Assurance of Learning - Ethics Green Move - Assignment Example

Green Move Firm PART A: Your Employment at Green Move Question A A1. In regard to the approach I would give in the correction of the defective Zero Pedal products, I would conduct a thorough research to validate the assertions by Doug. Through this research, I will be able to have facts to present to the table to discuss with the CEO as well as other board members on the effective strategy that should be employed to rectify the problem. It is unethical to continue producing and to proceed with the launch of Zero Pedal Bike if it is a fact that they pose such serious risks to the users. The exceeding speed way up the 15m.p.h as was expected is unacceptable. I will conduct the cost-benefit analysis prior to the meeting so as to weed out the possibility of Robert trashing the findings based on incompleteness as he did to my predecessor. In light of the relevant facts gathered, I will cleverly face the management of the firm and explain to them that it would be more profitable and beneficial to rectify the defects and raise the price of the products to cater for the marginal costs incurred in weeding out the defects. In addition I will assure the firm that my intensions are long term and hence showcase that it would be a setback to the firm to continue and launch the product as currently constituted as this may attract legal court battles should such defects cause accidents to the people. Despite the fact that the product is not rated as gas powered, and hence attract less and/or no regulations by the National Highway Traffic Safety Administration (NHTSA), ethical issues that circumvents the operation of the firm need to be upheld. As the three partners are proponents of the fundamental of capitalism that attaches societal benefits to free markets, I will use this principle to persuade the management in a professional manner without being tagged a derailing factor to the expansion and growth of the firm. This evidenced-based model will help me convince the management to adopt my report to proactively rectify the defect before they are finally launched and distributed to the market. In addition, I will showcase that ability of our firm to have a competitive advantage over other market participants will lead to positive economies of scale and hence thriving in a competitive market. Attracting and retaining customers is significant for the success and long term existence of a firm. I will therefore showcase that the company will be dealt a blow if the defective Zero Pedal Bikes are launched and their problems immediately noted by the users which will scare away the customer besides defaming the firm’s reputation. In this case, the firm stands to lose the invested funds and hence a blow to the firm which may make the firm written off by the potential customers. A2. Before proceeding with the payment of the special 5000 dollars, I will seek to determine the cost-benefit analysis of this action. In addition, I will have to review the legal and ethical constraints behind this strategy. Where it is realized from these analysis that the payment will have positive packages and has no legal constraints, I will recommend that the firm pays for the special payment since the firm’s accruals from this actions are quite promising. Placing the Zero Pedal Bikes into the sporting shelves will attract more customers as compared to the initial word of mouth form of advertisement that has been employed by the firm that has minimized the sales due to low coverage. In business settings, there is need to issue such incentives so as to be well positioned ahead of your employees. Besides such special benefits act as motivational strategies to their receivers and hence helping the business to prosper. The only prerequisite that need to be determined is based on the cost-effectiveness, legal and ethical issues. Where these are all positive, the business has no option but to pay for the special offer to increase its market power and penetration which the culminates in increased sales volume and hence increased profitability and growth making the firm to realize its objective of profit maximization based on a minimized cost. A3. Despite the fact that the product may have been in a latent stage, ethical issues and legal issues remain uncompromised in business operations. A firm is required to highly uphold the ethical issues even in cased where the legal constraints may be inapplicable as in the case of non-regulation of the non-gas powered products such as the Zero Pedal Bikes. In this case, the cost benefit analysis may not necessary apply since it is a common knowledge that the firm stands to benefit more when these defective products are finally launched. The righteous strategy to be upheld in this case is that the firm should showcase a higher degree of honesty by upholding ethical standards. The firm has no strings attached with respect to legal constraints as the product is not rated gas-powered and hence the NHSTA has no oversight over their production. Despite the risks that the firm launching day will be derailed as well as increased marginal cost attached to ramification of the defects, the firm needs to understand that the ultimate consumers of the products’ interest should be first upheld. The firm thus will have no option but to rectify the defective areas so as to make these products adaptable and safer to every climatic conditions and these will culminate to expansion of the firms globally to other relevant market niches. PART B. Supply Chain Question B B1. Robert needs to ensure that their firm does not breach the contract with respect to the Solar Group. As provided for in their contact with the Solar Group Factory that the Green Move will not engage with the Solar Group based on the fairly treatment of employees as well as the non-child labor. Robert first step before reacting to the blogger should justify the bloggers assertions by visiting the Solar Group Factory and check the state of affairs. The firm is solely dependent on the Solar Group as the main supplier of the Solar panels used in the production of the Zero Pedal Bikes. Terminating the contract with the Solar Group has a grievous challenges to the continuous operations of the Green Move Firm. It is so tricky in for the Green Move to continue its operation based on the termination of this contract. The laws applicable in Bangladesh with respect to whatever is viewed as illegal and unethical by the US based business practices are in contradiction. Bangladesh laws allow for these practices- child labor and low pay packages to the employees. It is therefore upon the CEO to design a proper strategy to face and solve this challenge as the Green Move firm’s interest is solely at stake based on the looming disturbance to its supply chain. On the hand, the failure by the CEO to meet the demands by the blogger has overarching negative effects on the Green Move reputation. This is because, the blogger if the blogger posts the video footage and advance his assertion of the firm being used as segragative institution to exploit the foreigners, will immediately defame the Green Move’s brands leading to loss of both prospective and loyal customers. The result of this problem is loss of sales and market power and hence accumulation of inventories which then translates into low production and hence loss of profits. It is therefore effective that possible cost-benefit analysis be proactively conducted by the CEO with respect to both blogger and Solar Group’s constraints in order to professionally face these two challenges. Despite the fact that unethical issues appear to be practiced in Bangladesh as revealed by Akash with respect to salaries as employees are dissatisfied and plans for strikes, the payment in Bangladesh are provided for by their laws and even pay more than the average packages as provided for in their labor laws. Mr. Robert therefore should face the blogger with these facts and make him realize that contrasting laws in Bangladesh and US is misinformed. B2. The CEO needs to have a proper understanding of the labor laws in Bangladesh and US. As it is noted that in Bangladesh, children are allowed to be employed which is not acceptable to US labor laws, these standards forms key with respect to the decision Robert will make. Another set of standards should be with respect to the average wage that is applicable in the two countries. From the readings, there is a variation in average wage rates with Bangladesh labor laws providing for lower average wage as compared to US. In the light of this, direct contrast of US average wage as does by the blogger is uncalled for. Contrary to what the blogger asserts, Robert knows that the Solar Group Factory pays more than the average wages provided for in the Bangladesh labor laws. Therefore, before Robert acts upon these conditions with respect to salary packages, Robert may have very little to offer. The only problem that he might help the Solar Group Factory alter is the work conditions with respect to workplace state of affairs. He should advice the Solar Group Factory to ensure the dim light is weeded out so as to motivate workers which will translates into increased productivity which is also influential in the maintenance of their supply chain with respect to the production of Zero Pedal Bikes. B3. Letting the blogger to proceed with his uncalled for defamation of the firm has overarching effects to the success of the Green Move firm. Marketing of the firm is determined with the image of a particular firm with respect to how people perceive it in contrast to its competitors. Therefore, the information that is to be advanced by this blogger based on the shocking video footage of how filthy the Solar Group mistreat their internal customers will have a disturbance to supply chain of the Green Move Firm. Both potential and loyal customers to the firm will be scared if they listen to the blogger’s revelation that will only serve to defame the firm. Therefore Robert should proactively counteract this through explaining to the blogger on the variation of the labor laws between the two countries and at the same time try the much he can to persuade the Solar Group Factory to ensure they keep their words as outlined in the contract to rescue the factory from the looming negative loss of its image. Part C Question C C1. Viktor should place the bid on the property lease. This is because, the firm stands to benefit through an expansive market power or share. Expanding globally will help the firm to benefit from the reduced cost of producing and distributing these products from a single area. Besides the reduced cost of distribution, the firm also stand to benefit from the increased demand and hence increased sales that will facilitate the production and hence increased profitability alongside growth of the firm. The firm will also benefit from the low cost of production based on the existence of underemployment and unemployment in Russia and hence will increase productivity at lower wages. However, the Green Move Firm needs to further consult on the need to include both payment based on the cost benefit analysis, legality as well as ethical standards. In a fairly bid, it would be unethical for the firm to include the envelope tagged, “Facilitation” this is rated bribery or corruption. Only one envelope should be included alongside the quoted bid. This will make the firm uphold both legal and ethical requirements during the procurements. Should the firm go further to pay for the facilitation fee and misses the bid, it would be a setback to the firm based on loss of funds. C2. Green Move Firm should expand its production in Russia. As revealed, the site identified by Viktor makes it feasible for the expansion globally. The firm stands to benefit from adequate labor supply from underemployed and unemployed population which will accept low wages but increased productivity. Outsourcing will therefore be curtailed and hence a reduction in labor costs associated with outsourcing. In addition, new markets will be penetrated leading to increased sales facilitating production and hence more revenues accrued. PART: The Board and Remedial Measures Question D D1. The organizational issues that led to the breeches by the Green Move is with respect to the leadership structure and/or organizational structure. The design employed in which the owners of the firm served both in the management and board of directors was misinformed. This led to problems in the management as the firm did not appear as a separate entity from the owners. This gave a loopholes as each three owners of the firm made their separate decision on based on self-evaluation. On the hand, the ability to allow many of Robert’s relatives to invest in the business with no control gave Robert more powers in the firm’s affairs and hence could not let the employees to be product and to act ethically and legally based on the professionalism. This can be seem based on unlawful firing of the previous marketing manager. D2. There are possibility of the residual risks such as the illegality in which the marketing employee was fired. The production of the defective Zero Pedal Bike intentional shows a higher degree of unethical business practices driven by negligence. This can attract a court battles should the defective products cause the accidents despite the fact that it is not a gas powered device. In addition, the payment of the special $5000 to acquire the placement of the product into sporting shelves is both illegal and unethical and should this be revealed, can lead to courts since this is an unfair completion which is unlawful. In addition, the procession by Viktor to include the facilitation fee is a breech the laws of contracts (Scientific American 1990). This indicates that the lease property manager used his undue influence to obtain money. With respect to the Green Move firm, Viktor breached the law by paying bribery to acquire the property and thus trashing the meaning of the competitive bidding. D3. The board should alter the organizational structure through separating the management of the firm from the directors (owners). The firm should employ managers and employees and let the issues of management and operations be left for these employees with full delegation of authority. With respect to the Solar Group Factory, the firm should ensure the contract is upheld or look for another firm with better conditions for its workers and pay packages. About the short term, the firm should rectify the defective products before distributing them. D4. The government should include the non-gas powered machines within the NHSTA regulation. In doing so, the Zero Pedal will meet the design requirement and hence will not produce defective products to the consumers. This strategy will ensure that the Zero Pedal Bikes produced will be adoptable and safe for any climatic condition. Work Cited Scientific American. New York: Scientific American, 1900. Print. Read More