Introduction
Tricky technology requires additional capital in order to expand its businesses and increase credit worthiness. The two major shareholders of the Company have developed conflicts of interest regarding the sources of capital. Chris Good, the founder and president of Tricky technology views success and long term growth of the Company powered by research and development.
The other major shareholder, Terry Fast seems to disagree with Good’s perception by viewing short term strategies as fundamental for the growth of the Company. Due to the huge debt owned by the Company, the two major shareholders are into disagreement concerning the right option to raise the funds. This has led to conflicts of interest which may affect the operations of the Company.
Ethical Situation
The disagreement between the two major shareholders due to conflicts of interest regarding control of the Company may highly affect reputation and performance of the business. Good views that sourcing for additional capital through issuance of stock shares is not considerable since it will dilute the Company’s ownership. This decision will hinder Good from participating in the issuance of the Company’s stock shares hence making Fast the president.
The change in leadership will largely affect the relationship of between the Company and the stakeholders. This is because they are strange to the new entrants thus affecting growth and development of the Company. The conflicts of interest between the two major shareholders will mostly affect the operations of the Company. Fast is after power in order to take control of the Company.
The issuance of stock can be viewed as a strategy to remove Chris from running Tricky Technology. This will largely affect the operations of the Company and mutual relation among the shareholders. Being a non-employee Fast has little skills or knows nothing about the Company operations. This approach by Fast is supported by minority of the shareholders. There is no synergy among the shareholders making it more decisive to abandon the decision taken by Fast. Issuance of the stock shares will bring in new shareholders who may not be aware of the Company’s debt hence reducing trust among the current management.
Failure to disclose this kind of information promotes lack of precision hence affecting the reputation of the Company. This will also affect other stakeholders of the Company leading reduced productivity. As the major shareholders, Chris and Fast would be required to resolve their conflicts since divergence would affect the performance of the business.
Conflicts of interest between the two shareholders will affect not only the public image but also the stakeholders of Tricky Technology. The removal of Chris will affect the objectives of the Company. This may lead to more losses and bad reputation of the Company. Chris’s replacement will lead to growth of politics within the business environment hence leading to decreased trust among the Company stakeholders.
Solutions to the Ethical Dilemma
Bankruptcy of the Tricky Technology will extremely affect the stakeholders and public image of the Company. Being the founder of the Company, Chris should ensure that conflicts of interest are resolved in order to promote coordination. Chris and Fast should determine the best strategy to get the additional capital. This will promote stability of the Company leadership consequently increasing performance.
The decision to issue the Company’s share stock will highly affect the current stakeholders of the Company. This is mainly because the new shareholders may develop new policies and regulations affecting the previous relationship. For example, the removal of the current CEO will affect the relation of the organization and the community in which it operates. New changes especially at the executive level of an organization mainly affect the organization culture. As a result, the financial performance of the organization and employee productivity may diminish leading to losses.
Augmented debt held by the Company will lead to losses. Therefore, it is within the responsibility of the CEO to determine the sources of funding that will have less impact on the stakeholders. The issuance of bonds will enable the current shareholders to maintain their shareholding in the Company stocks. This strategy will maintain the current leadership hence reducing resistance to new changes. Since the conflicts of interest between the two major shareholders revolve around control of the Company, they should resolve through division of power. This will enable the shareholders to have control of the Company and share ideas that may fundamental for growth of the Company.
The CEO has an obligation of incorporating other shareholders of the Company in decision making. This will promote sharing of decisions among the shareholders hence choosing the one decided by majority. Coordination of the two shareholders towards resolution of the current debt obligation held by the Company will reduce resistance. This alternative will be the best in solving the current crisis given the fact that transparency is fundamental in an organization setting.
Conclusion
Conflict resolution among the top leadership is fundamental in order to promote good reputation of the Company. Coordination between the top management promotes trust and positive attitude among the employees. Since decisions made by the CEO of Tricky Technologies will affect the stakeholders of the Company it is important to incorporate them in decision making. To resolve the current ethical dilemma at Trick Technology it is important for the main shareholders to coordinate. Coordination can be derived through power sharing hence increasing responsibility of the organizations operations.