Business Law

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Business Law
Ethics should always be observed in every aspect of the business; this is to ensure that it stays strictly within the set guidelines (Jennings, 34). In the case of Tenron Inc the management is crafting a dubious scheme that will make them evade the low prices in the energy sector. The small companies have already invested in the natural gas and signed a contract with Tenron Inc; however, the management will violate the ethical value of “taking unfair advantage”, if they go ahead and sell the transport department to a smaller company.
The company will also be violating “hiding or divulging information” since the sale of the transport department will be a secret of the company but the information needs to be known by other parties such as the smaller companies selling natural gas. The Company will also violate “giving or allowing false impression” in view of the fact that they want to sell the transport department to other small companies and imply that they still own the company. By doing so, they will be giving a false impression to the small companies who will still believe that Tenron still owns the transport department.
This goes along with breaking the ethical code “saying things that are not true”, for instance if they had to sell the transport department to another smaller company the management had to entice the buyers through false information (Jennings, 50). This would include telling them how the department is profitable which is not true. They would breach the ethics by selling to the department through false statements of profits.
For the employees and management of Tenron Inc, they would also be breaching the ethic “Condoning Unethical action”, this is because they know that there are dubious deals that will take place and they do not speak out. They would tolerate the company sell the transport department to a smaller company that would later be declared bankrupt if sued (Emerson, 52).
Tenron Inc has not violated the ethic “taking things that don’t belong to you” since they always pay for what they take from the smaller companies. They have also gone into a contract that documents the products taken, and that is why they are stuck to the deal. In fact, Tenron contemplates the idea of not taking the deliveries from the private gas producers, which is the main dilemma. In not taking the deliveries Tenron will also breach a contract which is illegal and unethical (Goldman, & Sigismond, 81).
In every business there will be dilemmas to solve and this does not mean they will always cause conflicts. In resolving the dilemma ethically then it helps the Company get goodwill and create a huge brand name with great reputation (Daft, 67). Tenron should not focus on how “everyone does it” since they may be choosing the wrong decision. They should get an amicable and unique way to solve the problem.
If Tenron placed itself in the shoes of the producer companies how would they feel? It is with no doubt that the company need profits but selling the transport department will also cause huge losses to the producers and also the company that buys the department. In addition, not taking the deliveries will also cause great losses for the producers. On the other hand, if the company does not do anything someone else will; this is because they need to take action before the company get huge losses and be listed of as bankrupt (Kotler, & Keller, 81). The management can also wait for a lawyer to advice on the way forward; this will not be a business professional opinion and hence may cause more conflict. The company cannot also result to following the orders contract with the gas producers since they will continue making more losses.
The final solution will lie on the gol...