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Please I need some critical comments of 100 words each on the 2 answers to this case study
Case Study
The ability of companies to enforce their codes of ethics on international companies has become a
subject of debate in the wake of Me-Too movement. Magna International, Markham, Ontario-based
Canadian automotive parts manufacturer engaged in questionable practices when dealing with the USbased the Big Three automakers.
Magna employees, in attempts to win lucrative contracts, courted automakers purchasing agents with
lavish gifts and entertainment, including visits to topless bars, golf games, tickets to sporting events, and
an excursion to Las Vegas. These gifts are in direct violation of the Big Three automakers. A woman who
was employed by Magna in a key sales position, contends that women were routinely subjected to sexist
name-calling and unwanted touching by purchasing agents for the Big Three automakers.
1. Apply Donaldson’s ethical algorithm to identify whether it is Type 1 conflict or Type 2 conflict and
recommend an appropriate action for the purchasing agents of Big Three automakers.
2. What ethical guidelines should Magna International incorporate in it’s code of ethics to ensure
responsible business in the global marketplace. Support your recommendation with ethical framework,
perspectives, and universal values.
3. Which ethical principles from the UN Global Compact do you think if incorporated in Magna
International’s code of ethics would protect Magna’s employees (particularly women sales person) when
conducting business outside Canada.
Answer option 1
1. The Donaldson Type II Conflict is most applicable to the issue facing the U.S. Big Three. When
considering the current state of both countries, in regard to laws, values, and practices. There are certain
codes of ethics violated. The awareness of it is heightened by movements such as Me Too. These are
cultural movements specific to the time which advocate specifically for the removal of sexual harassment
and protection of people facing workplace harassment. This directly correlates to the experiences of the
women in the Big Three and the gift exchange by Magna International. The fact the gifts violate policy
shows too, the historical custom of type of gift exchange, for there to be a law prohibiting it. The Big Three
should start an investigation and fire those who are connected to accepting the gifts and engaging in
workplace sexual harassment. They should also find a safe more reputable company to do business with.
2. There are a few values which Magna International should consider. The primary ones are anti
corruption, human rights, and environment. Also, the company should consider their relativism in
business. Magna International need to create doctrine, practices, and a culture which make both men and
women feel safe in the workplace. Developing and enforcing doctrine which prohibit bribery is a step
toward anti corruption. Creating a moral minimum for international relations would act as a step toward
preventing relativism. Lastly Magna International should hire an ethics officer, to help facilitate the
change. Ethics officers monitor progress, host trainings, and handle ethics code violations.
3. The first two United Nations Global Compact principles would best suite the need to protect women
sale representatives. Principle 1: Businesses should support and respect the protection of internationally
proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses.
Both principle go hand in hand to ensure women’s safety is at the forefront of the business. Sexual
harassment violates human rights.
Answer option 2
1. According to Donaldson’s ethical Algorithm, the type of conflict in the case of Magna International and the
purchasing agents of the Big Three automakers is TYPE 2 CONFLICT (Cultural)
Type 2 conflict(cultural) stated that this “practice is permissible if it meets the following criteria:
1. Business cannot be conducted in the host country if this practice is not undertaken
2. This practice does not directly violate international rights.(Thomas Donaldson, page 141, Morgan State
University “BUAD 625” “Fall2019”).
This type of practice is not allowed in both countries because this is the violation of human rights. The
appropriate action I will recommend is that Magna female sales employee and other women that have been
abused by the foreign company to sue the Big Three automaker purchasing agents for what they
did.
2. The ethical guidelines Magna international should incorporate in its code of ethics a practice that enables
the foreign business partner to show respect for the human right of all people in its company.
ETHICAL FRAMEWORK
The ethical framework that supported my recommendation is level 3 of stakeholder framework: RESPECTING
SOCIETAL STANDARDS OF CONDUCT. Magna international need to incorporateThis stakeholder framework
mentions some key strategies that can be followed in respecting societal standards of conduct and the one
that is really particular to this case in that the Big Three automakers agents need to analyze and understand
the relevant standards of conduct of where the company operates both home and abroad.
3. The ethical principle from the UN Global Compact that will protect Magna’s employee particularly women
when incorporated in Magna’s international code of conduct is
1. Support and respect for the protection of internationally proclaimed human right; and
2. Make sure they are not complicit in human rights abuses.
Human right is universal, and every person deserves to be treated with dignity and equality. Magna
International must address any human rights abuse issue that occurs in its company especially if it happens
to the female counterpart. Magna must have a policy that protects the female employee in its code of ethics on
how to deal with any abuse that might happen from its foreign customers.

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