Thinking Critically About Ethical Issues - Term Paper Example

Ethics Ethics For business organizations, ethics are essential in ensuring the persistence of going concern and profitability. In the long-run the business with well grounding ethics will thrive through all types of environments. This paper looks at three options that TK may consider in ensuring that its ethical practices are not contravened. Option A has many ethical issues that will be difficult to result if the Company chooses to adopt it. Splitting the firm into two, means that the old plant will continue to operate, yet it is being associated with causing cancer among the employees due to the hazardous emissions. The firm will be unethical on their part especially to the employees and the Environment they operate in. If many patients working under the old plant have already been diagnosed with Cancer, the firm cannot risk continuing with the operations knowing the health implications involved. Even if a cleanup occurs, it is not a guarantee that the scenario will occur again due to the plant being old. Option B, on the contrary, is also unethical because it will expose the workers from Liberia at a serious health risk, not to mention the negative effects on the community. Paying employees’ low wages because of the country they come from is unethical. Employees should not be shown favoritism due to their nationality or ethnicity. The strategy by the firm to cut on labor costs at an expense of the workers in Liberia is very unethical. The firm opting to use Low-tech methods that would cause a health risk to the workers and the community because of toxic hazards released to the Environment is against the Environmental principle of managing toxic wastes. , From an Ethical point of view Option C, can work as the best option among the three options that TK Company has now. Now the Government is offering low interest rates on their financial facilities, thus the firm could resort to take a loan at a low interest rate and use it to improve their new facilities. Facing out the old facilities is ethical on TK’s part because it will reduce the chances of more employees being exposed to cancer infections. In addition, the mechanism they are using to reduce the workforce is very ethical, because no employee will be laid off in an inhumane manner, but has a chance to receive their pension, in addition to all the other retirement benefits. Even though the debt liabilities will rise, the firm can manage it well in the future after the operation at the new facility picks up (Vincent, 2011). Ethical treatment of Employees Vincent asserts that, every organization, including TK has ethical rules and guidelines, which they refer to as ‘code of ethics’ that they have to abide to when handling their employees. The third option, allows TK an opportunity to provide employees with better working conditions through maintenance of safety standards and safe and clean working Environment. If the firm continues with operation in the old plant, it will be risking the life of its employees, because medical reports have shown that a certain cancer type associated with the TK processes has diagnosed some employees. The new plant, however meets the safety requirements and working conditions of employees, thus the need to close the old plant and allow employees to work in the new plant that is safe (2011). The issue of labor costs is also crucial, with TK management faced with an option to keep the labor costs low by shifting their operations to Liberia, where they have a chance to pay low wages. They will, however, expose the workers to unsafe working Environments, therefore the ‘code of Ethics’ requires them to go for an option of totally closing the old plant and encourage early retirement on some employees where they are assured of their retirement benefits as well as their pension. By paying the retiring employees their pension and other benefits, the firm will be honoring its benefit provision. TK has an Ethical responsibility to ensure that they pay all benefits they offered their workers including pension. In addition, it will be very unethical for the firm to terminate their workers jobs just because they are having financial issues. The employees deserve an ethical send-off that will not harm their immediate family members or even expose them to unnecessary stresses. The firm therefore should develop a program that will ensure the employees are treated with dignity and honor when they leave the Company (Vincent, 2011). Meeting Environmental obligations According to Vincent (2011), TK has an ‘extended producer responsibility’ (EPR) to manage their waste management. According to the strategy, the firm will be in a position to integrate in an ethical way, the environmental costs they incur into the marketing prices for their products. The firm has a moral obligation to reduce negative effects on the environment of the processes they use to produce their products. The firm is held responsible for the whole life cycle of their processes, including recycling processes. The concept is applicable to the TK Corporation because even though closing the old firm can prove costly, the process can help reduce the negative effect the old plant is having to both the environment and the employees. The Environmental principle requires the Organization in collaboration with Halo fund to comply with all the regulations and rules that relate to the Environmental protection measures required by states and countries of operation, so as to guard the lives of the communities they operate in including the employees. TK already has some policies and procedures put in place to reduce the negative environmental impact on society, obligations they failed to adhere to when their old facility is known to have caused cancer infections to many of the employees working in the organization. According to the Environmental principle, the organizations should ensure that they utilize sustainable energy, reduce on air emissions, reduce water pollution and avoid emission of harmful waste and hazardous materials in communities they operate. Ethical considerations require firms to conserve the natural resources produced around the globe and from the beginning of their operations, they agreed to maintain environmental integrity of their facilities and manufacturing processes, during all times and all places where they have operations. The firm is therefore supposed to align their general goals and objectives with the International Environmental obligations (Vincent, 2011). In order to operate on Ethical grounds, TK together with Halo Foundation has an obligation to ensure that they comply with the Environmental principle, which supports important rules and regulations in various countries of operation. The firm has an obligation to abide by the Legal Rules of Canada that require them to abide to their legal rules. The firm has to use management systems and operations that will minimize use of wasteful and hazardous materials, which will either minimize emission of many wastes or encourage recycling. The firm also has a responsibility of continuing to improve their Environmental obligations by setting up rules goals and objectives then measure how far they have achieved them, and which steps to follow in order to reduce the shortfall. Ethical Issues in maximizing profits AS much as TK, must aim at making profits, there is need to grow the profits in an ethical manner. Given the scenario now, the firm may be tempted to focus on profit maximization at an expense of the employees and Environmental obligations. If the firm choose to continue operating the old plant by either shifting operations in Liberia, where they can access cheap labor and reduce on their safety standards, the public will lose trust in the organization a reputation Halo foundation entails to keep, because it supports Environmental principle. The third option of closing the old plant and getting finance from Government may prove hectic and very complicated to TK, because it will take a very long time for the firm to feel any tangible positive effects. On the other hand, the firm will be in a position to protect their employees from the old plant, by not terminating their contracts in unfair manner. It is very unethical for TK to fail to honor their obligation by paying all employee benefits including pension (Vincent, 2011). According to Vincent, TK’s production process has an environmental impact, thus the importance for the firm to avoid unethical environmental practices that will increase pollution to the Environment. The firm has an option of shifting to the new plant that has excellent technological advancement that can ensure safe working Environment, both for the workers and the community they operate (2011). The cost of production includes highest expenses that TK has to deal with. By continuing to operate in the old plant that lacks the technological capacity, the firm will have entered into unethical business practices. It will in turn damage the firm’s reputation and integrity, which will slow their growth and reduce revenues. The firm can choose to close the old plant and concentrate on the new plant that has the technological capacity to improve quality in the production process. References Vincent, R. (2011). ‘Thinking Critically About Ethical Issues’. 2nd edition, New York: Harvard University Press. Read More