Summary Larry Shepherd is an Aeronautical Engineer, working for Extraterrestrial Delivery Service (EDS). This company has dealt with a scope of business ventures as listed below: ▪ Private parties looking for opportunities to put up communication satellites

▪ Delivering supplies to the International Space Station

▪ Placing astronomical science instruments into space

Larry’s job the first few years at EDS presented him with several challenges. First, there was a rocket explosion after liftoff, which EDS had responsibility in this venture. The payload was a part of a communication satellite from EDS, and the reputation of EDS has suffered from this, as well as the customer confidence in the company. Upon impact of the explosion, it caused some damage to the environment, nature, and surrounding areas in the community by the release of a small amount of radioactive dust in the air that settled. It was at this time Larry became the key scientist of the investigating team to determine the cause of the explosion, which was due to a faulty manufacturing of a fuel line gasket by Space Engineers LTD. Larry did well on the investigation and received a promotion to a team leader role. He continued to improve in efficiency, cost, and effectiveness of using rockets to deliver private payloads into space. Larry’s work became even more noticeable by the senior staff in the company and he acquired a nickname of “Werner Von Braun,” of the private space industry. Larry now was in line to receive a higher position in the company, including becoming future company President. Sandra Armstrong, Larry’s boss, mentor, and friend requested him to attend a meeting in her office to share some information with him. Sandra tells Larry that the senior staff has selected him to head up the new Hugo Project. Larry at this point is not quite certain about the project, but thinks it does not sound too tough and feels he can handle it. The Hugo Project is based on creating a cost effective way for delivering multiple payloads with one rocket. She then tells him that the first two clients have already been identified, Weather Eye International and Energy First, a Russian company. In addition, both companies are giving help to fund the project. Weather Eye International is funding with cash and Energy First is supplying a new synthetic fuel to power the rocket. The client’s needs are to put a new atmospheric surveillance satellite in orbit and to launch disposable hazardous waste containers into space to rid of spent radioactive fuel rods from Russian nuclear reactors. Facts and ethical issues are: ▪ Project has to be ready and able to launch in six months.

▪ Primary competitor Space-Bots, working on identical project for same company and a second company unknown. ▪ Lead scientist, Jessica Cernan at Space-Bots not happy with company, new contract, not enough money, and no credit given.

▪ Larry told to recruit Jessica to work for EDS, as a tactic to slow down competitor and distract her work.

▪ Pressure from Sandra to Larry no failure by any means.

Larry’s meeting ends with Sandra and he returns to his office to get his team assembled to start working on the project. The details of the project were shared with the team, except for the information about Jessica Cernan. Larry gave out assignments to the team as follows: ▪ First, research the engine system for compatibility with the Russian synthetic fuel.

▪ Second, the data collection is critical regarding the various payloads to carry the rocket.

▪ Third, determine the necessary modifications to the existing rocket.

▪ Fourth, determine critical environmental factors for a successful launch.

▪ Lastly, meet again in two weeks and develop a timeline for the mission accomplished.

Larry now has to deal with the phone call that he receives from Dr. Jessica Cernan, in regards to joining the team. Surprised by the call and at this time unprepared to deal with the issue, he tells her to call him back in two weeks and he will let her know. Now the clock starts to tick and as we proceed in this journey, we will discuss the ethical issues, ethical dilemmas, shareholders, team members, and our recommendation for Larry Shepherd’s decision. Body Larry’s first team, Bob Aldrin and Chris Lovell were assigned to assess the synthetic fuel and engine capability for sending the payload into space for EDS. Two different types of fuel were compared for the Hugo Project, the current hydrogen fuel and the new synthetic fuel as provided by Energy First. The new synthetic fuel provided by Energy First will cost less, will need engine modifications, and fuel tank adjustments. Hydrogen fuel currently is being used at EDS and was found to have a high risk. By using hydrogen, more fuel is being used but outweighs the risk of the synthetic fuel. Less is not always better. The major drawback of the new synthetic fuel is the effect on the environment. When it combusts, large amounts of carbon, sulfur, and anhydrous ammonia are released. The environment will have a high probability of being damaged not only by the combustion caused by the synthetic fuel, but with the release of hazardous waste into the atmosphere from the payload; and at the same time the EPA thresholds need to be met.
Our team resolution is to use the hydrogen fuel in continuation with EPA guidelines.
Hydrogen fuel should be used because: ▪ The results of using this fuel are known ▪ There will not need to be any modifications to the engine ▪ No additional changes to increase the size of the fuel tanks ▪ Any additional repercussions to the environment are less likely ▪ Currently we meet EPA guidelines Andre Chaffee and Matt Grissom’s assignment was to collect critical data regarding the different payloads to be carried by the rocket. The two men felt that there would not be an issue sending the satellites as one payload, but were concerned about the second payload, the radioactive material, affecting the instrumentation on the satellite. Congress is reviewing the idea of passing a bill that would stop U.S. companies from working with foreign companies when nuclear materials are involved as a matter of national security. This should not be an issue of breaking the rules since the bill will not pass until this project is long over with, but the problem is what sort of image does EDS want to put out to the public.
Our team resolution is to find another company to share a rocket with Weather Eye that has a similar payload.
Another company should be used because: ▪ The payload can be sent up next to a atmospheric satellite

▪ The environment will not be harmed

▪ No laws or soon to be made laws will be violated and national security will not be harmed

Marty Crippen and Terry Young’s assignment was to determine the necessary modifications to the existing rocket and decide on what would be the critical environmental factors necessary for a successful launch. Marty and Terry felt that the six-month timeline would be a bad idea because they would be launching the rocket in June, when the desert winds are unpredictable. To get a better understanding of the conditions Terry discussed the project with a friend of his at NASA. NASA is very unhappy with the project and threatened to issue a formal protest to the mission. Finally, Marty and Terry discussed the modifications needed and decided that with the synthetic fuel, wind conditions would be very important because the fuel does not give as much thrust unless expensive and extensive alterations are made. The whole issue concerning the environment could either successfully put the rocket into space or land it right into the backyards of Phoenix or Scottsdale.
Our team resolution is to continue using the hydrogen fuel.
Hydrogen fuel should be used because: ▪ The wind conditions will not be a concern as with the synthetic fuel

▪ There will be no need for NASA to issue a formal protest of the project

Larry Shepherd is now at a crossroads to decide if he should proceed with the Hugo Project or not. Team one, Bob and Chris had to assess the two different types of fuel and reported going forward using the hydrogen fuel. This fuel has been used before and the team knows what the outcome will be. The next team, Andre and Matt had to report if working with a foreign company involving nuclear materials would be problematic to national security or not. In the end, they concluded that it would be in the best interest of EDS, the stakeholders, and the community if they did not pursue a working relationship with Energy First. The last team to give their data was Marty and Terry. Their team had to evaluate the six-month timeline along with weather conditions for the June launch. The final report from their team was to go ahead with the six-month launch plan without any extensive or costly modifications to the rocket. However, Marty voiced his concerns of the idea in pursuing the Hugo Project and expressed to Larry if it goes forward, he is offering his resignation.

Conclusion This case has presented us with so many unethical issues and dilemmas that it is very hard to achieve a win-win outcome. At the present, EDS appears to be operating in an exacting culture by requiring this project completion at any cost in six months, and stating failure is not an option. However, the ideal culture that EDS should be working toward, and existing in is an integrative culture that combines concern for people, performance, and meeting the goals of the organization with high quality. Larry Shepherd has a hard decision to make on several issues, and the outcome of his decisions will affect not only the immediate stakeholders in this case, but society as a whole. Depending on which road Larry chooses to travel, accepting the data his team members have presented, and doing the right thing with it, places him in a position of not meeting the deadline and possibly losing his job. If Larry decides to proceed down the road of completing the project on time, with the knowledge of the risk, failure may occur. Lena Horne once said these words: “That it is not the load that breaks you down, it is the way you carry it.” Larry has to decide in this case, can he face the results of his decision-making and risk the loss of his team member Marty because of it, and then face having to deal with Dr. Jessica Cernan and the deception of hiring her on the team. Only time will tell. Larry does not have time in his favor--the two weeks have ended. Larry could handle this project in a manner that would leave him and his team members with the values, morals, and ethics that they all have at this point, just by doing the job that they have done up to now. Larry could share all the information correctly, good and bad to be able to have an informed decision. As Martin Luther King once said, “The time is always right to do the right thing.” In conclusion, our team recommendation is to continue with the use of the current fuel, seek to find another company to share a rocket with Weather Eye that has similar payload, and not to engage in business with Energy First. In doing this we would continue to work toward creating a cost effective way of delivering multiple payloads with one rocket, maintaining EDS’s reputation, and obeying the EPA laws.

References
Document: BUSN 210 Space Race
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Chapter 2 Stakeholder relationships, social responsibility, and corporate governance. In Business Ethics (8th ed., p. 33-34). Mason, OH: South-Western Cengage Learning.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Chapter 3 Emerging business ethics issues. In Business Ethics (8th ed., p. 60-64). Mason, OH: South-Western Cengage Learning.
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Chapter 7 Organizational factors: the role of ethical culture and relationships. In Business Ethics (8th ed., p. 186). Mason, OH: South-Western Cengage Learning.