CAN SOMEONE SUMMARIZE THIS CASE STUDY INTO 2 PARAGRAPH PLEASE

REAL WORLD CHALLENGE AN ETHICAL CHALLENGE LOSKUTNIKOV/SHUTTERSTOCK.COM The CEO of a $20 million aircraft engine repair company just received a troubling fax. An airline is reporting that eight jets repaired by his company were just grounded because the turbines no longer worked. The airline claims that the CEO's company's parts are the cause of the problem. Within two hours, more calls come in and a total of eleven planes are grounded because of what the airline claims are problems with his company's parts. Although word has not yet reached the press, the FAA has been notified of the problem. The CEO fears that if his lenders learn of the accusation, the company's loans might be pulled. Not only would this be bad for the company, but it would jeopardize his own finan- cial stake in the firm. Because the FAA has begun an investigation, he reasons, the only thing to do is sit tight until more details are revealed. Unfortunately, the company is also in the middle of its annual audit. As part of the process, the CEO has to sign a letter stating that the auditors have been informed of any outstanding circumstances that more than likely could have a negative financial impact on the company. Disclosing the FAA investigation could mean the financial demise of his company. The CEO states, In my industry, there's a very tight code of ethics about the use of drugs or alcohol by a manufacturer's employees. But there's nothing that tells you how you're supposed to deal with reporting information like this." Imagine that the CEO asks you how to decide what to do. Should he disclose the infor- mation and risk the jobs of hundreds of employees and his own financial stake in the com- pany? Or should he stay quiet until he has more information? After reading this chapter, you should have some good advice for him. ECHO/GETTY IMAGES REAL WORLD CHALLENGE- LOSKUTNIKOV/SHUTTERSTOCK.COM AN ETHICAL CHALLENGE Did the CEO of the aircraft engine repair company his employees if the banks started pulling loans and disclose the pending claim that his company's parts the company had to lay off workers. But he did not were the possible cause of the grounding of eleven consider whether he had any responsibility to pas- airplanes and risk the jobs of hundreds of employees sengers regarding the situation to enable them to and his own stake in the company? Or did he stay make their own decisions about their safety. Years quiet until he had more information? The right choice later, he acknowledged that passengers' safety never is not always clearthis type of decision is typical of crossed his mind when making the decision. many of the tough decisions managers have to The CEO ultimately decided not to disclose the make. information and signed the audit papers. Eventually In this case, the CEO considered that the bankers the FAA concluded that it was impossible to identify might call the company's loans and company inves- who was at fault for the engine failures. The compa- tors might lose their money if word of the FAA investi- ny's name was never publicly disclosed as being a gation got out. He also worried about the effect on possible factor in the grounding of the airplanes