81. This company memorandum suggests that, in lieu of adopting an official code of
ethics, the company should conduct a publicity campaign that stresses the importance of
promoting certain societal interests. The reason for the suggestion is that an official
code of ethics might harm the company in the public eye because a competing company
received unfavorable publicity for violating its own ethics code. This argument is
unconvincing, since it depends on several unwarranted assumptions as well as arguing
against its own conclusion.
First of all, the author unfairly assumes that the two companies are sufficiently
similar to ensure the same consequences of adopting an ethics code for this company as
for its competitor. The competitor may have adopted an entirely different code from the
one this company might adopt―perhaps with unrealistic standards not embraced by any
other companies. Perhaps the competitors violation was extremely egregious,
amounting to an aberration among businesses of its type; or perhaps one notorious
executive is solely responsible for the competitors violation. Any of these scenarios, if
true, would show that the two companies are dissimilar in ways relevant to the
likelihood that this company will experience similar violations and similar publicity if it
adopts any ethics code.
Secondly, the author unfairly assumes that the competitor was damaged by its
code violation and the resulting publicity more than it would have been had it not
violated its code. Just as likely, however, the violation was necessary to ensure a certain
level of profitability or to protect other important interests. Without knowing the extent
and nature of the damage resulting from the bad publicity or the reason for the violation,
we cannot accept the authors conclusion.
Thirdly, the authors proposal is inconsistent with the authors conclusion about
the consequences of adopting an ethics code. The author suggests that, instead of
adopting an ethics code, this company should stress the importance of protecting the
environment and assisting charitable organizations. This proposal is tantamount to
adopting an ethics code. In this sense, the author suggests going against his own advice
that the company should not adopt such a code.
in conclusion, differences between this company and its competitor may
undermine the authors conclusion that this company should not adopt an ethics code.
To better evaluate the argument, we need more information about the nature of the
competitors ethics code and about the nature and extent of the violation. To strengthen
the argument, the author must accord his advice with his conclusion that the company
should not adopt an ethics code.
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