action. Opposing perspectives grounded in virtue ethics are presented and rebutted, and a compromise solution involving UWEAR's management team is proposed as the most feasible and organizationally responsible path forward.
- Introduction: Joe's Ethical Dilemma at UWEAR: Context of UWEAR's sales decline and Joe's dilemma
- Joe's Probable Course of Action: Joe leverages friendship to pursue contract renewal
- Relevant Ethical Theory: Utilitarianism: Utilitarianism justifies maximizing benefit for all parties
- Opposing Perspectives: Virtue Ethics: Virtue ethics supports alternative decisions for Joe
- Rebuttal of Opposing Perspectives: Opposing views ignore competitive strength and stakeholder interests
- Compromise and Creative Solution: Management involvement proposed as feasible resolution
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What makes this paper effective
- The paper applies a named ethical framework (utilitarianism) to a concrete business scenario, demonstrating applied ethics reasoning rather than abstract theory.
- It acknowledges and engages with opposing viewpoints before rebutting them, showing intellectual balance and strengthening the central argument.
- The compromise solution is practically grounded in organizational reality, connecting ethical reasoning to managerial decision-making.
Key academic technique demonstrated
The paper uses the thesis–antithesis–synthesis structure effectively: it proposes a course of action, introduces counterarguments rooted in an alternative ethical theory (virtue ethics), rebuts those counterarguments with evidence from the scenario, and resolves the tension with a pragmatic compromise. This dialectical approach is a hallmark of applied ethics writing at the undergraduate level.
Structure breakdown
The paper opens with a contextual introduction establishing the scenario, then moves through five clearly delineated sections: proposed action, ethical justification, opposing views, rebuttal, and compromise solution with a brief conclusion. Each section builds directly on the previous one, maintaining coherent argumentative flow from problem identification to resolution.
Introduction: Joe's Ethical Dilemma at UWEAR
UWEAR is undergoing a difficult period characterized by declining sales and relatively low profit margins. This situation has generated considerable concern and pressure among the firm's employees, including Joe, who fears cutbacks and layoffs due to the company's merger with PALEDENIM. However, Joe has established good relations with the CEO of Peninsula Hotels and signed a contract with them in the past financial year. Given the strong rapport already in place, Peninsula is seeking to renew the contract for the upcoming financial year. The renewal, however, has generated several concerns: the initial contract price was already low, and Threads4U has offered to beat that price by 10%. As a result, Joe is facing a leadership and ethical decision-making dilemma that is further complicated by the pressure to perform.
Joe's Probable Course of Action
In light of the leadership and ethical dilemma facing Joe, he needs to identify a suitable course of action that would benefit all parties and help enhance UWEAR's profitability during this difficult financial period. From the scenario, it appears that the relationship between Joe and Bill extends beyond a purely transactional one — it resembles a genuine friendship. Good relations with a business client provide a strong foundation for mutually beneficial transactions (Dahl, 2011). In this regard, Joe should capitalize on the friendship that exists between him and Bill to pursue the contract renewal with the Peninsula hotel chain.
However, contract renewal discussions should incorporate deliberations regarding the brand name and quality of both UWEAR and PALEDENIM. Additionally, Joe should develop a plan for competing with Threads4U and engage his company's management in offering promotions or a more competitive price reduction to counter Threads4U's offer.
Relevant Ethical Theory: Utilitarianism
The proposed course of action for Joe is supported by utilitarian ethical theory, which focuses on promoting the greatest good for the greatest number. Based on this theory, an act is not inherently right or wrong; rather, its rightness or wrongness is determined by its overall consequences (Moreland, n.d.). Through this ethical lens, Joe should focus on maximizing benefit for all parties involved in this business transaction. This requires him to consider the financial situation at UWEAR, the business goals of Peninsula Hotels, and the competitive pressure he faces.
While reducing the contract price may not be ideal for UWEAR in isolation, renewing the contract is ultimately beneficial — failing to do so would mean losing the deal to Threads4U entirely. The use of utilitarian ethical theory in this situation is further justified by the complexity of the issues involved, which demand an approach that considers the interests of all parties rather than favoring one at the expense of others. For Joe personally, this theory also heightens awareness of his own vulnerability to layoff and UWEAR's broader decline in sales and profitability.
References
Athanassoulis, N. (n.d.). Virtue ethics. Retrieved from The University of Tennessee Martin website: http://www.iep.utm.edu/virtue/
Dahl, D. (2011, January). How to build better business relationships. Retrieved April 17, 2017, from https://www.inc.com/guides/201101/how-to-build-better-business-relationships.html
Moreland, J. P. (n.d.). Ethics theories: Utilitarianism vs. deontological ethics. Retrieved April 17, 2017, from http://www.equip.org/article/ethics-theories-utilitarianism-vs.-deontological-ethics/
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