Adverse Environmental Effects - Essay Example

Sustainable Management Futures Scenario Introduction After a thorough analysis of the given problem, the researcher found that the manager at BASF was faced with an economic and moral dilemma; whether or not to build the factory at Beaufort in South Carolina. BASF officials were aware of the fact that they would have to dump chemical by-products into the local Collection River, which would massively affect the environmental conditions therein. In addition to that, Beaufort County is home to an internationally acclaimed resort area called Hilton Head and owing to scenic beauty, it attracted several visitors annually. Hence, there was considerable opposition from developers of the resort as the scenic splendour would be hampered. Also, adverse environmental effects would lead to water pollution, which is another concern. The water pollution would result in loss of business for the fishermen in that area. Theory and Application The company can adopt the policy of maximum pollution, which can be evaded under the law of South Carolina, in order to maximise the company’s revenues as well as create adequate job opportunities in the concerned area. Then again, this policy will affect aesthetic quality of the environment and hamper business of the resorts in Hilton Head by way of attracting lesser visitors (Taylor, 2011). Long-term effects of pollution are very hard to determine and BASF’s past experiences in other countries, where they had polluted rivers, did not help them with a buoyant feeling. As a result, development of the factory had become more of a moral issue than a business one. In order to solve the moral issue, the researcher proposes that the BASF’s manager had three options. He can either build the factory with the least pollution control or maximise the pollution control or further still, he can choose to not build the factory at all. The first option will yield a tolerable amount of water pollution, huge company profits, satisfied shareholders and extremely antagonistic resort developers as well as greater employment opportunities. The second option, on the other hand, would yield low profits for the company, unsatisfied shareholders, minimal pollution, welcoming developers and high costs incurred so as to implement pollution control measures. The third option would have approval of the developers, yield no profits, incur costs so as to search for a new location and also disappoint the local residents who were in support of the industrialisation. The best course of action in such a case would be to weigh all the options, analyse the environment and organisational benefits and come up with the best possible or optimal solution that would benefit all. Both the manager and the company were confronted with a number of duties and obligations. The organisation management must provide the stakeholders with economic benefits and protect their interests and rights. There was also a situation, where the residents were entitled to pure drinking water and clean air. Furthermore, the resort developers should not be unnecessarily harmed and put out of business. Hence, the researcher presents the options that are available to the manager from an economic as well as moral point of view. Each approach is different from the other. While the first one focuses on the concept of decisions being taken based on consequences, the second one is based on the concept of duties and moral obligations and further still, the third option considers virtue based ethics, implying that the decisions taken are based on the person’s nature and character (Friedman, 2007). The first and third concepts are reflections of classical ethical theories related to philosophy, each stated by a famous philosopher. The first option for the manager can be termed as consequentialist ethics and the third can be categorised under virtue based ethics. Consequentialist Theory The consequentialist theory focuses on the consequences of human action. The actions are evaluated on the basis of the extent to which they are able to achieve the desired results. This theory is also known as teleological (Braithwaite and Pettit, 1990; Hooker, 2000). This is a term derived from the Greek word telos, which means an ultimate aim or purpose. Hence, it is quite evident from the name that as per this theory, ideas of right or wrong are subordinate to the ultimate result or the aim to be achieved (Swanton, 2003). There are two subcategories of Consequentialism. The first one is known as ethical egoism, which is advocated by only a small number of consequentialists (Tanner, Medin and Iliev, 2008). This theory takes into consideration the acts or consequences of an action, among all other alternatives, that benefits the person the most. The action that yields the highest benefits to a person is considered as the right action and the one that mostly harms the person is categorised as a wrong action (Portmore, 2001). The second subcategory is the most followed version and is known as Utilitarianism. The action that maximises not only personal gains, but also the societal ones, thereby implying that an action that ensures overall good from the viewpoint of entire human community is the right action. Hence, the principle of utility proposes that an action that strikes the right balance between pleasure, happiness and unhappiness against all other alternatives is the right action. Virtue based Ethics This theory is based on the nature and characteristics related to a particular human being and that his/her actions and decisions are based on typical human characteristics. It assumes that all human beings have inherent capacities that form grounds for the ethical claims. The actions taken by a person are evaluated against abilities of the actions to encourage or hamper his/her inherent capacities. A very famous proponent of this theory was the Greek philosopher, Aristotle, who proposed that every human being is born with certain inherent capacities that facilitate mental development and that every being aims for self-actualisation (Yu, 2013). Abraham Maslow, who is well-known for his theory on hierarchy of needs, defined Self-actualisation as “"What a man can be, he must be. This need we may call self-actualization. It refers to the desire for self-fulfilment, namely, to the tendency for him to become actualized in what he is potentially. This tendency might be phrased as the desire to become more and more what one is, to become everything that one is capable of becoming." (Maslow, 1954, p. 93). Aristotle proposed that a person is naturally oriented towards actualisation of their implicit potentials. Development of the mental, social and moral potential is of greater importance than that of the physical potential (Wilson, 2012). Hence, Aristotle presents a very optimistic view, where a person is naturally born with good potential and a bad person is merely a case where one is unable to perform according to his/her inborn capacities (Engberg-Pedersen, 1983). Consequently, the researcher establishes that this theory emphasises on the nature of a person. Adequate understanding pertaining to nature and characteristics will be the key determinant of whether a person’s decision is right or wrong, which is a perspective based answer. Moral virtue, implying the control over one’s desires in a rational manner, is also a major part of Aristotle’s theory (Sullivan and Pecorino, 2002). He proposes that in a case where there is a choice available between two actions, the person’s choice between the right action or the harmful one is the determinant of the person’s nature implying whether he prefers moral virtues over economic and other personal gains or not. In criticism of this theory, a well-known psycho-analyst, Sigmund Freud, had asserted that all humans are basically selfish and self-centred by nature and the fulfilment and maximisation of personal gains is the driving force behind all human actions (Freud, 2003). Conclusion The manager of BASF was faced with a moral dilemma whether to build the factory or not. After critically analysing the above mentioned theories, the researcher finds that the manager should take a rational decision and opt for the second option where he builds the factory with maximum pollution control. This option, in short run, reduces the company’s profits and irks the shareholders. However, they are also able to create jobs for several individuals. In an age of industrialisation where even the government is in favour of the factory being built, if BASF pulls out, then there will be other companies to fill the gap who might not have the moral obligation to reduce pollution or maintain harmony of the place. In long run, the company will realise the benefits from economies of scale and can earn back the profits that they invested while implementing pollution control measures. Scenario 4: Introduction Different countries have different set of cultures, which vary widely in their business ethics and values. The growth of business in one country might be seen as a primary factor; however, in another country, it might be subordinate to achieving other goals such as, establishment of a good culture, development of the personality of a person and leisure. In the present world, as more and more organisations are developing connections with other global partners, a multinational company is often confronted with cultural differences between countries (Bryman and Bell, 2011). Theory and Application Cultural tradition differs from one country to another and a company in order to operate in several countries needs to adapt to the cultural traditions therein (Kohls and Buller, 1994). Ethical issues occur due to the conflicts arising from the differences between an individual’s personal and moral philosophies and the company’s values and work culture. In order to solve these conflicts in a successful manner, the management has to set up suitable organisational ethical concepts, principles and standards. These must be appropriately applied so as to correctly predict the outcomes and resolve the critical situations efficiently (De George, 2011). Ethics According to Spence and Van Heekeren (2005), ethics can be defined as a collection of prescriptive principles, rules, values and virtues of a personality that guide interpersonal and intrapersonal behaviour, implying the behaviour of individuals towards themselves as well as each other. Ferrell and Fraedrich (1997) expressed that ethical issues are problems or opportunities that require a management of an organization to choose between a number of actions that must be evaluated as right or wrong. According to Gini (2004), ethics is the assessment and appraisal of principles and values as all of one’s existence is value-laden. Contingency Approach The contingency approach is a concept of management. The idea is based on a theory that there is more than one way to manage and resolve issues in an organisation and the management should be adequately flexible to adapt to cultural differences and resolve issues, as and when they arise. The planning, organising, leading and controlling must be customized to the present problem that a company faces. Hence, an approach that might have worked in a particular situation may not be helpful in another. Dynamism is necessary in any organisation and pre-determined solutions would not be apt in every situation as complexity related to various critical environmental and internal contingencies appears to vary. Management theorists such as, Fayol and Taylor, identified and stressed on the principles of management that they perceived would enhance organisational success. However, these classical management theorists were criticised in the 1950s and 1960s by neo-classical management theorists, who believed that the former’s approach was very stringent and inflexible and did not consider environmental and cultural contingencies. Although these criticisms were largely misplaced as both Fayol and Taylor acknowledged that situational factors were significant, these neo-classical management theorists had initiated a thought school that is known as the contingency school of management. Research conducted in the 1960s and 1970s had stressed on situational factors that affected the suitable composition of organizations and the appropriate leadership styles for different situations. There has been very little improvement in contingency approaches, besides that of organization theory and leadership theory, even though the contingency perspective purports to be relevant to all aspects of management and not merely leading and organizing. Cross-country cultural differences while conducting business It is not just cultural differences that a company has to deal with, but there also arises the problem of gender issues. In countries where women do not have equal rights as men, problems within the management often surface (Trevino, 1992). The work culture prevalent in one country might not be suitable in another. The company might have to reconsider before sending a women employee on outdoor or on-field jobs. Also, certain Muslim countries require their women to wear particular clothing that covers their body and face. Thus, if the company has particular dress code for all employees, it might require relaxing he rules while trading in a Muslim country and employing Muslim women workers (Ferrell and Fraedrich, 2014). Also, in the developing countries, due to a different mindset and socio-political economic structure, it is difficult for the female workers to work late. A female worker might be ready to work late but owing to safety reasons and other social and cultural taboo, she would have to leave early. Therefore, the company in such cases must understand the cultural differences, respect the cultural values of a place and accordingly take decisions, which would benefit both the company and the workers. The cultural barriers that can pose a problem while conducting cross-country business are: Customs and gestures The basic mannerisms, customs and gestures vary from one country to another. While approaching a client, if a salesperson is aware of the former’s cultural background, then he can adapt the needed body language and mannerisms so as to satisfy the client better. For example, in countries like, India, Japan and China, a typical way of greeting is followed while meeting a person. Thus, apt mannerisms are able to generate an instant feeling of likeness and familiarity between the client and the sales person. Language Barriers In countries such as, Germany and the United States, people speak loudly and in an assertive tone. They also act aggressively while sharing ideas among peers. However, in some countries like, Japan, people are more passive, speak softly and tend to act in a docile manner among peers. In such countries, a loud and aggressive behaviour might be termed as rude. Hence, while dealing with people from a different cultural background, it is advisable to speak in a neutral tone and make a conscious effort to be considerate of others’ feelings and cultural peculiarities. Such efforts will help to foster growth and better business communication. Target Audience It is absolutely necessary to conduct a proper market research and learn about cultural sentiments of the people in a country before introducing a product therein. Levels of conservatism, ideologies and gender views must be deeply explored before launching a campaign so that the latter is in line with cultural ideas and norms of that place. Hurting the public sentiments and incurring their wrath can not only hinder the campaign, but also tarnish the company’s image to a great extent. For example, consumption of alcohol is disliked in many Muslim countries. As a result, a beverage company must thoroughly verify the market, the government regulations and the prevailing sentiment of the country before introducing alcohol therein. Technology In a world of improved technology, people from different countries often conduct business with each other with the help of advanced technology. Business deals are discussed over video conference calls (Parboteeah, Addae and Cullen, 2012)). Then again, one needs to be aware of the time zone difference between the concerned countries and set a reasonable time for the video conference. For instance, the time difference between India and the US is quite considerable. So, before scheduling a conference call, both the parties should be aware and considerate of each other’s convenience. There are also other factors that greatly affect business operations across countries such as, team work. For example, China is a country that believes in a collectivist approach, instead of an individualist one, implying that the Chinese people prefer working in teams and performing tasks that benefit the team as a whole. The United Kingdom, on the other hand, is a country with an individualist approach (Hofstede, 1978). Hence, if a UK company decides to conduct business with the Chinese people, then the management needs to incorporate a sense of teamwork in its work culture. There is also an aspect of cultural difference, known as power distance (Hofstede, 2012). The Chinese people believe in power resting upon the higher authority. Higher power abuse is recorded in China as against the UK, which is a country that believes in equal distribution of power (Minkov and Hofstede, 2011). If a Chinese company wishes to conduct business in the UK, then the management must not be too condescending with the subordinate. A fair sense of power play needs to a part of the Chinese work culture in such a case. Conclusion Organisations that operate on an international level require taking into account contingencies in situations such as, customer diversity, cultural diversity and product diversity. It is quite necessary to understand the cultural beliefs, traditions and values typical to a place so as to easily gauge the consumer behaviours as more often than not people are guided in their decision making by their cultural beliefs. The organisations should adapt their managerial practices and organisational structures and products or services to differing cultural values, expectations and consumer preferences, which will effectively contribute towards facilitating organisational prosperity in international business. Reference List Braithwaite, J. and Pettit, P., 1990. 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