Background: Stakeholder theory posits that organizations should consider the interests of all stakeholders—groups or individuals that can affect or are affected by an organization's objectives—when making decisions. Business ethics, on the other hand, revolves around moral principles and values that guide behavior in the world of business. Together, the stakeholder theory and business ethics provide a robust framework for organizations to make ethical decisions that account for a wide range of interests. Objective: The objective of this question is to critically analyze a real-world business scenario using both the stakeholder theory and a business ethics framework. The chosen scenario is the incident of Proton X90 fire risk. The Proton X90, a popular model from the Malaysian automobile manufacturer Proton, faced a significant issue when several units were reported to have caught fire. This incident raised serious concerns about the safety of the vehicle and the ethical responsibilities of the company. The company was criticized for its handling of the situation, particularly its initial response, which was perceived as dismissive of the severity of the issue. The Article: In response to a recent viral video depicting a Proton X90 catching fire, Malaysia's national carmaker Proton will be calling the model owners for a vehicle safety inspection to address potential ground connection issues. Proton identified the grounding connection to the vehicle's body as the primary cause of concern after conducting a comprehensive investigation into the matter, according to a statement from the manufacturer. "An issue has been identified regarding the grounding connection to the body of the vehicle. This can cause overheating in the connecting area when a continuous large current passes through it and can result in a thermal incident due to its proximity to the soundproofing material, said the statement from Proton. "As a safety measure, all Proton X90 owners will be contacted individually by Proton dealers to bring their vehicles for inspection and if required, remedial action will be taken by the service centre to eliminate any thermal risk." Meanwhile, Proton emphasised that the incident is not related to the mild hybrid 48-volt battery used in the Proton X90. Question: Apply Ethical Rules: Utilitarian Rule: Assess the benefits and costs associated to the conduct. Does the company been ethical in their action? Give verdict at the end whether it is ethical or unethical. Moral Rights: Evaluate the actions of the company. Are all the rights of stakeholders been fulfilled? Were they intrinsically right or wrong, regardless of the outcomes? Give verdict at the end whether it is ethical or unethical. Justice Rules: Analyze the scenario in terms of its outcomes. Were the outcomes beneficial or harmful to stakeholders? Were they distributed fairly or unfairly? Give verdict at the end whether it is ethical or unethical. Practical Rule: Review the action of the company on practical rule. Do they openly discuss the action to public? Give verdict at the end whether it is ethical or unethical.

Assignment Question: Stakeholder Theory and Business Ethics Framework

Background:

Stakeholder theory posits that organizations should consider the interests of all stakeholders—groups or individuals that can affect or are affected by an organization's objectives—when making decisions. Business ethics, on the other hand, revolves around moral principles and values that guide behavior in the world of business. Together, the stakeholder theory and business ethics provide a robust framework for organizations to make ethical decisions that account for a wide range of interests.

Objective:

The objective of this question is to critically analyze a real-world business scenario using both the stakeholder theory and a business ethics framework. The chosen scenario is the incident of Proton X90 fire risk.

The Proton X90, a popular model from the Malaysian automobile manufacturer Proton, faced a significant issue when several units were reported to have caught fire. This incident raised serious concerns about the safety of the vehicle and the ethical responsibilities of the company. The company was criticized for its handling of the situation, particularly its initial response, which was perceived as dismissive of the severity of the issue.

The Article:

In response to a recent viral video depicting a Proton X90 catching fire, Malaysia's national carmaker Proton will be calling the model owners for a vehicle safety inspection to address potential ground connection issues.

Proton identified the grounding connection to the vehicle's body as the primary cause of concern after conducting a comprehensive investigation into the matter, according to a statement from the manufacturer.

"An issue has been identified regarding the grounding connection to the body of the vehicle. This can cause overheating in the connecting area when a continuous large current passes through it and can result in a thermal incident due to its proximity to the soundproofing material, said the statement from Proton.

"As a safety measure, all Proton X90 owners will be contacted individually by Proton dealers to bring their vehicles for inspection and if required, remedial action will be taken by the service centre to eliminate any thermal risk."

Meanwhile, Proton emphasised that the incident is not related to the mild hybrid 48-volt battery used in the Proton X90.

Question:

Apply Ethical Rules:

1. Utilitarian Rule: Assess the benefits and costs associated to the conduct. Does the company been ethical in their action? Give verdict at the end whether it is ethical or unethical.
2. Moral Rights: Evaluate the actions of the company. Are all the rights of stakeholders been fulfilled? Were they intrinsically right or wrong, regardless of the outcomes? Give verdict at the end whether it is ethical or unethical.
3. Justice Rules: Analyze the scenario in terms of its outcomes. Were the outcomes beneficial or harmful to stakeholders? Were they distributed fairly or unfairly? Give verdict at the end whether it is ethical or unethical.
4. Practical Rule: Review the action of the company on practical rule. Do they openly discuss the action to public? Give verdict at the end whether it is ethical or unethical.