An ethical challenge arises when project managers work for a firm that develops code products for various United States government agencies. A situation occurs when the team chooses to reapply the CODE already approved by the government department for a project similar to a request by a corporation, FlyHigh. Approval raised how well the approving party understands the policies applied and concerns the benefitting party for the reused code. The project manager has a dilemma: either go further with the government or risk the initial approval being canceled, which could lead to the company’s financial loss. From the above scenario, the facts, ethical issues, available alternatives, ethics of the other options, and practical constraints arise.
Facts
- The company is a subcontractor that develops the code for the U.S. government agencies.
- The code FlyHigh wants is similar to the one we previously designed for a government project.
- The code reuse was allowed after approval from the legal agency that the government contracted.
- There is a question about what motivates the reuse of code.
- The first approval may be rejected by explaining the situation to the government, and the contract bid could be raised for FlyHigh and reach almost two million dollars.
Ethical Issue
Transparency and integrity are critical ethical concepts applicable in any business transaction. In the contracts, all parties should know the terms and conditions and the conflicts of interest(Ogbuke et al., 2020). In this example, there is no clarity about how the code will be reused, which draws a question of trustworthiness. In this case, the company could stand a significant loss of trust from the government and its market.
Potential harm to stakeholders. If the situation is clarified, FlyHigh will be protected. The government is at risk if the procedural hitch needs to be adequately understood, and the code reuse implications must be explained. The absence of transparency could inhibit the government’s ability to evaluate the project construction process and its conformity to the regulations. If, eventually, the contractor’s code is proven to be reused for another project, FlyHigh might be impacted negatively. Ultimately, the customers could feel betrayed and start doubting the integrity and authenticity of a product they paid for, thus threatening the company’s reputation.
Considerations of justice. Justice demands that agreements signed contractually be respected and carried out without partialities and that parties clearly understand their rights and responsibilities(Gerlick & Liozu, 2020). In this respect, due process means the government and Fly High should be informed about the code reuse and its impact on their separate operations. It would be unethical not to provide this information since it may lead to a situation where either of the parties may suffer unfair treatment.
Implications for contractual obligations. To uphold the contractual obligations, all contracting parties must comprehend every term and significance of the contract(Crosno et al., 2021). Leaving the matter unresolved may give rise to discrepancies that would challenge the contract’s validity. Such proceedings carry the risk of legal actions, deterioration of business relations, and the loss of revenue for all involved.
Available Alternatives
Proceed without clarification. This option allows the development to proceed without changing anything about the petition process. It might give rise to some serious legal and moral consequences if the validation was obtained despite a false case.
Clarify the situation with the government. Such a strategy involves the application of direct communication with the government so that they may be fully updated on all the essential contracting issues. Nevertheless, as a consequence, the approval of the initial Certificate will also be revoked, resulting in additional costs for the company.
Seek legal counsel. The project manager will engage legal experts to know the right path to follow and the legal implications of each option while painstakingly assessing their ramifications from a legal context.
Ethics of the Alternatives
Deontological ethics. Shifting to the next step before we have reached a mutually explicit understanding is, on the other hand, a violation of the deontological principle of honesty and transparency. Deontology claims that there is a distinction between right and wrong acts and that those that do not result in a negative outcome are morally correct(Singh & Mishra, 2018). In this scenario, the concealment of pertinent data from the authorities is against the principle that it is dishonest and unscrupulous and involves ignoring the potential consequences. Clarity fulfills its function as a moral duty of fulfilling a contract ethically and aligns with this. A deontological approach will emphasize duty and responsibility perception even if it ends with worsened company financial outcomes, like increased costs.
Utilitarianism. From the practical point of view, there is one goal: to create the highest possible prosperity. Giving up this option of getting clarified is a good thing in the short run, as it saves costs and time (Singh & Mishra, 2018). As a result, it could damage both the government and the company if the governmental authorities unveil the deception, and they feel deceived by FlyHigh. It might be expensive for the company to put the situation exactly, but, on the other hand, it may help the stakeholders in the future. By agreeing that each party is well aware of the contract’s terms and implications, the practical approach focuses on the well-being of all who will be harmed or benefited.
Virtue ethics. Virtue ethics is based on the individual’s character and moral values. When dealing with challenging situations, living up to the highest standard and remaining honest display virtuous conduct (Singh & Mishra, 2018). Skipping with confirmation can strengthen the company’s reputation and integrity, which could help the company’s trust with government organizations and private partners like FlyHigh. Caution and prudence are intrinsic to legal counsel. It entails a deliberate and careful assessment of potential consequences before making decisions. The legal consultation of this project manager reveals his prudent judgment and dedication to decisions guided by expertise, knowledge, and foresight.
Practical Constraints
The major drawback of choosing this course of action is the unwillingness to take the risk of additional costs for the company and the possible loss of reputation. Also, there might be fears of future contract signing with government entities and private organizations if this process needs to be dealt with appropriately. Communication with the team about the chosen course of action is vital to ensure they can all keep the same path and understand all the ethical implications.
In conclusion, the project manager must encompass ethical concerns and transparency in contractual negotiations. Although the practical problems and the possible liabilities are entailed, clarifying with the government is the most moral option. Such choices are consistent with honesty, fairness, and meeting contractual obligations. Obtaining a legal opinion helps handle the predicament successfully and prevent future disputes.
References
Crosno, J., Dahlstrom, R., Liu, Y., & Tong, P. Y. (2021). Effectiveness of contracts in marketing exchange relationships: A meta-analytic review. Industrial Marketing Management, pp. 92, 122–139. https://doi.org/10.1016/j.indmarman.2020.11.007
Gerlick, J. A., & Liozu, S. M. (2020). Ethical and legal considerations of artificial intelligence and algorithmic decision-making in personalized pricing. Journal of Revenue and Pricing Management, 19(2), 85–98. https://doi.org/10.1057/s41272-019-00225-2
Ogbuke, N. J., Yusuf, Y. Y., Dharma, K., & Mercangoz, B. A. (2020). Big data supply chain analytics: ethical, privacy and security challenges posed to business, industries, and society. Production Planning & Control, 33(2-3), 1–15. https://clok.uclan.ac.uk/34756/1/34756%20Big%20Data%20Analytics%20-%20Manuscripts%20Final%20Version%20%281a%29.pdf
Singh, A. K., & Mishra, N. K. (2018). Ethical Theory & Business: A study based on Utilitarianism and Kantianism. International Journal of Humanities and Social Development Research, 2(1), 107–124. https://doi.org/10.30546/2523-4331.2018.2.1.107
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