Kobe Steel Limited

Kobe Steel Limited

Kobe Steel Limited’s industrial scandal was ranked third in Japan’s most prominent ethical cases. After bringing the scandal into the lame light, Kobe Steel Limited claimed that individual staff members falsified data regarding the durability and strength of specific copper and aluminum products used in the development of trains, planes as well as potential space rockets. Later, the steel quality was in doubt which has made the company to continuing experiencing roughness in the markets

  • Determining Facts

Resist an immediate judgment call

When the Kobe denies the scandal accused of will prevent concerns that arise regarding the integrity of Japanese Manufactures. The company Chief executive officer should term the whole problem as an unknown error under investigation hinting that internal mechanical issues might be the cause. The company should assure the other stakeholders that none of the customers had requested for cancellation of the contract nor claiming the firm to bear the cost that customers can suffer.

Secondly, lack of admission will ensure that companies do not recall their products. For instance, some of the global firms such as Nissan Motor Company will not return their vehicles to the factory after discovering of cars used the low-quality material in the market. Admission of a mistake, however, makes the customers suffer financial loss. For example, Takat, a Corporation pledged or pleaded guilty to deceiving automakers regarding their air bag’s safety status resulting in financial loss.

Gathering of facts

The management should gather all evidence showing that their company provisions did not meet the set standards. For instance, the administration should visit companies such as the Mazda, Ford, Nissan, Honda, and Toyota Motor Company as they inquest of their complains. The management should note that when an ethical choice is seen to be difficult, the need for consulting or discussing with customers becomes increasingly essential. Consulting also requires careful exploration regarding the ethical issue at hand aided by different perspectives. The accurate facts are achieved if all stakeholders share and agree on reasonable moral choices.

Multiple sources of information

The management should ensure identified the maximum number of sources of facts that will enable company makes a rational decision. Some of the stakeholders that can be used are the direct customers considered of high net worth customers. These customers are Honda Motor Company, Toyota Motor Corporation, which transact with the company. Secondly, the various well-wishers of the firm and the third source of information are the professionals in the making of those products as well as the government officials.

Facts and assumptions

When Kobe steel limited establishes the relevant facts that will assist to help in dealing with the ethical issue to improve the current issue. For instance, the tendency of overlooking the data regarding the strength and durability of steel and aluminum which can cause massive damage to the stakeholders. Secondly, wrong information regarding the copper piping, as a result, a company that uses the copper can suffer an explosion due to danger imposed by the material.

Thirdly, the company did not issue safety checks as well guarantees since it skipped some safety data check-ups. Fourth, the faking of reports that indicated that all the products shipped met the specification, but they had not met.

Follow the money

The management should make the decision that is finance based. For instance, they should not recall the products that are already out there, but the company can guarantee the customers, and the stakeholders will ensure appropriate dealing with such mistakes before tarnishing of the brand image.

  • Identify the Issue

Kobe steel limited supplied materials of all kinds which include the aviation, nuclear powers, and automobiles that had not met the specifications required by their customers. This makes the products to be vulnerable to the danger of explosions and durability. Recognizing ethical issues that the company is facing is the first step, which should be undertaken by Kobe Company, in a moral framework in the business environment as a result of falsifying to consumers (Asgary et al., 33).

  • Identification of Stakeholders

The stakeholders who are directly affected are the customers who buy products. Also, the company itself which is at risk of insolvency. Third, the employees who gave wrong data as well as those who did not. Even the people who live directly with those employees who have suffered such as the families. Pinpointing of all the stakeholders that are involved in the issue at hand and determine how the problem does not affect them (Ferrell et al. 22). Therefore, identifying holders will enable the management to make decisions for the best interest of the company (Cremer, 78).

Trained sensitivity towards practiced methods as well as an ethical issue is highly required by the management of any organization when making sound moral decisions. Adequate skills will enable such individuals to explore ethical aspects of a decision in addition to weighing the considerations, which should affect the company’s choice in regards to the course of action.

  • Alternative Course of Action

An alternative course of action needs to be identified to allow all the participants participate thoroughly and ensure creativity.

Wild scenario

On the other hand, call for an offer of those products that are regarded to be unfit for the companies and indicate how many of them are not sincere in their decisions.

  • Checking how the Course of Action will Likely Affect Stakeholders

Beneficial or harmful choice

Identification of the benefits and the negativities related to the practical approach, one needs to answer some few questions that enable the Kobe steel limited come up with a sound rational decision. The customers are involved in the process of comparison of the appropriate option. Also, the decision will ensure that it has brought no harm even to all across its operations. However, the decision made should provide consideration of all the stakeholder’s rights as well as the community.


Considering law

Kobe manufacturers should consider engaging a lawyer when they want to make a viable decision. The lawyer will enable the management to identify all ethical issues found.  Therefore, administration should consult a lawyer when renewing all of its contracts with the clients

Conflict of interest

Kobe manufacturer’s attention is to retain the customer despite the ethical issue of producing goods that are not up to the standard. On the other hand, some customers want the Kobe manufactures to accept any loss that the stakeholders will suffer entirely.

  • Seeking Guidance

Outsourcing guidance from various professionals also will enable Kobe steel limited to have a viable decision. All unknown circumstances need to be identified and intensify the process of learning more about the ethical issue (Ryan, 28)Kobe Manufacturers need to understand that an informed and viable decision not realized unless gathering of all problems is done.

Close friends: Kobe steel limited should reach the well-wishers and the close friends of the company who can either be directors or professionals. the advice that will be given by a friend will ensure settling of the ethical case involved in a manner that does not destroy the brand’s image nor the company’s reputation permanently

People they respect. These are people who were having the same case. The will assist the management of Kobe company on advice on how they dealt with the facts as well as the outraged customers as well as the potential customers. Kobe company will use the ideas to make their case better.

Knowledge sources. These are experts in the matters concerning the ethical issues. These sources are; Subject matter specialist: these are professionals who know about dealing with problems that are capable of tarnishing the company’s image. The company management will use the specialist to advise them on how to go about an ethical issue.

Reference librarians: management should ensure that it consults reference librarians. They will assist in advising the administration basing it on cases referred to and how they deal it out before causing permanent tarnish to the image.

Authors, researchers, professors, and pastors: Kobe management team should ensure that the organization of authors does not reflect so much on the lewd act. They will ascertain that the ethical case is not spread further by competitors. They will also ensure that Kobe steel limited retention of reputation.

  • Make a choice

Kobe Manufacturing Company needs to sufficiently identify and make comparisons between different approaches to determine the option that best suits the ethical situation (Ferrell et al. 27). Choosing a plan will require the management of Kobe Manufacturing Company to involve outsiders by getting their opinion.

Something constructive

Virtue approach encourages the administration to inquire if their potential action is more likely to enable them to become the individuals they wanted to be (Ferrell et al. 24). The approach is regarded to be one of the oldest strategies towards ethical actions, usually, consistent with particular ideal qualities (Barnett and Johnson 69). The method uses habits and dispositions that enable individuals to act according to the highest potential of their specific or individual character and on behalf of particular values such as honesty, truth, beauty, generosity, love, tolerance, self-control, fidelity, fairness, prudence as well as patience.

Monitoring the outcome

The management will ensure that it has considered different views and comments from the stakeholders. For instance, they will ensure that all harmful and positive feedbacks taken Then, after comparison of the options that are viable, the management using the approach will establish an opportunity that is likely to have less harm and maximum goods.

Defending the choice made

Perhaps the best source of the ethical standard that could have been considered by Kobe Steel Limited is justice and fairness approach. The method was created and frequently used by several Greek Philosophers, including Aristotle (Wisnewski, 311). In terms fairness and justice, the plan argues that equals need to be treated equally, which can be applied in the business environment today.

Every solution has problems.

All solutions have problems. Kobe steel limited should base their decision on specifically the financial gain despite other hindrances. Some of the impediments may come from the professionals as well as the competitors.

Works Cited

Asgary, Junck, Ramin, Emily. “New trends of short-term humanitarian medical volunteerism: professional and ethical considerations.” Journal of Medical Ethics. Pg 30-39.2013.print

Barnett, Jeffrey E, &W B. Johnson. Ethics Desk: Reference for Counselors. Amer Counseling Assn; 2 edition pg 213.2014.print.

Cremer D. Psychological Perspectives: Ethical Behavior and Decision Making. Information Age Pub, pg 78. 2009.print.

Ferrell, O. C, et al. Business Ethics: Ethical Decision Making and Cases. Houghton Mifflin Co press.Pg 136. 2008.print.

Ryan, C.J,“Ethical issues, part 2: ethics, psychiatry, and end-of-life issues”. Psychiatr Times. Pg. 26–27.2010. Print.

Wisnewski, J. “Perceiving Sympathetically: Moral Perception, Embodiment, and Medical Ethics.” Journal of Medical Humanities: 309–319. 2015 print.


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