Ethics and Business Essay
Ethics and Business
The chief executive officers of any existing company are liable to meet the expected objectives as layed down by the shareholders of the company. The most significant of all factors of production is manpower basing the fact on the potential manipulation of this factor. All the other factors of production tend to assume a stable status of manipulative capabilities. The ultimate goal of any company is to maximize profits, which is only achievable through a coherent ethical considerations of personnel issues in the company.
The employees of any existing company are hardly the consumers of goods and services of that respective company but rather beneficiaries in terms of wages and benefits. In a situation where the company in located in specific area where the living standard of surrounding community is high, it faces dire danger of satisfying the living requirements of the potential employee. In contrast, the right policy as regards the location of such a company should be towards the less developed area yet laying marketing strategies that would yield successful and profitable disposal of the goods and services, the outcome of products of that company.
Factors that may cause the rise in the cost of production: The appropriate remunerations packages and benefits of the employees is a matter of crucial concern in any company. There exists a direct relationship between the required remuneration packages and benefits for employees and the level of development of the area from which the employees reside. If the company cannot meet the expected standard of living of the employees as dictated by the living level, the morale and motivation of the employees is unachieved.
This may result to poor levels of production and strikes to the extreme negative side (Cory 2004 p 45-49) The nature of the area may also require some stringent measures of safety regulations. These measures may be costly both in terms of time and money. The safety measures, which are internal to a company, raises the production cost of the company. The extra margin is of crucial significance towards uplifting the company’s profits for the benefit for the shareholders (Cory 2004 p57-59)
Environmental regulations have a similar trend of a direct relationship between the location of an enterprise and the environment. An expensive system of waste disposal is required of the company because the environment requires special expensive disposal facilities (Cory 2004 p 67-69) A positive moral decision in relocating the company or retaining the company to the current location is necessary. Moral decision-making Several factors should be considered in the decision making process to come up with a moral and ethical solution.
Finding facts is very crucial which should be followed by an appeal to values. Dealing with moral issues have different approaches. According to Utilitarian Approach, ethical actions qualifies to be moral only when they strike a balance of good over evil (Cory 2004 p 101-104) The greatest good for the greatest number of people is the qualification of an ethical action. The choice of the action is determined by the greatest benefits and the least harm. The effect of each action benefits and harm should be the guide to choice among the various courses of actions available (Cory 2004 p 98-99)
According to the Rights Approach ethical actions are based on the ability of a person to choose what actions are beneficial for their lives while respecting the moral rights of others (Cory 2004 p 102-103) The fairness of justice approach is based on Aristotle’s teachings that “equals should be treated equally and unequals treated unequally” (Cory 2004 p 115-117) Issues of favoritism on one side and discrimination on the other are of crucial importance in the course of action. The Common Good approach explains an ethical action of an individual is being of good and beneficial to the community.
The action should achieve healthcare, public safety, peace, legal justice and clean environment (Cory 2004 p 83-85) For the full development of our humanity we should strive towards certain ideals. This is the ethical framework of the Virtual Approach. Character traits or attitudes inherent in individuals aid the highest potential development. Example of these virtues that help us to pursue our ideals includes honesty, courage, compassion, generosity, fidelity, integrity, fairness, self-control and prudence (Cory 2004 p 77-78)
They become the characteristics of a person once acquired which is crucial to individual action that are consistent with moral principles (Cory 2004 p 64-67) Through the use of the five approaches of dealing with moral problems, the most important ethical considerations are highlighted as a basis for deliberations. Possible relocation areas Mexico: Labour, health, safety and environment factors are favourable in a number of border cities in Mexico. The wages are extremely low, and $ 3 per day compared to $15 per hour in America and this is a cause of employees’ resignations. However, labour turnover is high.
There is also a high toxic chemical exposure tolerance and less strict environmental laws. However, due to high instances of birth defects that raise protest from health groups the plant relocation may be subject to adverse publicity. Cory 2004 p 104-105) Philippines: to the advantage of the company labor costs in Philippines is $1 per day while safety, health and environment regulation are similar to those in Mexico. Opposition against the effects of safety, health and environment hazards such as cancer and birth defects are silent. South Africa: there are positive conditions but less favourable economic terms.
South Africa as compared to Mexico and Philippines. Labour cost is $10 per day and a possible future pressure to increase the package due to the existence of a strong labour union movement. Health and safety measures and exposure to toxic chemicals are fields that have not been ignored. Cory 2004 p 106-107) These are the actual facts concerning the possible relocation sites for Electrocop Company in the US. The facts will require some ethics or morality to come up with a final decision. This involves analysis of any conflict of negative effect to people, animals and environment, institutions and society.
The outcome of the decision to people and the community and any possible stakeholders should also be explored while making consultations to the relevant persons. The final decision should be the one the most good effects to the people and least harm. The rights and dignity of stakeholders should be withheld. Common goodness should be promoted and a full participation community. Society Company or family uplifted. The option of choice should enhance the character development of valued individual, professional or societal traits. All these perspectives are significant in taking the most appropriate option.
Conclusion The chief executive officer of Elecrocorp is exposed to options of relocation in Mexico, Philippines and South Africa from the United States. The current site of operations is a threat to perpetual progress of the plant and faces a close down in the near future. Although it is a major employer, the risk of closure is of no benefit to its employees. In consideration of balance between continued business operations and ethical moral effects of its relocation, South Africa offers the best alternative site to its current site in the US.
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 20 February 2017
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