Solve the question by Four Component Model of ethical decision-making or the IRAC-type analysis

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LAW 2221

2018

Problem 3 Writing Assignment

Assume that 4 classmates who graduated from the SCOB decided to start a small business that produces

small components for automobile valve assemblies for Hyundai Sonatas. The company was set up as an

Alabama corporation under the name of “SCOB Products.”

Because Hyundai has a large assembly plant outside of Montgomery, Alabama, all four of the classmates

decided to locate the company in Montgomery. The company has hired local managers who can run the

business. These managers are also graduates of Troy’s Sorrell College of Business. They are originally

from Israel.

The four classmates make up the company’s board of directors. Jane is the Chairwoman; Paul is the

Secretary; Julie is the Treasurer; Jacob is simply a voting member. Stock was issued and each of the four

took a 25% interest in the company. Jane is also the CEO; Paul is the CFO; Julie is the CCEO. Jacob is not

one of the officers. He was recognized by the other members as having incredible marketing and sales

talents and, therefore, he was given the position of Director of Marketing and Sales which is a

management position.

The Board recently met to discuss a proposal by Jane to donate 10% of the profits, after taxes, from the

company to a building project in what is referred to as Palestine.

1

The project is sponsored by Hamas

and it is designed to provide living space for orphans. Jane and the other two Board members are very

much in favor of this project because Jane was an orphan herself in Jordan at a very young age. She is,

therefore, intimately familiar with the plight of orphaned children in that part of the world.

Jacob is Jewish and he disagrees. Because of the conflict between Israel and Hamas, he is adamantly

opposed to anything that Hamas wants to do no matter how socially worthwhile the project might be.

He openly express his disagreement and strong opposition to the proposal.

The debate at the most recent Board and Shareholders’ meeting was quite heated. The other three

Board members, however, voted to make the contribution. At the same time, they reassessed Jacob’s

“cooperation.” They voted to remove him from his managerial position and to put him in the position of

head of the sales force. They intend to bring in another person who they know very well and to make

her Director of Marketing and Sales.

This will result in a reduction of Jacob’s pay and much lower prestige among the employees.

You are a consultant for businesses on corporate governance matters. Jacob comes to you for advice.

What are the corporate governance issues that you see in this fact pattern?

Analyze

them. This is not a

1

An area in the Middle East recognized as a state by some members of the U.N.

fact pattern that will require you to use the Rest Four Component Model of ethical decision-making or

the IRAC-type analysis. Those will come in later assignments.

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LAW 2221 2018 Problem 3 Writing Assignment Assume that 4 classmates who graduated from the SCOB decided to start a small business that produces small components for automobile valve assemblies for Hyundai Sonatas. The company was set up as an Alabama corporation under the name of “SCOB Products.” Because Hyundai has a large assembly plant outside of Montgomery, Alabama, all four of the classmates decided to locate the company in Montgomery. The company has hired local managers who can run the business. These managers are also graduates of Troy’s Sorrell College of Business. They are originally from Israel. The four classmates make up the company’s board of directors. Jane is the Chairwoman; Paul is the Secretary; Julie is the Treasurer; Jacob is simply a voting member. Stock was issued and each of the four took a 25% interest in the company. Jane is also the CEO; Paul is the CFO; Julie is the CCEO. Jacob is not one of the officers. He was recognized by the other members as having incredible marketing and sales talents and, therefore, he was given the position of Director of Marketing and Sales which is a management position. The Board recently met to discuss a proposal by Jane to donate 10% of the profits, after taxes, from the company to a building project in what is referred to as Palestine.1 The project is sponsored by Hamas and it is designed to provide living space for orphans. Jane and the other two Board members are very much in favor of this project because Jane was an orphan herself in Jordan at a very young age. She is, therefore, intimately familiar with the plight of orphaned children in that part of the world. Jacob is Jewish and he disagrees. Because of the conflict between Israel and Hamas, he is adamantly opposed to anything that Hamas wants to do no matter how socially worthwhile the project might be. He openly express his disagreement and strong opposition to the proposal. The debate at the most recent Board and Shareholders’ meeting was quite heated. The other three Board members, however, voted to make the contribution. At the same time, they reassessed Jacob’s “cooperation.” They voted to remove him from his managerial position and to put him in the position of head of the sales force. They intend to bring in another person who they know very well and to make her Director of Marketing and Sales. This will result in a reduction of Jacob’s pay and much lower prestige among the employees. You are a consultant for businesses on corporate governance matters. Jacob comes to you for advice. What are the corporate governance issues that you see in this fact pattern? Analyze them. This is not a 1 An area in the Middle East recognized as a state by some members of the U.N. fact pattern that will require you to use the Rest Four Component Model of ethical decision-making or the IRAC-type analysis. Those will come in later assignments. Copyright 2018 Orrin K. Ames III LAW 2221 2018 Problem 3 Writing Assignment Assume that 4 classmates who graduated from the SCOB decided to start a small business that produces small components for automobile valve assemblies for Hyundai Sonatas. The company was set up as an Alabama corporation under the name of “SCOB Products.” Because Hyundai has a large assembly plant outside of Montgomery, Alabama, all four of the classmates decided to locate the company in Montgomery. The company has hired local managers who can run the business. These managers are also graduates of Troy’s Sorrell College of Business. They are originally from Israel. The four classmates make up the company’s board of directors. Jane is the Chairwoman; Paul is the Secretary; Julie is the Treasurer; Jacob is simply a voting member. Stock was issued and each of the four took a 25% interest in the company. Jane is also the CEO; Paul is the CFO; Julie is the CCEO. Jacob is not one of the officers. He was recognized by the other members as having incredible marketing and sales talents and, therefore, he was given the position of Director of Marketing and Sales which is a management position. The Board recently met to discuss a proposal by Jane to donate 10% of the profits, after taxes, from the company to a building project in what is referred to as Palestine.1 The project is sponsored by Hamas and it is designed to provide living space for orphans. Jane and the other two Board members are very much in favor of this project because Jane was an orphan herself in Jordan at a very young age. She is, therefore, intimately familiar with the plight of orphaned children in that part of the world. Jacob is Jewish and he disagrees. Because of the conflict between Israel and Hamas, he is adamantly opposed to anything that Hamas wants to do no matter how socially worthwhile the project might be. He openly express his disagreement and strong opposition to the proposal. The debate at the most recent Board and Shareholders’ meeting was quite heated. The other three Board members, however, voted to make the contribution. At the same time, they reassessed Jacob’s “cooperation.” They voted to remove him from his managerial position and to put him in the position of head of the sales force. They intend to bring in another person who they know very well and to make her Director of Marketing and Sales. This will result in a reduction of Jacob’s pay and much lower prestige among the employees. You are a consultant for businesses on corporate governance matters. Jacob comes to you for advice. What are the corporate governance issues that you see in this fact pattern? Analyze them. This is not a 1 An area in the Middle East recognized as a state by some members of the U.N. fact pattern that will require you to use the Rest Four Component Model of ethical decision-making or the IRAC-type analysis. Those will come in later assignments. Copyright 2018 Orrin K. Ames III
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Running head: PROBLEM 3 WRITING ASSIGNMENT

Problem 3 Writing Assignment
Student’s Name
Institution Affiliation

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PROBLEM 3 WRITING ASSIGNMENT

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Introduction
Making decisions can be quite cumbersome especially if the case in question is a matter
whose ethical and moral justification cannot be overlooked. Cooperates such as SCOB products
will have a diverse management team whose views and perceptions vary based on one’s religion
and culture. In the quest to ensure that the board of directors make an informed decision that
does not bring any harm of any form of disintegration, they have to consider a couple of factors
to always take into consideration even before merging to form a partnership (Gaudine & Thorne,
2001). The view and perception of each in a corporate panel matters and no one should be locked
from raising concerns from issues they are no longer comfortable and content with. However,
objecting to any given proposal does not mean that someone is a traitor and there are no moral or
ethical grounds to support the eviction of such parties in a partnership.
This paper uses the Rest Four-component model to evaluate wh...


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