Vulnerable Groups in Business Ethics - Coursework Example

1. List three business problems, situations, or opportunities that you believe are ethical issues. Please give possible solutions and explain your responses in some detail. Targeting vulnerable groups—children, elderly, minorities When targeting vulnerable groups such as children, elderly, or minorities—the major issues that arise has something so do with either selling things these group do not need, but being persuaded to buy by taking advantage of their gullibility. One solution for this is to identify the influencers (those who have influence over the decision-makers in a purchasing decision-making unit) who have the ability to comprehend the perceived risks to the products, and explaining it to these groups in order to make purchase. For example, targeting parents for children’s purchases who can more perceive the risks associated with the purchase decision; targeting younger people who have elderly parents who can explain things to them—would be a more socially responsible manner of selling. This way, while these people can consult people who can influence their decisions in a more thoughtful way, the issue on selling by taking advantage of gullibility can be addressed a bit, if not fully. Tobacco selling in third-world countries Tobacco selling in the third-world countries gives way to ethical issues when companies try to persuade people to buy tobacco products while taking advantage of the illiteracy in these third-world nations. While these products are proven to be dangerous to health of people, because of inadequacy of education in most of the third-world countries, the risks that are associated with the purchase are not fully disclosed—such as addiction due to addictive contents, not to mention hazardous, thus not giving these people a chance to weigh their options in relation to purchase.. While of course, many tobacco companies would definitely not consider the following solutions that I will propose as it will prove definitely contradictory to their interests. Nonetheless, the one thing I could see that could give solution to this is to educate the consumers—educate those consumers of all the risks associated with the purchase of the tobacco products; labels are not enough, and cannot be considered an act of educating already. Once the consumers are already told of the risks to their health, such as the addictive and hazardous substances that are associated with the purchase, but still they choose to pursue and go on buying the product, then the company must have done the things it needs to do, at the very minimum. Of course, as a company it still needs to balance profitability and social responsibility, and still has to sell. But disclosure of the risks will enable consumers to decide as they are given enough information regarding the purchase. Another solution could be raising the price of tobacco products in the country in order to limit the tobacco purchase to those who can afford the medical expenses. While this solution does not resolve the problem fully, this solution protects those people from the third-world countries with low income, as well as children and other young people—by using the price as a screening mechanism for purchase. Taboo topics in marketing communications By promoting certain products, in order to entice the target market, some marketing communications activities stir up taboo topics which offend many. In order to achieve more impact while doing marketing communications, companies sometimes resort to controversial topics to gain publicity and awareness. While promoting one’s product does not need to offend other people, the problem lies in the lack of creativity on the part of other companies, which makes them resort to taboo or the controversial in order to get attention and garner publicity for the activities. One way to solve this issue is to employ more creative talent that can make marketing communication activities with more impact in order to get attention without offending other people. It will get both the impact and the admiration, or positive associations with a very innovative marketing communications campaign—two factors which contribute to building brand equity in the long run. 2. Describe why it is important that business people study business ethics? What are possible benefits to companies, individuals, society and the world of business? Please explain. Relevance of business ethics to business people Business ethics incorporates in every decision-making the interests of all the stakeholders of the business—employees and management, shareholders and investors, suppliers, customers, government, society, pressure groups and trade unions. The interrelatedness of the elements of a society definitely relates to different stakeholders who will be affected by a certain decisions. Therefore, business ethics has never been more relevant to business people than during these times as corporations have constantly been sued due to crossing the lines to further one’s interests without considering the interests of other stakeholders; the power of other stakeholders are increasing such as interest groups for societal concerns in order to ensure fairness, and taking care of the interests of the society as a whole. By ensuring that all the interests are considered, and not one is sacrificed, a more harmonious relationship of an organization with its environment can be sealed in order to ensure survival. Possible benefits of application of business ethics An organization that is liked is more likely to be patronized by people. An organization that is admired will be more likely have its products accepted by the society—these are just some of the benefits of applying business ethics in organizational decision-making. These benefits include: less damage to brand equity; avoidance of costly litigations and lawsuits; less complaints and strikes from pressure groups that result in negative publicity and goodwill to the company; and relationships with various stakeholders are preserved for the sustainability of business and the organization itself. Less damage to brand equity and goodwill. A company that responds while incorporating the interests of various stakeholders will create good associations to a brand, while on the other hand, an organization that acts by furthering one of the stakeholders’ interests at the expense of others would be associated to negative things thus reflecting damages to brand equity. Avoidance of costly litigations and lawsuits. When organizations not only neglect their relationships with other stakeholders but deliberately further one of the stakeholder’s interests at the expense of the others while crossing the legal borders, they are faced with costly litigations and lawsuits. Less complaints and strikes from pressure groups. Apart from lawsuits and costly litigations, there are the complaints and strikes from pressure groups that result in negative publicity and goodwill to the company. This negative publicity dampens the company’s reputation, which results in being liked less, and usually up to the point of being hated by the public. Apart from all these benefits, adopting business ethics in making decisions would keep the relationships with various stakeholders strong in the future. It all boils down to taking care and nurturing these relationships by making decisions that will consider the various interests. These relationships, as well all know will guarantee the success of a business as a whole and its long-term survival. Reference List Bartol, K., Martin, D., Tein, M., & Matthews, G. (2001). Management: A Pacific Rim Focus. Australia: McGraw Hill Company. Ferrell, O. C., Fraedrich, J., Ferrell, L. (2008). Business Ethics; Ethical Decision Making And Cases, 7th ed. Houghton-Mifflin. Robbins, S. (2005). Organizational Behavior. Philippines: McGraw-Hill. Read More