Based on Schrage’s first scenario, the problem would be: “If the CRM will completed, what would happen to the current employees?” As such, that should be the focus of the CIO. There is still no guarantee that there would be mass layoff, but only a possibility. Therefore, the CIO needs to discuss with its employees the possible scenarios and identify what method of action should be taken for each of the scenarios. One possible scenario is that the mass layoff is inevitable, what would the company do? One solution would be is to assign those who were laid off from their current job to other areas in the company. The CIO might also involve other resource person such as head of another company who has several opened positions. On the second scenario, the problem at hand would be “What are the possible solutions at the problem at hand?” A CIO needs to gather all facts and data without jumping to conclusion or making a haste decision. A meeting must be set up to discuss ideas that could help in solving the problem based on the gathered information. It would be unethical to lie as it would violate the ethical principle of veracity or truth telling. Also, non-disclosure of information could only lead to mistrust between the CIO and its other employees.
2. Discuss the possible short-term losses and long-term gain in implementing ethical solutions for each of Schrage’s scenarios.
Making a decision based on ethical considerations can make or break a company. In the first scenario, a short term loss that could be gained in implementing an ethical solution is financial loss. The company needs to put the welfare of its employees into considerations as such there would be financial expenditure involved. But those losses could be recovered in time. Long term gains would include an increase level of trust and loyalty from its employees