Free Becton Dickinson: Ethics and Business Practices (A) Case Study Solution | Assignment Help

Harvard Case - Becton Dickinson: Ethics and Business Practices (A)

"Becton Dickinson: Ethics and Business Practices (A)" Harvard business case study is written by Lynn Sharp Paine. It deals with the challenges in the field of Business Ethics. The case study is 26 page(s) long and it was first published on : Sep 17, 1998

At Fern Fort University, we recommend that Becton Dickinson (BD) implement a comprehensive and proactive approach to ethical business practices, incorporating a robust framework for ethical decision-making, transparent communication, and a strong commitment to corporate social responsibility. This framework should be integrated across all levels of the organization, from leadership to individual employees, and should be continuously reviewed and updated to reflect evolving ethical and legal landscapes.

2. Background

This case study focuses on Becton Dickinson (BD), a leading global medical technology company, grappling with a series of ethical dilemmas. The case highlights instances of potential conflicts of interest, questionable sales practices, and a lack of transparency in communication. These issues raise concerns about BD's commitment to ethical business practices and its impact on stakeholders, including customers, employees, and the broader community.

The main protagonists in the case study are:

  • BD executives: They are responsible for setting the ethical tone of the company and ensuring compliance with ethical standards.
  • Sales representatives: They are on the front lines of interacting with customers and are faced with ethical dilemmas regarding sales practices and potential conflicts of interest.
  • Customers: They rely on BD for high-quality medical products and expect ethical and transparent business practices.

3. Analysis of the Case Study

This case study can be analyzed through the lens of Stakeholder Theory, which emphasizes the need for organizations to consider the interests of all stakeholders, not just shareholders. The case reveals a disconnect between BD's stated commitment to ethical conduct and its actual practices, leading to potential harm to various stakeholders.

Key Issues:

  • Conflicts of Interest: The case highlights potential conflicts of interest arising from sales representatives' relationships with customers and their incentives to push specific products. This raises concerns about the integrity of decision-making and potential bias towards products that benefit the representative's personal interests.
  • Transparency and Communication: The lack of transparency in communication between BD and its customers regarding product performance and potential risks raises concerns about trust and accountability. This lack of transparency can lead to misinformed decisions by customers and erode public confidence in BD.
  • Ethical Leadership: The case suggests a lack of strong ethical leadership within BD, as evidenced by the absence of clear guidelines and procedures for addressing ethical dilemmas. This creates a culture where ethical considerations may be overlooked or compromised for short-term gains.

4. Recommendations

To address these issues and foster a culture of ethical business practices, BD should implement the following recommendations:

  • Develop a Comprehensive Code of Conduct: BD should create a comprehensive and clearly articulated Code of Conduct that outlines ethical expectations for all employees, including specific guidelines for handling conflicts of interest, reporting ethical concerns, and ensuring transparency in communication.
  • Implement Robust Ethical Decision-Making Framework: BD should establish a robust framework for ethical decision-making, including training programs for all employees on ethical principles, decision-making models, and resources for navigating ethical dilemmas. This framework should be regularly reviewed and updated to reflect evolving ethical and legal landscapes.
  • Promote Transparency and Open Communication: BD should prioritize transparency in communication with all stakeholders, including customers, employees, and the public. This includes providing clear and accurate information about product performance, potential risks, and any relevant ethical considerations.
  • Establish a Whistleblower Protection Program: BD should implement a robust whistleblower protection program that encourages employees to report ethical concerns without fear of retaliation. This program should include clear procedures for reporting concerns, independent investigations, and appropriate protections for whistleblowers.
  • Strengthen Corporate Governance: BD should strengthen its corporate governance practices by establishing an independent ethics committee with oversight responsibilities for ethical conduct and compliance. This committee should be comprised of diverse individuals with expertise in ethics, law, and business.
  • Promote Ethical Leadership: BD should prioritize ethical leadership by selecting and developing leaders who demonstrate strong ethical values and commitment to ethical business practices. This includes providing leadership training on ethical decision-making, fostering a culture of ethical behavior, and holding leaders accountable for ethical conduct.
  • Integrate Sustainability and Social Responsibility: BD should integrate sustainability and social responsibility into its business practices. This includes adopting green business practices, promoting diversity and inclusion, and engaging in ethical sourcing and fair trade practices.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: BD's mission is to improve the health of people around the world. Ethical business practices are essential to fulfilling this mission and building trust with customers, employees, and the broader community.
  • External customers and internal clients: BD's recommendations are designed to address the concerns of both external customers and internal employees, ensuring that all stakeholders are treated fairly and with respect.
  • Competitors: By adopting a proactive approach to ethical business practices, BD can differentiate itself from competitors and gain a competitive advantage in the marketplace.
  • Attractiveness ' quantitative measures: Ethical business practices can lead to increased customer loyalty, improved employee morale, and a stronger brand reputation, ultimately contributing to long-term financial success.

6. Conclusion

By implementing these recommendations, BD can demonstrate its commitment to ethical business practices and build a culture of integrity and trust. This will strengthen its relationships with stakeholders, enhance its reputation, and contribute to its long-term success.

7. Discussion

Alternative approaches to addressing the ethical issues in the case study include:

  • Ignoring the issues: This approach carries significant risks, including reputational damage, legal consequences, and loss of customer trust.
  • Responding only to specific complaints: This approach is reactive and may not address the underlying systemic issues contributing to ethical lapses.

The recommendations presented in this case study solution are based on the assumption that BD is committed to ethical business practices and is willing to invest the necessary resources to implement the proposed changes. However, there are risks associated with implementing these recommendations, including:

  • Resistance from employees: Some employees may resist changes to existing practices or perceive the new ethical framework as overly burdensome.
  • Increased costs: Implementing a comprehensive ethics program can involve significant costs for training, resources, and compliance monitoring.
  • Potential for unintended consequences: Implementing new policies and procedures can sometimes lead to unintended consequences, requiring ongoing monitoring and adjustments.

8. Next Steps

BD should prioritize the following steps to implement the recommendations:

  • Form a cross-functional task force: This task force should be responsible for developing and implementing the proposed ethical framework.
  • Develop a comprehensive communication plan: BD should communicate its commitment to ethical business practices to all stakeholders, including employees, customers, and the public.
  • Conduct regular audits and assessments: BD should conduct regular audits and assessments to ensure compliance with the ethical framework and identify areas for improvement.
  • Continuously review and update the framework: BD should continuously review and update the ethical framework to reflect evolving ethical and legal landscapes.

By taking these steps, BD can create a culture of ethical business practices that will benefit the company, its stakeholders, and the broader community.

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Case Description

Becton Dickinson's Global One-Company Operations Group must decide on the company's global policy on gifts, gratuities, and business entertainment. A central issue is whether the policy should be established centrally and made uniform worldwide or whether it should be decided locally, depending on local circumstances and practices. The case contains numerous examples of troubling situations drawn from different regions of the world, as well as background information on growing anticorruption efforts worldwide.

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