Buckeye Engine Company is a leading U.S. producer of diesel engines, with 20,000 employees worldwide, 15,000 at its main facility. Headquartered in a small town in central Ohio, Buckeye has prided itself in its strong corporate reputation of ethics and long-standing commitment of support for its employees and the local community. It has a well-established tradition of ethical standards and a strong corporate culture in which management tries to set policies and make decisions consistent with its primary ethical dictate to "Do no harm" in all its business dealings.

Founded during the 20s, the company has gown steadily over the years, with above average earnings and employee wage scales generous in the industry. Buckeye never experienced an employee lay-off until the recession of the early 80s when it suddenly faced tough foreign competition in its traditional markets. In an attempt to maintain market share, Buckeye reduced the price of its primary diesel engine product 10%, thus forced to slash its production costs as well. Consequently, the company reduced its workforce by 2,000 workers at its main facility in central Ohio. Never experiencing a workforce reduction in its history, the layoff sent shock waves throughout the company. Management pledged that it would make every reasonable effort to recall these laid-off workers as soon as business conditions strengthened.

Three months after the lay-off, Buckeye received a request for a large order of diesel engines from a Third World government. The leader of this Third World country was notorious worldwide for his anti-American sentiments and for his highly questionable, indeed some would say highly reprehensible, pattern of repressive, sometimes violent, actions against citizens of his own country. Some Buckeye sales managers were delighted to receive this large request for it would permit the company to bring back 300 workers for three months. By the end of this period, they hoped, business conditions might improve and these workers might continue their employment, thus reducing the unfortunate hardship forced upon newly unemployed Buckeye workers and honoring management's pledge to return them to work as soon as possible.

Desiring to act in a way consistent with Buckeye's tradition of ethical management, the company's senior vice president of sales instructed the research department to investigate the probable use of the diesel engines should they be sold to the Third World government in order to determine whether the sale would violate the company's commitment to "do no harm." After investigation, it was reported that the engines were most likely destined for use in offensive military vehicles that might, with high probability given the government's recent practices, be used repressively against innocent civilian populations, resulting in probable lose of life.

Buckeye's senior vice president of sales felt himself to be in a real moral dilemma. Should the company accept or refuse the order? What would you urge this senior manager to do?

January 9,1991