UK Motors, the largest manufacturer of automobiles in the United Kingdom, has been famous forbuilding reciprocating automobile engines that produce minimal noxious emissions. These so-calledclean engines have generated numerous awards for the use of technology in cleaning up theenvironment for the United Kingdom. A supporter of automobile racing of all types, the company haslong supplied engines built specifically for racing, in particular for NASCAR, Formula 1, and Indy carcompetitions. This year, engineers at UK Motors have produced a racing engine that because of theremoval of emission protection elements costs 46% less than the old engine. Mass production of thenew engine for installation in the automobiles made for the consumer market will save UK Motors nearlya thousand dollars per unit in manufacturing costs. Some members of the management team at UKMotors motivated solely by profit potential want the “new” engine produced and sold immediately.Based on data that constitutes verifiable past performance, it is estimated that in the current sales year,the new engine would be sold in over 3 million vehicles, all of which would reach the market at asubstantially low production cost to the company. Other company stakeholders take the opposite viewand argue that the company would be acting dishonestly by selling the highly profitable “new” enginewithout revealing how much pollution these engines will be producing. This group of companystakeholders is concerned about ethics and deceptive sales practices and opposes any sale of the socalled new engine.How the new project development affects the key stakeholders? Which group of stakeholders shouldprevail: The one that wants to sell the engine now (those motivated solely by profit), or the oneconcerned about ethics, honesty, and company reputation? Why?
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