Central Georgia Technical College Zenefits and Theranos Ethical Issue Analysis
Question Description
Purpose: In this project, you will assess how two start up companies have come under scrutiny for their actions in operating in today’s business environment. How these companies are operating are pushing the limits or have exceeded the limits of what is considered ethical and legal. In completing this project you will have the opportunity to research the two companies, identify stakeholders influenced by the organization’s decisions and develop and evaluate alternatives, recommend solutions to ensure appropriate business practices and accountability occur
Outcomes met by completing this project:
1. identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles
2. develop and evaluate alternatives to, and recommend solutions for, ethical dilemmas, taking into account ethical and legal requirements and the essential mission of the business enterprise
3. effectively communicate to internal and external business stakeholders the complexities of ethical issues, suggesting and analyzing various solutions in order to ensure appropriate business practices and accountability
Instructions
Use the following steps to complete the project. You will demonstrate an understanding of ethical concepts and of legal business principles and are required to use the course material to support the ideas and conclusions presented.
Step 1: Course Material and Research
You are required to research the two companies to provide a company overview, to identify identify the issues and to identify stakeholders. You will be using the course to address the questions and support the ideas, reasoning and conclusions made. Course material use goes beyond defining terms but is used to explain the “˜why and how’ of a situation. Using one or two in-text citations from the course material and then relying on Internet source material will not earn many points on the project. A variety of source material is expected and what is presented must be relevant and applicable to the topic being discussed. Avoid merely making statements but close the loop of the discussion by explaining how something happens or why something happens, which focuses on importance and impact. In closing the loop, you will demonstrate the ability to think clearly and rationally showing an understanding of the logical connections between the ideas presented in a case scenario, the course material and the question(s) being asked.
Step 2: Silicon Valley Startup Companies
Read the following articles about Silicon Valley startup companies (Focus on Theranos and Zenefits ). Each company discussed in the articles listed below eventually came under scrutiny for ethical and/or legal issues.
Griffith, E. (2017, December 16). The other tech bubble. Wired. Retrieved from https://www.wired.com/story/the-other-tech-bubble/
Griffith, E. (2017, December 28). The ugly unethical underside of Silicon Valley. Fortune. Retrieved from http://fortune.com/silicon-valley-startups-fraud-venture-capital/
Hartmans, A. (2018, September 5). The rise and fall of Elizabeth Holmes, who started Theranos when she was 19 and became the world’s youngest female billionaire before it all came crashing down. Business Insider Retrieved from https://www.businessinsider.com/theranos-founder-ceo-elizabeth-holmes-life-story-bio-2018-4
Suddath, C. and Newcomer, E. (2016, May 9). Zenefits was the perfect startup. Then it self-disrupted. Bloomberg. Retrieved from https://www.bloomberg.com/features/2016-zenefits/
Step 3: Overview of Companies
Provide a company overview for Zenefits and Theranos. Describe the purpose(s) for the founding of the company; i.e., what problems was it formed to solve and/or opportunities it was formed to exploit, who are the founders, home country or state, management, etc.
Step 4: Ethical or Legal Issues
You will research each company to establish the facts of each situation. Once you have established the facts surrounding the decisions made by Theranos and Zenefits:
Identify and discuss the ethical issues associated with each company.
Identify and discuss the legal issues associated with each company.
Step 5: Stakeholders
Identify the stakeholders associated with each company and explain the impact of the company’s decisions on the specific stakeholders.
Discuss how the stakeholders reacted to the decision(s) made by each company.
Step 6: Generate Alternatives
From what you have read, the startup culture poses a host of temptations creating a never-ending series of ethical choices and dilemmas. Companies are faced with the challenges of venture investors who expect hyper-growth and quick results. For privately-held companies, self-reporting, unaudited financials is an option as is not reporting, and the media serves to promote an attractive opportunity. Lastly, it is easy to rationalize behav