Tutorial 3- Chapter 2: Social Responsibility and Ethics
Tutorial Activity 1: Ongoing Semester Case Study- Businessville Hotel The hotel manager should not acquire furniture from the furniture dealer even though he was a friend of his brother. Looking at the economic perspective, the manager might want to acquire the furniture from the dealer with the cost saving purpose as he was given a discount for the furniture. However, the manager should accomplish his duties legally while complied with his own ethical principles. In the first place, it is important to consider that the source of the furniture is unknown. No additional information was being disclosed when the manager was pleased to ask his brother. Therefore, a question of whether the supplier is dependable arose. It is an obvious paradigm of unethical act that the information of furniture promoted was not disclosed to the other party (Grandgenett and Derelian 2010, 1104). The dealer as a persuader was unethically tried to hide the source of supply and yet emphasized that the furniture were of good quality. Hence, the manager was unethical if he accepted the offer because he was supporting an unethical act. Additionally, the manager should not buy the unidentified furniture due to the legal issues. Since the dealer is his brother, there would be a conflict of interest occur. Logically, it is pretty difficult to purchase quality- products with low cost only in the case that the source of the products are suspicious. Likewise, the furniture could be a result of smuggling or backdoor selling. Also, there might be under table activities and bribery issues between the dealer and his friend from another country. In country like Uganda, the businessmen believe that in certain aspects of the business, they have to do offer some “facilitation payments” to complete a deal (The Economist 2002). Consequently, the manager might violate the legislation and the hotel’s policies if he decided to purchase the furniture. Tutorial Activity 2:
Inevitably, business needs to adjust to fit into the social needs seeing that each country has diverse cultures. Meeting the society’s expectation ensures political stability. Generally, the social demands in developing countries such as Thailand and Vietnam are high. Medical care and transportation sector are thriving. Therefore, satisfying their social needs would bring convenience to the people living in urban area as well as improving their living standards. From political standpoint, business should reinforce their corporate governance to increase transparency. Transparency prevents corruptions and fosters the bonds between the government and community (Lauby 2009). It creates a harmonious society. For an instance, Starbucks subsidized a CARE project to aid community in Huehuetenango that were affected badly by civil war (Starbucks and Care 2012).
Tutorial Activity 3: Facilitation Case Study
1. The challenges faced by apparel companies are linked to the human rights issues particularly their workers’ rights. It is found that companies including Nike’s South Asian plants were engaged in the workers abusive treatment cases. For an instance, Nike’s workers are being exploited in the workplace and also the wages. Though corporate reports frankly describe the problems that workers face, it still leaves challenge to companies for finding equilibrium between profit and people. 2. For Nike, “consumers are not rewarding us for investments in improved social performance in supply chains” most probably suggested that the efforts Nike injects into doing CSR are not appreciated by consumers. Apparently, Nike conveys a message that being more humane to its workers comes at a cost; regarding improving working conditions and increasing salary. However, these actions will not be noticed by the consumers and also would not be charged on the consumers. Nike is in turn less profitable after improving social performance. 3. Industry open- system approach...
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