Tuesday, October 29, 2019

Case study Essay Example | Topics and Well Written Essays - 750 words - 9

Case study - Essay Example This may have been due to the personal relationships he had with them or a more secure way to protect his power. However continental AG did not appreciate this from Gruenberg, they became suspicious and feared he was not on there side, rather more, a traitor. This conflict if seen from continental’sside is a breach of ethical business conduct. Loyalty to ones organization and building trust for those you work for is one of the major stems of business ethics. To cover up and improve relations with Continental AG, Schaeffler offered new concepts and ideas on how they can, together, become more powerful and profitable. Schaeffler needed to satisfy the board of AG to further negotiate as this approval was necessary. Schaeffler made offers to support the continental AG in financial matters, Continental AG did keep negotiations very tight in the beginning and seemed very reluctant, but there sudden offer of shares came as a surprise to everyone. Continental had predicted the downfall of the automobile industry and it was in their interest to offer the shares to Schaeffler, it can be considered as a rather smart move. The new CEO K T Neumann unwisely made a statement which led to dropping in share prices; this announcement was solely made for the personal benefit of his own as he had already begun seeking a position elsewhere. This again can be seen as a breach of business ethics. From the above two examples we can see that people in this organization were merely seeking their own benefit and power. There is no sense of responsibility or morals when it comes to switching sides in business politics. Von Gruenberg, the chairman of the supervisory board, who was initially suspected of favoring the Schaeffler suddenly considers them to lead to a debt burden, this sudden change of attitude is termed as sabotage, as the Schaeffler were no t expecting it. There were various conflicts when it came to choosing

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