Business Assignment: Ethical Dilemma Cases in Fonterra Company

November 21, 2017
Author : Alex

Solution Code: 1GJC

Question: Business Assignment

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Business Assignment

Case Scenario/ Task

Write a fictional scenario of FONTERRA Company how this social performance issue/ethical dilemma could have emerged for people involved with this company.

Scenario Development

Develop a fictional scenario that outlines how this ethical dilemma could have presented itself at this company. This scenario should be written as a narrative piece, similar in format and style to the GVV/Babson scenarios.

Your scenario should describe a possible workplace situation that illustrates the emergence of this dilemma as a values conflict for one or more people.

It should introduce the key stakeholders & characters, the key facts and the background information that has led to this issue.

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Ethical dilemmas are common in today’s society. Individuals face two or more conflicting issues and have a difficulty in making a decision in these cases.  Generally, individuals do wonder what to do. Some of the cases involve either investing in agriculture or technology. Sometimes it is vital to consider how ethical dilemma can occur in your company and finding possible solution of the situation. Therefore, it is significant to define precise definition of what comprise ethical conduct, and clearly define the best workplace exercise and how to manage them. In determining what an ethical dilemma is comprised of, it is important to know the difference between values, laws, ethics and policies. Ethics are principles that enable one to determine what the right action in a scenario is. Thus, ethical dilemma involves conflicting issues

A scenario of FONTERRA Company with ethical dilemma

A scenario in FONTERRA Company may arise during the employment of the workers. With this case, dilemma, which is well known to be a conflict situation between rights against right, may emerge (Frank, 2002). The most critical question is how to manage a performance review for a respected and well-liked person whose performance is poor because of insufficient skills, putting in mind that the individual is the main provider of a big family.  In this case, the employer should follow the standards outlined in the company constitution regarding the requirement of the employee. Such kind of e person with limited skill should be employed in departments where his skills match with the task to be performed. Some other factors may sophisticate some issue. Majority says we are in the era of ethical crisis; however, critical conflicts may be that of value courage. Having been given an ethical dilemma, you may not distinguish between what is ethic and right. Therefore, it is necessary to know that ethical dilemma is different from other moral, laws and policy dilemma (McNamara, 2016). Ethical dilemma involves two conflicting issues.

Another scenario of ethical dilemma may present itself in FONTERA Company in this way. Fonterra Company, which is also known to provide veteran services. A case may present itself where a social veterinary in a rustic society is consulted by a client whose cattle is suffering from rinderpest, a well-known deadly disease in pastoral community. A social worker who specialized with Newcastle disease may not be in a position to treat the cow. Due to the incompetence of the worker, the cow may not receive treatment meaning that the client will have to lose it. Denying to treat the cow may is a conflict with our obligation of promoting the health of cattle’s in the society with the agenda of increasing milk production. This is a dilemma because the two ethical morals conflict .this can be resolved by considering the ethical values that a worker would only accept job on basis of his or her skills order to maintain his job and continue exercising his or her career the worker may discuss the limits of her employment considering her limitation and capability of performance. In this case, FONTERRA Company may decide to offer training services to its workers to improve their skills.

A scenario may arise in FONTERRA Company where conflicting interest exist. Sometimes pressure occurs in the workplace that is against formulating ethical judgement but to some extent; it brings benefit to the company. For example, a head of finance may pressure the financial controller to stick to the accounting management that is not ethical. It simply goes against the accounting principles, but at the same moment, it may help the company achieve its annual earning expectation. This results to high returns of FONTERRA Company. It is expected that every shareholder is happy as a result of increased dividends. However, it is wrong to handle earnings in ways, which shows what the company wanted instead of what is in agreement of accepted principles of accounting exercise (Prentice, 2002). It is well known that when decision is made to effect the earnings of one year, it may affect the future year’s earnings. Referring to this example, when such ideologies arise in different supervisors steps should be followed to avert the treatment including consulting the board directors. It is important to ensure that the directors have known about it and the measure they are taking to correct it. Then if the audit decides to stick to the accounting principles then it important to consider bringing attention of the external authority. Legal advice should be offered at this point to avoid going against confidential obligation to the employers. The best decision to make at this stage is to link the auditor and request the parties in approaching directors.


In a big Company like FONTERRA and the rest it is vital to understand ethical standards that guide the performance of a company in every department. It have been evidenced that most workers do not differentiate between ethic and doing the right thing. Failure to adhere to ethical standards may result to future downfall of a company.

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