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Operations Management 
Please write 300 words or 1 page the following:
 Read the B2E Case Study 9: Production Disruption, available in the Course Resources area. Identify the ethical issues that may be unique to the field of Operations Management in this company and the ethical issues relating to corporate responsibility. Discuss ways to successfully role-model and promote ethical values and principles with B2E.

 

 

Ethics
 in
 Business
 

 

B2E
 Case
 Study
 9
 
“Production
 Disruption”
 

Mr. Biggs and Donna were meeting when Wally rushed in to announce that Japan had just suffered
an enormous earthquake and tsunami. He reported horrendous widespread damage.
The group turned on the news to see what they could learn. They heard that the Fukushima Dai-
ichi nuclear power plant, not far from their subsidiary, had been damaged, and there was threat of a
nuclear meltdown and subsequent high radiation.

Wally reminded them that Nakamura Industries had developed emergency procedures covering
most catastrophic events, but expressed doubt about handling a double disaster. Mr. Biggs
assigned the group to contact their Japanese colleagues for more information. Mr. Biggs scheduled
an emergency-planning meeting for late Saturday afternoon to present their findings.

At the meeting, Tina reported that though there had been some structural damage to the physical
plant, it would be possible, with minor repairs, to be up and running again at 100% in about a
month. Paul reminded Tina that Nakamura’s suppliers had all been destroyed by the tsunami, so
operations there were still compromised.

Tina objected that she had worked long and hard to win that contract with Nakamura Industries
and felt a loyalty to stay on Japanese soil. She said that this would be a good way to help the
Japanese economy get back on its feet. Wally interjected that Nakamura observed “just-in-time”
business policy, so there was now no excess inventory to fulfill current orders to clients.

Donna reminded them all that the nuclear disaster with its radiation plume was a big consideration.
She stated that possible radiation exposure to their workers- still an unknown factor- was of
paramount concern. She said employees had become fearful of the fallout, and there was concern
that nuclear plant officials and the Japanese government might not be forthcoming on all
information regarding the safety issues.

Wally reported that some international corporations were airlifting their citizens out of the country
to places like Singapore and Hong Kong. Paul replied that chartering a jet would incur enormous
expense. He further advised that there would also be an issue with acquisition of jet fuel upon
departure because of fuel shortages in Japan.

Donna stated that employee safety was first and foremost consideration. She said that if the
radiation threat reached the worst-case scenario it could be years before B2E could operate in
Japan.

As Mr. Biggs sat and listened, he thought about how unfortunate it was for B2E to pull out of
Japan just after beginning to see a return on their investment. He pondered the need to stay
flexible, and possibly use the opportunity to expand B2E’s supply chain resources.

What would you say? What would you do? How could you be most effective?