Lamboz, a chemical distribution organization (with 1200 employees) is in the process of a successful turnaround, after having appointed Mr Radha Varre ten months ago. Mr Radha is a strategist with a very successful reputation for reviving struggling corporations. The company is just starting to break even and is showing excellent growth prospects. Top management is extremely optimistic and relieved that the threatened mass retrenchments appear to have been averted. The climate in the company has changed completely. Morale is high and employees are motivated and working productively. Today however, the ethics committee is meeting to discuss a very disturbing piece of information that has come in from the ethics hotline. It appears that Mr Radha has been utilising a strategy that was devised by another company, Rosebank, to which Mr Radha had access, but was bound from using by a non-disclosure clause. This fact was therefore not known by anybody at Lamboz. Lamboz is fighting for survival and has just started a recovery, in fact it may not succeed without Mr Radha at the helm. However, the company’s reputation is at stake. Either way, the future again appears bleak 1.1 Discuss and critically evaluate main ethical issues in this case. 1.2 Discuss how this organization would go about solving this problem. Support you answer with theory and practical examples
Lamboz, a chemical distribution organization (with 1200 employees) is in the process of a successful
turnaround, after having appointed Mr Radha Varre ten months ago. Mr Radha is a strategist with a
very successful reputation for reviving struggling corporations. The company is just starting to break
even and is showing excellent growth prospects. Top management is extremely optimistic and relieved
that the threatened mass retrenchments appear to have been averted. The climate in the company
has changed completely. Morale is high and employees are motivated and working productively.
Today however, the ethics committee is meeting to discuss a very disturbing piece of information that
has come in from the ethics hotline. It appears that Mr Radha has been utilising a strategy that was
devised by another company, Rosebank, to which Mr Radha had access, but was bound from using by
a non-disclosure clause. This fact was therefore not known by anybody at Lamboz.
Lamboz is fighting for survival and has just started a recovery, in fact it may not succeed without Mr
Radha at the helm. However, the company’s reputation is at stake. Either way, the future again
appears bleak
1.1 Discuss and critically evaluate main ethical issues in this case.
1.2 Discuss how this organization would go about solving this problem. Support you answer with
theory and practical examples
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