Accounting 504

Discussion Question #1: In times of crisis, does an ethical approach to handling it make a difference? Provide examples to illustrate.

Yes an ethical approach to handling a crisis makes a difference. According to Brooks and Dunn, if ethical behavior is considered to be of great importance by a corporation in its normal activities, ethical considerations should be even more important in crisis situations, since crisis resolution decisions usually define the company’s future reputation (pg. 489). Brooks and Dunn, also pointed out the 71 percent of respondents to a Fortune 100 survey of crisis management said they had a crisis management plan/ program in place (pg. 488). By taking an ethical approach and having a plan in the case of a crisis occurring, employees know what to expect, and what steps to take when dealing with the crisis. Also, it helps resolve the issue(s) at hand faster which allows faster results.

For example look at the oil spill crises BP had. According to BP’s website, they try to avoid having oil spills, but if they happen they implement their crisis management plan on how to clean up the oil spill. They complete environmental impact assessments for many of our projects, using modeling and predictive assessment tools to assess the potential impact of a spill or leak. They then formulate crisis management and oil spill plans, addressing potential scenarios and response strategies, including how we would work with designated regulatory bodies in the event of a spill and what personnel and equipment would be needed. BP also takes into consideration the size of the spill, where it happened, whether it is in water or on land, and the weather into consideration when following through on their crisis plan. By having an ethical plan in place allows everyone to know steps that need to be followed.