Question

Mr. Khalid is dealing with scrap business in Ibri, he used to receive old cars from UAE as scrap which he used to make customized cars by assembling parts from different cars and give cars a new look. Some time he uses defective and low quality parts that are available for cheap price. Keep this in mind to answer the following questions;

a) Do you think Mr. Khalid is doing ethical business? Analyze his business operations.

b) If you purchase a car from Mr. Khalid and later you got to know about his way of doing business what, will be your reaction- explain in detail.

Answer 1

a.

No Khalid is not doing ethical business unless he has clarified or advertised that his customized cars are derived from used cars. Also as per the writeup he has intentionally used faulty parts which is again violating ethics in a business.

His business model is getting cheap source of motor vehicle through his scrap business and value creation by customizing its parts. This model is justifiable if he is accepting what he do morally and legally otherwise what he is doing is not ethical.

b.

It ill be disappointing to know that the purchased car is made up of used and faulty parts. If i found out his model I will be willing to take legal actions for compensations and on ethical grounds.