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Business Ethics in the of Timberland-City Year - Case Study Example

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This paper "Business Ethics in the Case of Timberland-City Year" focuses on the fact that ethics play a crucial role in the performance of an organization. The organizational workers are required to take into account the ethical considerations in order to work successfully and progressively. …
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Business Ethics in the Case of Timberland-City Year
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Download file to see previous pages The purpose of this study is to focus on the ethical considerations and dilemmas faced by the organization Timberland in terms of its coalition to City-Year and the steps that are taken and should be taken for the solution of those ethical issues.

In the merger of the two organizations, Timberland and City Year, there are many ethical considerations. To develop legal business relationships between Timberland and City Year and to consider the stipulations of the required business laws, the following ethical considerations should be deemed:
  • None of City Year’s earnings should be incurred to any private shareholder or an individual.
  • City Year cannot participate in any political campaign or activities.
  • City Year cannot influence the legislation to favour any of its activities.
  • If City Year is involved within a transaction with another party that leads to excess benefit transaction, such a partner must agree to allow excise duty imposed on it.
  • City Year should not be operated or organized for the benefits of private interests.
  • Timberland should respect and agree with City Year’s explanations and insistence on certain statutory limitations, which the organization as a not-for-profit could not breach.
  • The managerial cooperation between the two entities should be organized in such a way that implementing any changes will not affect City Year’s activities as a community-centred organization.
  • Financial interaction between the two organizations should be properly regulated in order to avoid complication and unfair business practices.
In the light of above-mentioned ethical considerations, Timberland is required to undertake a transaction that would not impose City Year into ethical binds of business operations. Ethical theories are about morals. Among the many theories, two ethical systems stand out. They are the Utilitarian theory and the Deontological theory. Utilitarianism was first propagated by Jeremy Bentham (1789) and John Stuart Mill (1806-1873) who believed in ethics of consequences meaning that an action is good if it produces the greatest good for the greatest number.

In his book Utilitarianism, Mills states that that happiness is not only desirable but the only thing desirable, as an end in itself. For all other desirable things, happiness is a means to that end. This is also referred to as the "Greatest Happiness Principle." There are three main events under this theory. First, all actions must be judged by the consequence of the actions. Secondly, the judgment is about the quantum of happiness these actions have generated. Lastly, each person’s welfare is equally important and actions must be directed to this objective.

Ethically, Swartz has an obligation to his organization and employees to maintain profitability and longevity. The relationship with City Year is secondary to business and one could ask whether there is an ethical obligation to ensure the stability of City Year as well.  ...Download file to see next pagesRead More
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