MGT 4670 AU Perfect Plastics Incorporated an Old Small Company Case Study

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Business Finance

MGT 4670

Amberton University




1.     As a company, would you describe PPI as having an identifiable philosophy of moral values?  How do its policies contribute to this philosophy?

2.     Which ethical perspective best describes PPI’s approach to safety issues?  Would you say PPI takes a utilitarian, duty, or virtue-based approach?

3.     Regarding safety issues, how does management see its responsibilities toward its employees?  How do the attorneys see their responsibilities toward PI?

4.     Why does it appear that the ethics of PPI and its attorneys are in conflict?

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Explanation & Answer

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Case 13.2: How Safe Is Safe?


Case 13.2: How Safe Is Safe?
Perfect Plastics Incorporated is a 10-year-old small company that produces injectionmolded plastics. The company has 50 employees and has a great financial position, as shown by
its healthy balance sheet and annual sales that amount to about $4 million. The company’s
management prioritizes their employees’ welfare and safety. In doing so, PPI has implemented a
unique approach that involves bringing in external auditors to inspect the plant for any safety
hazards. So far, the approach has been effective since the company has a good safety record and
its insurance firm has not had to pay any claims to employees for years. Attorneys however do not
consider this approach great from a legal perspective. This paper will discuss the ethical, moral,
and legal implications of businesses by first determining whether PPI has an identifiable
philosophy of moral value. The paper will then discuss the ethical perspective that best describes
the company’s approach to safety issues, identifies the management's responsibility to employees,
and the attorneys’ responsibility to the company. The paper will culminate by analyzing why the
ethics of the management and that of the attorneys seem to conflict.
As a company, would you describe PPI as having an identifiable philosophy of moral values?
How do its policies contribute to this philosophy?
Perfect Plastics Incorporated (PPI) has an identifiable philosophy of moral values. Moral
values are relative values that protect life and recognize and respect the dual life value of other
people. The great moral values such as freedom, truth, charity usually have one thing in common.
When they work correctly, they protect and enhance the lives of all individuals. Moral values
should constantly be assessed to ensure that they perform their purpose. From this perspective, PPI
has an identifiable philosophy of moral values. The firm prioritizes the well-being of its staff by
upholding their safety and security standards. One aspect that proves this is that the PPI has a good


safety record. Indeed, the insurance firm that has the company’s liability policy has not paid any
claims to the staff for a lot of years (Northouse, 2021). Furthermore, since the company was
established, there have been no cases of major injuries. This has been possible due to various
policies set forth by PPI.
PPI wants the best for its employees, consumers, and for its overall success. One of the
practices which define the company's philosophy of moral values is the annual bringing in of
external consultants to audit the company’s plant to identify whether there are any unsafe
conditions. Annually, the company brings in auditors from the Occupational Safety and Health
Administration (OSHA) to inspect the plant. These inspections usually reveal various safety issues,
which the company addresses by purchasing new equipment, repairing defective parts, and even
going their way to alter the workflow designs. This practice has made it possible for the company
to ensure that its safety and security practices improve annually.
Not all companies rely on external audits to determine whether their premises pose any
safety or security concerns. As seen in the case study, PPI’s attorneys are skeptical...

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