Ethics and Islamic Values in Business

Introduction

The case study is based on the crash of the Costa Concordia in January 2012 off the coast of Tuscany, Italy. The captain of Costa Concordia abandoned the ship before all people were evacuated, and this is against the ethical and moral obligations for their professions (Stakeholders and Corporate Social Responsibility, 65). According to the Safety of Life at Sea (SOLAS), the captain of a sinking ship should always be the last one to leave the ship. However, this was not the case with Captain Francesco Schettino, who left the Costa Concordia and there were still people on board. The actions are unethical as the captain absconded his duties to save his life whole, leaving other people on board. The captain’s actions resulted in the death of 32 people, which is haram as Islam upholds human life’s sanctity and purity (Werbner, 2018). The report will focus on the background information that will help shed light on the case study’s primary issues. The report will also link the case study to a particular ethical issue and assess it using Islamic perspectives to help provide a better context on why it was unethical for the captain to abandon the ship. The report will conclude by answering the case study’s questions to explain its ethical issues better.

Background

Costa Concordia wrecked off the coast of Tuscany, and Captain Francesco Schettino abandoned the ship when some people and crew were still on board. The case study explains how the Coast Guard came and helped save people’s lives on board, which was the captain’s responsibility. The captain of any ship is always responsible for the lives on board and must ensure they protect the passengers and the crew (Fiaschi et al., 2017). In cases of danger, the captain has to ensure that the people on board get to safety if possible and should be the last person to alight it. Captain Francesco Schettino was not at his station when the Coast Guard tried to contact him, and he did not know how many people had lost their lives (Bartolucci et al., 2021). The crash caused confusion on the ship, and the crew members tried to get people on the lifeboats from Costa Concordia to save their lives. By the time the coast guard came to save people from the ship, the captain had already left his station. The Coast Guard Commander had to give Captain Francesco orders to get back on the Costa Concordia to ensure that everyone was safe.

It was unethical for the captain to abandon the ship when rescue operations were still ongoing, and the ship had not fully submerged. Captain Francesco abandoned his duties and roles during a continuing crisis and this is unethical and absconding duty. According to the SOLAS, the captain of a sinking ship should always be the last one to leave. The captains of ships are responsible for the lives of the people. When the captains fail to perform their duties, especially during such emergencies, they fail in their profession, and they deserve to be punished (Fiaschi et al., 2017). In cases of such crashes, the captain is expected to know how many lives have been lost and account for every passenger and crew member on the ship. Captain Francesco was supposed to be on the ship to help with the rescue efforts and guide the crew members ensuring that everyone got off the Costa Concordia. Islamic ethical laws state that leaders should always be held accountable for their actions (Werbner, 2018). The laws state that leaders deserve punishment for failing to follow laws, becoming unjust, or fail to meet the public’s responsibilities.

Connection Between Case Study and Ethical Issues

Professional ethics is a key factor for any profession in the world as people working in that discipline must observe it all time. Some ethics are universal for all occupations globally, while others are specific to a particular profession. Captain Francesco Schettino failed to observe some of these ethical principles that are in line with his career. He abandoned the Costa Concordia, which had lives and bodies of the victims from the crash, to save his life. Two of the main ethical principles that Captain Francesco broke are; adherence to the law and doing good while avoiding to harm others (Fiaschi et al., 2017). The captain was unethical because he broke the SOLAS rules, and failing to follow the ethical principle of adherence to the law. SOLAS guides the actions of sea captains and crew members at sea, especially during such a crisis. According to Stark and Hoffmann (2019), the captain was unethical since he did not adhere to Western and Islamic ethical values by standing by the passengers and crew when they needed him. The captain absconded his duties and endangered lives at the Costa Concordia while failing to account for others.

The case study of the Costa Concordia is an example of unethical conduct by the ship’s captain, who is required by law to account for people’s lives. Professionals should always seek to adhere to the ethical principles that guide their professions always. The case study gives a good example of how failing to follow some of these ethical procedures can result in legal action. Captain Francesco Schettino was sentenced to 16 years one month in prison for breaking the law, manslaughter, and environmental damages. The court also ordered that the captain pay a fine of $34000 in damages to every passenger on the ship (Stakeholders and Corporate Social Responsibility, 65). The captain failed to remain in his station and broke some of the main ethical procedures, such as following the law, which would have made sure he accounted for every passenger before he alighted the ship. According to Stark and Hoffmann (2019), the captain failed to follow ethical procedures, and it resulted in legal action, which he could have avoided if he adhered to those principles. The case study has helped the report expound on the ethical issues regarding professionalism.

Questions and Answers

Which stakeholder(s) did the captain of Costa Concordia consider, based on the alleged actions described?

Captain Francesco Schettino escaped from the Costa Concordia using a boat without counting the number of people dead on the ship. Therefore, according to the case study, the main stakeholder that the captain considered was himself. The case study states that it appears the crew were responsible for evacuating the ship without any mention of the captain helping with the efforts. Captain Francesco considered himself the primary stakeholder, and it is why he was among the first people to escape from the ship (Corazza et al., 2020). People died from the crash, and the captain responsible for their lives was not present. It is sinful as Islam teaches that people have to be there and bid goodbye to those who are departing from life (Bartolucci et al., 2021). The Italian Coast Guard Commander had to command Captain Francesco Schettino to get back on the Coast Concordia and help the crew members with the rescue efforts.

How were the different stakeholders affected by this disaster?

Different stakeholders were highly affected by the disaster in which the Costa Concordia crashed off the coast of Italy. One of the stakeholders affected is the Costa Concordia crew members as their duties shifted from catering to the passengers to saving their lives. The crew members of the ship were tasked with the responsibility of saving the lives of the passengers who were left on board (Ruponen et al., 2019). The captain had abandoned the crew members, and they lacked the guidance to offer the best support they could to the ensure that everyone got to safety. The crew members watched as their source of livelihood was affected by the crash of the ship (Bartolucci et al., 2021). The captain also left them to communicate with Coast Guard and inform the latter of the dead bodies on board the vessel that was supposed to be their captain’s responsibility.

The passengers of Costa Concordia are another key stakeholder who was affected by the disaster. The passengers were the most affected in the ship’s crash as 32 of them lost their lives while 64 others were injured. Costa Concordia had carried 4200 passengers on board who were affected by the crash of the ship (Stakeholders and Corporate Social Responsibility, 65). Most of the passengers left their belongings on the ship as they rushed to save their lives and evacuate from Costa Concordia. The passengers were also severely affected as the vessel’s captain abandoned them when the former needed him most (Corazza et al., 2020). The passengers are the people responsible for keeping the business of Carnival Corporation afloat. In every business globally, customers are among the essential stakeholders, and they should always be protected at all times.

The Italian governments, both local and national, are also stakeholders in the disaster that happened. The crash of Costa Concordia affected the surrounding environment of Tuscany, such as marine life. The court ordered both Captain Francesco Schettino and Costa Crociere, a division of Carnival Corporation, to pay the governments millions of dollars in damages to destroy the environment. The Italian government is also responsible for its citizens and businesses operating in its territories either on land or water. The Italian government also sent its Coast Guard to help rescue and evacuation operations from the scene of the disaster (Corazza et al., 2020). The Italian government is a key stakeholder, so the trials from the catastrophe happened in Italy. Costa Concordia crashed off the coast of Tuscany, a region of Italy, and this proves that the Italian government was a key stakeholder of the crisis.

Carnival Corporation is another key stakeholder of the disaster in which Costa Concordia crashed off the coast of Tuscany. Costa Concordia is the property of Carnival Corporation, a Miami based company with operations across several countries. According to Stakeholders and Corporate Social Responsibility, 65), when the ship crashed in Italy, the Carnival Corporation’s stock priced dipped by 20 percent as a result. The Carnival Corporation brand was affected by the crash of the ship, which also affected its trading on the stock exchange. The court also ordered a Costa Crociere, a division of Carnival Corporation, to pay each passenger $34000 (Stakeholders and Corporate Social Responsibility, 65). Carnival Corporation took the responsibility for the crash. It was ordered to pay the governments of Italy, both local and national, millions of euros for the destruction of the environment.

What role should Carnival Corporation have in resolving the needs of the various stakeholders impacted by this disaster?

Carnival Corporation should invest in ensuring that it resolves the needs of the different stakeholders who have been affected by the crash. Some of the stakeholders who have been affected by the crash are the passengers, crew members, the Italian governments. The company should ensure that it has catered for the crew members’ livelihoods who are often forgotten in such cases. The crew members should be paid damages for losing their property and being in such a situation where they are forced to save the lives of passengers without their captain (Corazza et al., 2020). Those who are not willing to go back to work for the company should be paid send-off packages to cater to their needs. Carnival Corporation should also ensure that all crew members are retained in their jobs and transferred to other ships.

Carnival Corporation should also pay damages to the passengers and ensure that it covers the customers’ needs. Customers should be paid for losing their luggage in the ship during the crash. Carnival Corporation should also offer the customers a reimbursement for the costs they incurred to purchase the tickets and the cost of flight and bus travels. The company should also pay for the passengers’ travel expenses back to their homes or where Costa Concordia picked them. Carnival Corporation should also pay for all medical costs that arose from the disaster of the crash. Carnival Corporation should also be in discussion with Italy’s governments, especially the national one to solve the environmental problem that the ship caused in its waters (Corazza et al., 2020). The ship affected the environment off the coast of Tuscany from the crash and the company should be responsible for those losses. Carnival Corporation should negotiate a better settlement package with these governments to ensure that they are responsible for their actions.

Analysis and Recommendation

Analysis

Captain Francesco Schettino could have avoided jail time and heavy fines if he had not left his station as the ship captain. The captain of Costa Concordia considered himself the primary stakeholder, which is the main reason he only saved himself. The captain’s selfishness is heavily frowned upon and discouraged in Islam because it causes people to be inconsiderate to others (Werbner, 2018). The captain left his station when he felt he was in danger, which threatened passengers and the crew’s lives. One of the factors that the captain did not consider is that he needed to save the main stakeholders, the passengers, who are crucial to the operation’s business. Carnival Corporation runs the business to attract passengers, and Captain Francesco failed to ensure they reached safety. Thirty-two lives were lost because of the ignorant and selfish actions of a single person. Islam preaches people should always help those in need, and Allah would assist the former (Werbner, 2018). The actions of one person, Captain Francesco, severely affected other stakeholders especially the shareholders.

Recommendation

Companies such as Carnival Corporation should invest in their ships’ captains by training them to handle crises. Adequate training should involve drills that will help the captain and the crew handle such difficult situations better. Cruiser ship companies should also conduct background checks on their crew and captains to ensure they have competent people in their teams. Companies such as Carnival Corporation should always ensure the ship has an assistant captain who intervenes when the captain is not available. Such factors will ensure that the ship would avoid crises where their captain takes action and ensures they get the passengers and crew to safety. Carnival Corporation should also pay for insurance for such crises as this will help the company reduce the losses of investment. The insurance policy should cover the passengers and crew members when they are onboard the ship. These are some of the key recommendations that the report proposes to Carnival Corporation to deal with similar crises.

Conclusion

Professional ethics is a key feature for any profession globally, and all people should adhere to ethical principles. The case study has given an example of an employee, Captain Francesco, who failed to observe professional ethics and was responsible for the damages and the crash of the ship. There are several professional ethics, and some are universal such as following the law and ensuring that you do not harm any person. The crash of Costa Concordia affected several stakeholders such as the passengers of the ship, the crew, the government of Italy, Carnival Corporation, which owns the ship. However, Captain Francesco Schettino considered himself as the primary stakeholder as he rushed to save himself while leaving the crew members to evacuate the passengers. The crash affected several stakeholders, and the report recommends ways in which Carnival Corporation can take part in resolving the needs of the various stakeholders. One of the key lessons from the case study is that a person should always have ethical principles as they will help solve many issues. Captain Francesco absconded his duty, which led him to face legal action, which he could have avoided if he followed the SOLAS.

References

Bartolucci, A., Casareale, C., & Drury, J. (2021). Cooperative and competitive behaviour among passengers during the Costa Concordia disaster. Safety Science, 134, 105055. Web.

Corazza, L., Truant, E., Scagnelli, S. D., & Mio, C. (2020). Sustainability reporting after the Costa Concordia disaster: A multi-theory study on legitimacy, impression management and image restoration. Accounting, Auditing & Accountability Journal, 33(8). Web.

Fiaschi, A., Matassoni, L., Lotti, A., & Saccorotti, G. (2017). Micro-seismic monitoring after the shipwreck of the Costa Concordia at Giglio Island (Italy). Acta Geophysica, 65(5), 1019-1027. Web.

Ruponen, P., Pennanen, P., & Manderbacka, T. (2019). On the alternative approaches to stability analysis in decision support for damaged passenger ships. WMU Journal of Maritime Affairs, 18(3), 477-494. Web.

Stakeholders and Corporate Social Responsibility (p. 65).

Stark, L., & Hoffmann, A. L. (2019). Data is the new what? Popular metaphors & professional ethics in emerging data culture. Journal of Cultural Analytics. Web.

Werbner, P. (2018). Between Islamic piety, agency and ethical leadership: Paradoxes of self-transformation. Contemporary levant, 3(1), 79-90. Web.

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