Caribbean Energy (CE) has recently taken over a fuel supply plant which is in close proximity to one of its competitors. The collection point for both fuel companies is located at the same seaport. The General Manager of CE intends to hire a consultant to train CE’s employees regarding the new procedures for affixing the fuel lines at the collection point to the high-capacity storage tanks and is debating whether the competitor should be invited to attend given that they use the same seaport. The (GM) is mindful of the high cost of hiring the consultant and sourcing the equipment to train CE’s employees and is therefore hesitant to invite his competitors. He is also aware that there have been no accidents at the port since operations started 10 years ago and might not invite the competitors to participate in the training. The GM decides, based on the high price for the consultant (facilitation fee, air travel, accommodation) and the training material that he will not invite the competitor to participate.   You are the manager in charge of operations and you are aware that a mishap at the port by either company will adversely affect operations in both fuel plants. Based on your knowledge of ethical leadership, do you consider the GM an ethical or unethical leader?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
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 Consider the below scenario:

Caribbean Energy (CE) has recently taken over a fuel supply plant which is in close proximity to one of its competitors. The collection point for both fuel companies is located at the same seaport. The General Manager of CE intends to hire a consultant to train CE’s employees regarding the new procedures for affixing the fuel lines at the collection point to the high-capacity storage tanks and is debating whether the competitor should be invited to attend given that they use the same seaport. The (GM) is mindful of the high cost of hiring the consultant and sourcing the equipment to train CE’s employees and is therefore hesitant to invite his competitors. He is also aware that there have been no accidents at the port since operations started 10 years ago and might not invite the competitors to participate in the training. The GM decides, based on the high price for the consultant (facilitation fee, air travel, accommodation) and the training material that he will not invite the competitor to participate. 

 You are the manager in charge of operations and you are aware that a mishap at the port by either company will adversely affect operations in both fuel plants. Based on your knowledge of ethical leadership, do you consider the GM an ethical or unethical leader?

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