EVERYONE DOES IT

UNDER SUPERVISION OF

DR. Manal El Kordy

EMBA COHORT 9

GROUP MEMBERS:

ASHRAF KHALIL
MAREY
AHMED BAHER
HANI RAMADAN
SHOUKRY RAMADAN
WAEL BARAKAT

Case Summary
Business Firm:
ISI
Jim

( International Satellite Images)

Willis

Fred

( ISI VP of Marketing and Sales )

Ballard ( ISI President )

Project

require decision: Building satellite to image the world with

resolution one square meter

Competitors

: Lockart company, Global Sciences company, are the

main competitors which have also the license from the US

government to build and launch a satellite able to identify objects as
small as one square meter

CASE BRIEF

CASE BRIEF (CONT..)

Jim Protested that the
use of an incorrect date
was clearly unethical

Fred answered Jim that

satellite has ever been
launched on time
including competitors.

Customers understand
the tentative nature of
launch schedules

It is so common that
customers factor into
their plans the likelihood
that spacecraft will not
be launched on time

If we provided realistic dates,

our launch dates would be
later than those published by
competitors that we would
never be able to sell any
advanced contracts

Freds words were not

very comforting to Jim

All of the other competitors

companies announced a launch date
within six months of the ISI
published launch date

CASE BRIEF (CONT)

Case Questions
1) What are sources of the
factors, which created the
ethical dilemma?
There are several Internal forces include:
Jim Willis VP Manager, Fred Ballar President
Prior approval is needed to disclose company information
The financial stability of the company and its existence.

2) Is it ever appropriate to withhold

negative information from the client?
Ethically, it is not accepted publish misleading
information to our clients, but in some situation can
withhold negative information (keep silent) unless
the information affect directly our client, but in this
case it is a must to disclose the full information
about the expected delivery date as it will affect
customer negatively.

3) What should ISI do?

ISI should delayed negotiations and
emphasis on alternative short term solution
to complete satellite camera project and if
there is no way else, they have to disclosed
the negative information to HTC.

4) What is meant by the term,

industry practice? Is this an example
of moral relativism?
Industry practice:
We believe that a certain action is commonly
accepted practice in an industry and competitors
behave in the same unethical practice.
Yes, we think it is a social group relativism and
argues that a decision is considered legitimate if it
is common practice, regardless of other
considerations (everyones doing it).

5) In what level of moral development is Jim

Willis? His boss, Fred Ballard?
Jim: Conventional Level
As he is concerned his actions are justified by an
external code of conduct.
Fred: Principled Level
As he justified his action by an individual at this level
looks beyond norms or laws to find universal values
or principles and adherence to an internal
moral code.

6) Would a code of ethics have

prevented/resolved
this
ethical
dilemma? What should be in a code of
ethics? What if ISI had a Code of Ethics
which
stated
that
proprietary
information could not be disclosed to
anyone outside the company and
allowed no exceptions?
YES, prevent only but not resolve,
Disclosure

of

full

information

in

respect

to

company reputation and its position in the market.

7) What would the utilitarian approach

to ethical behavior say about full
disclosure vs. withholding? Individual
rights approach? Justice approach?
Kants categorical imperatives?
According to Utilitarian approach: The company should
have full disclosure as it will have negative
consequences on the clients.
According to Individual Rights: Fred may not disclose
the full information in case he considered that the
future contracts is the right to his company
According to Justice Approach: The full disclosure is