1. Prioritizing the issues that Butterfly needs to deal with are, that in Puerto Rico suppliers mistreat their workers, retailers in some countries were diluting the products and selling them as full strength, some plant employees were suffering pay cuts while others were not. Employees that have worked at Butterfly for many years were having their hours cut to 36-hour workweeks, losing their full-time benefits. There are also political alliances being formed among marketing, finance, manufacturing, and corporate headquarters. Each plant operates as an independent profit-making entity. Butterfly’s workers tended to be women; children were being left to fend for themselves. In some Latin American countries, husbands were angry because their wives earned more than they did, corporate people at Butterfly are mostly men. I think implementing an ethics program can address these issues by showing all suppliers, employees, even the corporate heads that this company stands for what is right, and they want to bring the company back to core values and good ethics.
I believe for the most part all these issues that Butterfly is suffering are all ethical issues. If everyone in the company, even foreign companies, know that there will be a new ethics committee and that every company will be expected to follow this set of ethical guidelines, will help get this company back on track. Either the companies will follow the new set of ethical guidelines or be penalized, or they may want to close down. Unfortunately, it is more difficult to control foreign companies because our ethics in the United States are completely different.
2. I think that the new ethics committee should have a wide array of people. I think it should have a representative from each continent that has a Butterfly, both men and woman with different areas of expertise. I think the committee’s first steps toward implementing an effective ethics program should be to communicate these new ethical standards. Explain why they are needed and how the company will implement them. Then put a high-level employee in to oversee all aspects of the new ethics program. All companies need to educate and train all employees about the new program. The new ethics program needs to be monitored and there needs to be reporting of all aspects, if something is found, there needs to be proper discipline. I think that there needs to be a way for all employees to respond to any changes being made and let supervisors know.
3. Yes, I believe that the new ethics committee should commission an ethics audit. How would they know if all the companies are conforming to the new ethical program without doing an audit? This will also show them if the others can conform to new ethical standards and if more discipline needs to be implemented. Should the new ethics committee commission an ethics audit? If yes, when should the audit be conducted? If no, why not