Ethical Business Leaders Decision Tree - Essay Example

Answer Jerry and his partner George are ethically and legally liable for the food poisoning of 7 of their s who had eaten in their restaurant. As owners of the restaurant, once they had come to now that the frozen sausages were contaminated with Salmonella Ohio that had caused the food poisoning, it is ethically wrong to refuse to acknowledge their part. Another major ethical issue is that once they know that their food is contaminated, they cannot continue to serve their customers with such food. The general ethics form the basis of mutual interaction amongst the people in a society. Though some of these values evolve to embrace the changing times and others may interpret it differently under different situation but the universal acceptance of what is right and what is wrong has given them a strong foothold to withstand the adversities of the time. Barring serious acts of omission and commission, it is increasingly becoming difficult for a person to maintain a high level of personal integrity as very often the personal values clash with the organization’s objectives and organization’s target based results. The application of ‘Ethical Business Leader’s Decision Tree’ helps to evaluate the ethical and legal dilemma of the issue at hand. In the contemporary time, the tree helps to evaluate the actions and performance outcome of the business decisions so as to ensure that the companies and business enterprises conform to the wider interests of their various stakeholders. The tree also promotes a sense of corporate social responsibility and relates the ‘standards imposed by law with those mandated as a matter of ethics’ (Ethics, Value Creation and Risk Management). As per the decision tree, the restaurant is bound to safeguard the interests of its customers by providing them with safe and edible food items. The contaminated sausages pose a threat to the well being of the customers and therefore, not only the whole shipment of the contaminated sausages be withdrawn, the seven customers who had fallen sick after eating those sausages, should also be appropriately compensated. The law also makes disclosure necessary under the ‘prevention of deceptive practices’ and Jerry and his partner must disclose that the contaminated sausages have been withdrawn from the restaurant menu. The decision tree has huge implications for all types of actions and business decisions for all stakeholders. The anxiety of George, business partner of Jerry, is also genuine because they have put a huge amount of money into the renovation and image building of their restaurants and bad publicity could ruin their business prospects. The decision tree also provides them with legal relief that they can claim from their suppliers. Jerry and George can claim compensation under contract law. Under the ‘allocate risk’ they can also claim under strict liability of products and doctrine of unconscionability that had resulted in the loss of good will of the restaurant due to contaminated sausages. The adherence to the legal clause indirectly promotes ethical actions and business decisions for the restaurant owners. Jerry and George can now pull out whole of the shipment of the sausages. Their disclosure regarding the contaminated sausages can also turn in their favor, especially when they take the responsibility for the seven people who had suffered food poisoning due to contaminated sausages. (546) Answer 2(i) The fast changing socio economic dynamics have created a fiercely competitive business environment. In the rapidly changing environment of globalization, change is essential for development and organizations tend to adapt to the constantly evolving business environment. ‘The business has to change to thrive in today’s shifting environment’(Strategy, Organization Design and Effectiveness). They implement necessary changes in the organization to not only survive but compete with their rival with confidence. Changing environment of technological advancement has made it imperative for one to evolve new marketing strategy in order to maintain an edge over their rivals. The changing business strategies to cope with the fast transforming socio-economical paradigms of the times have become crucial factors that enable the businesses to compete against their rivals. The external factors are often the major proponents that necessitate organizational changes. Bear There produces customised stuffed bears and sell them at premium prices. In the cutting edge business environment of contemporary times, when the value of dollar has significantly depreciated, the company needs to meet the challenges with creative business strategies and embrace the changing business compulsions with vigour and vitality. The imperatives of the organizational theory call for flexible strategic goals and creative approach to gain a competitive over their rivals. In the deteriorating market conditions, Bear There needs to improve and improvise its business strategy. It needs to diversify its product line and expand business area to effectively meet the demands of the changing times. The falling dollar has created new demand for the bear in UK and France and the new manager is eager to expand its business interests in those countries. It should expand its business area but wait to increase its production for sometime because it is also important to take into consideration the wide ranging external factors that would have significant impact on the business outcome for the company. The company needs to reduce the production cost and increase its profit margin while expanding its business interests across the globe. Hence, it needs to form strategic alliances with offshore business partners. ‘A related trend is to contract out some functions to organizations in other countries or to partner with foreign organizations to gain global advantage’(Organizations and Organizational theory). Answer 2(ii) The external factors necessitate formations and incorporations of management strategies that go beyond the realm of individual company’s concern and interests. The globalization has made the role of such factors, an integral part of broader management strategy which encompasses planning for distinctive competencies along with considerations for wider ramifications of the socio political environment of the place. The business alliances IN UK, France and possibly Asia would help the company to overcome the more complex processes involving intermediate markets, private agreement, economic transactions and exchange of goods. In order for the company to follow a strategic growth plan across the world, it is important that it understands and takes into account the vagaries of anticipated demands for the products by the factors that may or may not conform to market rules and regulations. The challenges of unarticulated elements like the presence of grey market and manipulated demand and supply chain by some vested interests, needs to be met by the innovative strategic methodology of marketing and sale of its mainstream products. Consumers are the mainstay of any business and therefore, efforts must be made to develop better understanding with customers with regard to consumer demands and correlate it with the product so that appropriate market strategy could be developed. In the present market scenario a more aggressive approach to market its goods and services need to be adopted to meet the challenges of the changing time. (605) Reference Ethics, Value Creation and Risk Management. Chapter 1. Organizations and Organizational Theory. Chapter 1. Strategy, Organization Design and Effectiveness. Chapter 2. Read More