Introduction

Business operations have increased chances of engaging in unethical practices with the objective of increasing the profits levels. Such cases infringe on the rights/ interest of the stakeholders and also trigger harmful effects such as environmental degradation. While not all ethics are enforceable by the law, they are critical in counting negative impacts on the community, customers and other stakeholders. Through the application of moral theories, virtues and ethics, there are increased chances of fostering the well being of all stakeholders.

In the past, many businesses have expressed their commitment to adopt green and sustainable business models. The paper is based on two case studies that feature some ethical dilemma. While there is the need to maximize the profit levels, it also becomes evident that there is an equal need to protect the environment and the customers. In the first case study, there is the use of unethical methods of advertising products as they create terror and fear. The case indicates that there is none consideration to the plight of the vulnerable population.

In the second case, there is the ethical dilemma of maintaining improved market performance while; equally offering durable and safe products. The production of products with a shorty useful; life is seen as leading to an increase in the level of toxic wastes. The paper will highlight ways of dealing with ethical dilemmas effectively.

Case Study One

In this case study, the security intends to adopt a powerful advertising method that will fear among the elderly population thus prompting them to acquire the products and services. The advert can be defined as being inclined on the need to maximize revenues levels but fails to evaluate the negative implication of the approach. It is worth noting that creating fear and terror may equally trigger mental conditions such as depression and stress. It is not always the case that a moral issue refers to the choice between wrong and right. In some cases, it may entail a conflict between values, duties or obligations. The business can demonstrate virtue ethics by applying Aristotle’s ethical rule of thumb.

In some cases, many businesses employ the concept of Pareto optimality as a way of justifying none adherence to ethical values. Pareto optimality addresses the limitations that come with different reasoning patterns. Under this principle, the management may argue that strict adherence to values may have adverse impacts on the revenue levels. In the marketing department, there is the risk that they may blindly follow the policies made by the management without consideration of the implications. The making of unethical decisions by instinctively following the executive is defined as gut instinct. An example is the Milligram experiment.

Under the concept of categorical imperatives, Immanuel Kant asserts that there is a need for people to act in a manner that the maxim of their actions has the potential of becoming a universal law. It implies that actions that are derived from ethical principles are universally accepted and have the benefit of improving the well being of the concerned parties.  The categorical imperative stresses the need to treat people as ends in themselves as opposed to viewing them as a means to an end. The argument is based on the view that all human beings have inherent worth thus the need to be treated ethically.

Jeremy Bentham expounds on ethical ideas of utilitarianism, by explaining that “the greatest good of the greatest number is the foundation of morals and legislation”. Bentham idea is this based on the need to create the highest ration of good to harm. According to the rule of utilitarianism as explained by Brandt, business activities need to follow rules that if upheld would lead to the betterment of the society members. It can thus be used in coming up with ways that the organization needs can be attained without affecting the plight of the seniors. It is vital to come with advert approach that communicates the products and services of the organization without instilling fear on the audiences.

The ethical rule thumb of utilitarian is never to engage in an action that does not necessarily lead to the general good of the society. If the level of harm is greater than the good, there is the need to abandon such activities. The listed case can be better understood by the application of the Aristotle’s Nicomachean Ethics (384-322 BC) which explains that virtues have the effect of positively guiding one’s actions. An example is the use of the golden mean which calls for a balance between two possible extremes. Aristotle gives the example of courage which he defines as being the balance between cowardice and rashness.

On the other hand, focusing on Carroll’s Pyramid of CSR indicates that business ventures must consider different factors.  Some of the elements that relate to the outlined case include philanthropic responsibilities and ethical responsibilities. Under the charitable responsibilities, Carroll focuses on the importance of supporting community initiatives and working with vulnerable groups. Other than just focusing on the profit levels, a business must be committed to improving the well being of the society members by contributing resources and other incentives that lead to an improved quality of life.

There is similar stress on the ethical responsibilities of a business to the community. Under this concept, there is an emphasis on ethical actions and policies. It can be defined as being the obligation to be fair and avoid actions that cause harm to other community members. The approach taken by the business in the listed case study has the effect of creating harm and fear among the elderly population. In extreme cases, such a trend can trigger stress, emotional and mental problems thus complicating their quality of life. While not all ethical responsibilities are enforceable by the law, there is the need to act in the best interest of other parties.

The listed model is a deviation from the ideas put across by Friedman who explains that the central objective of any firm is maximizing the profit levels. However, Freeman and other scholars contradict this view and argue that profit only needs to be a mean to an end as opposed to being the end. Under this argument, the managers must thus remain committed to their stakeholders as opposed to just focusing on the revenues levels. In this case, the elderly population serves as part of the organization’s stakeholder and must be put into consideration before the creation of any advertisements.

The ethical course of action that needs to be taken by the organization is changing the content of the advert. There are different ways that they can influence the decision of the target audiences without instilling terror and fear. An example is using adverts that seek to focus on ways that the product can improve the quality of life of the members. The organization need to illustrate its determination to address the needs of the group in an ethical manner. Other than just offering the services, the organization need to be on the leading front in highlighting ways that the society members can contribute to the advancements of the needs of the members.

There is a similar need to ensure that there are constant communications with the stakeholders. The benefit of regular interactions with the customers is that the organization will be an improved position to understand their needs. Currently, the approach adopted by the business has the effect of training its public image as it indicates non-commitment to the values. The adoption of the listed recommendation will ensure that the interest of all the stakeholders is upheld. It will lead to the attainment of the financial objectives while also ensuring that the elderly population is treated in an ethical manner.

The concept of planned obsolescence entails the making of products that come with a limited life. The limited useful life implies that the customers would be required to buy the product on a regular basis. The managers ensure that the products become unfashionable or obsolete within a short period. The trend implies that there are increased levels of dumping thus leading to adverse impacts on the environment. In the listed case study, it is evident that there is the dumping of toxic substances on the environment. In a normal setting, it is expected that business operations would be keen on monitoring the impacts of their activities on the environment.

The ethical dilemma, in this case, is creating a balance between the need to earn high revenues while also taking care of the environment. Revenues levels under the current model can only be sustained through a continuation of the production processes. However, this would imply that cases of environmental degradation will continue to be rampant and create many challenges for society members. Increased levels of pollution trigger a loss of biodiversity and also create other health hazards. Currently, the management of the organization can be defined as only being keen on maximizing profits but fails to address other needs. There is also the risk that the increased extraction of the raw materials would lead to extinction.

Business ethics strives to ensure that there is adequate management of business operations in a manner that there are no extreme impacts on the stakeholders. It concerns itself with the management of ethical problems related to policies, programs and practices. Ethics management entails the outlined of the code of ethics, risk analysis and management. Each business activity is subjected to a cost-benefit analysis where the impacts are closely monitored. On the other hand, codes of ethics refer to the voluntary values or statements that regulate business operations. An example is industry codes of ethics that seeks negative impacts in a specific environment.

Although there is the view that the code of ethics triggers lack of flexibility among the employees, they are effective in regulating the impacts on the environment. It further maximizes the participation of the employees and the management in all key operations. In the listed case study, there is the need to adopt the balanced scorecard approach. It ensures that none of the critical areas is sidelined. It ensures that there is the smooth translation of the vision statement into operational goals. Other than stating the commitment to safeguard the environment, there is an emphasis on techniques that will lead to the attainment of the objective.

It is expected that business operations will be based on values that ensure that there is ethical decision making. In the outlined case, it may be argued that the concerned business does not stick to business values. There is a lack of consideration of the health risks that are linked with the dumping of toxic wastes. The management is not committed to caring for and protecting the welfare of its members. The short useful life of the products further implies that the customers are deprived value of their money. It is critical to point out that society is concerned about business ethics. Loss of biodiversity and other environmental issues are likely to affect the quality of life of the society members.

Corporate social responsibility requires that businesses ventures be committed to transforming society. It ensures that there is close working between the management and the society members. CSR is anchored on concepts such as sustainable business operations. A sustainable business model has the benefit of focusing on the economic, environmental and social issues. The adoption of sustainable business operations is regarded as being one of the ways that the environment can be protected. There is a stress on the need to minimize the extraction of raw materials and wastage. Focusing on the business model adopted in the case study indicates that it is contrary to CSR.

Through the adoption of green designs, there are increased chances that the adverse impacts on the environment would be addressed. According to the ideas put across by Kant, managers and leaders have the moral duty of protecting other people. There is the call to have consistent moral values such as categorical imperative where the actions maximize the welfare of all people. The management should thus refrain from activities that may cause suffering to some members of the community. Numerous studies have linked the dumping of toxic wastes to the prevalence of health condition such as cancer.

One of the recommendations that may be used to address the issues in the listed case is to ensure that there is the adoption of better technologies and production processes. The adoption of efficient production processes implies that there is the ability to lower the cost of production. Reduced operational cost will translate to a high-profit margin thus securing the financial needs of the group. On the other hand, the technologies would see a significant reduction in the levels of wastes. The current raw materials can be used to produce more goods and ensure that there is adherence to the set regulations.

The other recommendation is the development of better and durable products. Improving the quality of the products may create a platform also to increase the price of the products. In any purchase decision, the consumers are keen on the quality of the products. Moreover, there is a growing awareness of the quality of goods and the impacts on the environment. Under this concept, consumers tend to shun products that have adverse impacts on the environment. It implies that the current model may be unattainable in the long run period. The offering of quality products will offer the customers improved value of their money thus cementing the relationship with the organization.

It is also vital to take part in community initiatives that are aimed at conserving the environment. The past model by the business has had the effect of ruining the environment there are huge volumes of toxic materials that need to be cleared. One of the benefits linked with taking part in communal activities is that they shape the public image. An improved public image will have the effect of translating to more customers. In short, there is the need to ethical and ensure that there is smooth relation with all stakeholders. The organizational culture further needs to be based on values such as integrity, honesty and commitment.

Conclusion

From the listed case studies, it is evident that there is a need to incorporate ethics and moral theories in the running of an organization. In most cases, there is the risk of only focusing on the revenues levels and sidelining others. Nonetheless, ethics management calls for improved standards of accountability as well as taking care of the environment. Two case studies indicate that there is the need for a business to be conscious of the impacts its operations have on the stakeholders. While some practices are not enforceable by the law, there is part of the corporate social responsibility and leads to the welling of all the stakeholders.

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