Global Communications Ethical Filter Worksheet

Gap Analysis: Global Communications

Technology changes every day and with those changes, should come new ideas and new services and products for each company in the telecommunications market to offer. When companies do not keep updated with the market, they will fall short, stock prices will fall and layoffs will become necessary. Global Communications was once a leader in local, long distance and international telephone markets. Stock prices were trading for $28 per share and over the past three years, have fallen over 50%.

In response, Global's senior leadership team came together and presented the board with a strategy to add new services to its customers by teaming up with a local satellite provider to offer video services and broadband wireless. Global's team also plans to cut costs by outsourcing some of its call centers to India and Ireland. Because Global has been viewed as a company for its people, it must enact all strategies with excellence to ensure the continued integrity of the company.

This Gap Analysis will use course concepts, steps of the problem solving model and facts about the scenario to give ideas on how Global Communications can increase stock prices once again, while keeping employees positive about the future.

Situation Analysis

Issue and Opportunity Identification

Global Communications, previously a leader in the telecommunications industry, has had a decline in stocks of more than 50% over the past three years. This is primarily due to increased competition. Because of the decline in stock prices, Global is considering layoffs in the United States and outsourcing to call centers in India and Ireland. The plan will allow them to cut costs with cheaper labor overseas. Global also plans to team with a satellite provider to provide video and wireless services to its customers. A major issue within the company at this time is with communication. They are known for treating their customers with the motto, "Our Edge is Our People." The Technology Workers Union is not being kept abreast of the situation and this lack of communication on the part of Global could lead to a lawsuit with the union. Creating a communication section in the company's manual could help to regain trust from the union workers and prevent this from happening again. The employees have a right to long-term employment and are a key stakeholder in this scenario.

Outsourcing to India and Ireland will cut Global's cost by almost 40%. However, this will decrease employees because layoffs will take place. Customer loyalty will begin to decrease because language barriers will be problematic.

"Integrative negotiation calls for a progressive win-win strategyÐ'...Telling lies, hiding key facts, and engaging in the other potentially unethical tactics erode trust and goodwill, both vital in win-win negotiations," (Kinicki & Kreitner, 2003, p. 25). Using integrative negotiation, Global would develop a new strategy that includes the union workers on ideas for increasing sales and profits, while cutting costs with minimum layoffs.

Stakeholder Perspectives/Ethical Dilemmas

"Business relationships involve transactions that often lead to choices requiring ethical decisions and, many times, moral courage. Leaders are responsible for the economic success of their enterprises and for the rights of those served inside and outside their boundaries" (Weiss, 2006, p.3). Using good business ethics when developing a strategy that appeals to all stakeholders, is up to the senior leadership team at Global Communications. Stakeholders in this scenario include investors, possibly the most important of stakeholders, union employees and the senior leadership team.

When investors see stock prices declining, they are inclined to react. Since they provided the initial funds to start Global, investors become unhappy when they see their investment unsuccessful. Investors will look to the senior leadership team for answers in increasing revenues and therefore, stock prices. If improvements do not occur, investors will pull even more resources and funding from the company and the company will fall further. The team must find ways to improve profits and negotiate with the union while still cutting costs to the company.

The Global Communications' senior leadership team is vested in the company as career employees and an interest in seeing the company thrive. The majority of the team has been with the company a number of years and these high paying jobs are at stake if the company fails. Therefore, the team will meet to discuss a new strategy to moving to an international marketplace while cutting costs and offering more services to customers. It is in the best interest of the senior leadership team to use well planned negotiation techniques with the union employees while searching for better services and products.

Since employees have already given up 20% of their education and health benefits, they have become truly vested in the company. It is important for them to keep their jobs and this makes the company's strategy to move forward vital to them. Currently, the workers fear losing their jobs to employees overseas after giving many years to the company.

Using good business ethics, the following questions must be asked, "What business are we in? What is our product or service? Who are our customers? What are our core competencies?" (Weiss, 2006, p. 5). These questions may be answered to solve the problem that Global is facing and keep all stakeholders in this scenario involved and knowledgeable of the future of the company.

End-State Vision

Global Communications will team up with successful satellite providers to offer video and wireless services to its customers. They will increase sales and become a major player in the telecommunications market once again. Many of their products will be made by outsourced companies and this will cut costs. Call center layoffs will become less necessary. Once sales are a success, they will give back the 20% in educational and health benefits to employees and regain trust and morale within the company. They can also rehire productive employees from call center areas that have the lowest income level.

Ethics in communication will be the new vision of Global and the company will begin better communication with the Technology Workers Union. The union will always be included in regular company meetings to discuss upcoming technologies and products in addition to issues that may potentially arise that affect employees. After all, according to Weiss, "Career management professionals in 26 countries reported