Desperate Air - MGMT 6213 - By: Victoria Rodriguez
Desperate Air Corporation (DAC) is in dire need of capital infusion to stave bankruptcy.
Brent Williams, DAC’s recently hired CEO, has tasked his VP of Real Estate, Ge
...
Desperate Air - MGMT 6213 - By: Victoria Rodriguez
Desperate Air Corporation (DAC) is in dire need of capital infusion to stave bankruptcy.
Brent Williams, DAC’s recently hired CEO, has tasked his VP of Real Estate, George Nash, with
selling a vacant piece of beach-front property that DAC owns. During the course of negotiations
with a potential purchaser, Fledgling Industries, Nash is informed by a friend within DAC of
biohazard waste that is present at the beach-front property. By this point, DAC had already
conducted a full environmental audit of the property prior and failed to find said biohazard
waste. Just as with the CEO in the Seglin article [1], Nash finds himself torn between keeping
quiet and ensuring that the sale goes through, and the morally correct path of disclosing the
existence of biohazard waste on the site to Fledgling.
Both the Seglin CEO and Nash executed a version of RDCAR by first acknowledging
that they faced an ethical dilemma yet failed to thoroughly analyze the full potential
ramifications of their decisions. By consulting with a DAC lawyer on the legalities of disclosure
of the recently discovered biohazard waste, Nash performed a partial Stakeholder Impact
Analysis. If he had gone a step further in RDCAR, he would have realized that Fledgling is also
a Stakeholder in this decision, as well as the community at large. Second, after discovering the
existence of the hazardous material, Nash’s initial reaction was to consult with his CEO for
guidance of how to handle this ethical dilemma as part of the fact-finding process. When
Williams exerted pressure on Nash to close the sale, he consulted with the DAC attorney to
verify his legal obligations, as noted above. Although both the Seglin CEO and Nash have
critical information that affects another party, Nash is not legally obligated to disclose this
information, making his ethical dilemma that much more problematic
[Show More]