There are some evident ethical implications and moral dilemmas associated with the Rae Properties Inc dilemma. In this case, Jeff’s predicament revolves around two key issues. On the one hand, if he were sincere to the investors he would risk the business, since the probability of getting a tenant at the ninety percent-occupancy rate would be negligible.
On the other hand, Jeff may perhaps cause the firm to stand a better chance of getting an investor due to the partially hidden details in the prospectus.
As a result, if the client discovers these details and decides to act out, Jeff might compromise the reputation of the company and drive away other potential investors in future. Such attack would greatly ruin the company’s reputation. The initial question that Jeff must contemplate and find an answer for is whether he would be reacting ethically by burring very important information in the prospectus.
In relation to Buerki and Vottero (2002), on identification of moral parameters, it would be important to be as concise as possible over the extent to which the decision that Jeff makes would have on the reputation of the firm. For instance, what extent would the high break-even occupancy rates affect segments of the clientele?
The process of problem analysis and identification should also involve analysis of the effects of legal constrains that are involved. Jeff has catered for any form of legal implications that can arise because the information is not totally omitted but partially concealed. Jeff fails to emphasize the information to take advantage of investors who might not be keen enough.
Another ethical issue represented in the case study involves invoking the conscience clause in relation to the law. The investors obviously lack proper information regarding all details of the contract. Like many marketers, Jeff is using a scrupulous method of capturing attention of potential clients due to the influence on sales.
Social group and the public in general have different perspective over business need since they feel that an action ought to be driven by consciousness. Jeff needs to analyze his consciousness and validate against the laws governing real estate companies, thus the reason that he need to find a better way of convincing potential client.
The decision Jeff makes during the design of the prospectus ought to enhance the relationship between the company and the potential clients rather than conform to a fixed professional code of ethics or organizational culture. Jeff is interested in enhancing measures that assist the firm to maximize profits.
Some of this internal bureaucratic rules and regulations are crafted in such a way that they enhance the internal efficiency of the firm, but on the other hand compromise the good relationship with the customers. These are third party Ethical constraints.
Jeff is trying to find loopholes for generating more profits from the firm but exploitation clients. What will be the public perception or reputation of the firm if the matter became a court case (in which case the company would easily win)? Is such exploitation ethical in a business setting? Jeff needed to consider these questions, before coming up with structure of the prospectus. His action is arguably justifiable because such an investment requires a keen check of details before signing the deal.
His alternative course of actions must first involve the client. Relevant research can provide some positive reasons why an investor should take the offer by the company regardless of the high rate increase after four years. An ethical dilemma and reasonable data mining just before making the final decision would assist him find a better and ethical marketing strategy, which would not compromise the moral principles of the firm concerning business ethics.
Buerki, R & Louis V. (2002). Ethical Responsibility in Pharmacy Practice. Chicago: Amer. Inst. History of Pharmacy Publisher.