Green Move Analysis - Assignment Example

Green Move Question A A After learning that the Zero Pedal has a problem, I will first redress the costs that the company would incur in repairing the defects of the bicycle. Even if this move was the main reason for the dismissal of my predecessor, I would undertake this study with keen caution and thoroughness. Instead of exclusively pointing out these repair costs, I will also look at the projected profits if the product would succeed in gaining loyalty and trust from the consumers. In essence, I would devote myself to convincing Robert, the CEO, of the long term returns that correcting the defects would have on the sales and success of the company in the southern markets. Robert would agree with me since this would be in the best interest of all the investors who in the end aim to make profits and the short term expenditure would be not only a wise choice but a positive investment. However, this move would not be without pressures. One, by undertaking this move, I will be increasing the chances of dismissal the likes of which were taken by my predecessor. Getting fired would be a critical blow to both my personal and professional life given that this is not only my first job but also the primary source of finance for my family. Another pressure would be that by confronting the defect issue, I will be taking a risky gamble. I will be assuming that Robert and the other investors on the board will agree with my point of view. In essence, I will be relying on their objectivity and open mindedness as management and entrepreneurs, a notion that was vividly discouraged through the revelations of Doug. However, I will still take the risk because I believe in confronting challengeshead-on. The problem solving model that I would apply is the 5-step problem solving proposed by an independent study by FEMA in 2012. The step involves the stages of identifying the problem(s), exploring alternatives, selecting an alternative, implementing the solution and finally evaluating the situation (FEMA, 2005). This model would be important in influencing my decision of choosing the best way of tackling the defect issues of the Zero Pedal. The model would be applied very easily to this particular problem. First, I will identify that the problem is that the Zero Pedal would be defective in southern temperature through the analysis of the expert engineer, Doug. Consideration of the problem is key since its addressing might lead to issues with the manager and its neglect will lead to accidents or evendeath. Second, I will explore the alternatives. One alternative would be to neglect the defect and continue to aim for sales in the Sothern America market so as to make the investors happy. Another would be to suggest repairing of the defects through the help of the management. Selecting an alternative would be to choose one of the two by means of survey. Through the evaluation, I have found out that social responsibility is the ethical way to go and so I will choose to advocate for the repair of the defects in Zero Pedal. In implementing the solution I will develop an action plan, the objectives and the resources needed. I will estimate the funds for repair upon approval by the management and allocate the task to the engineers. Finally, I will evaluate the situation through a study with the help of engineers like Doug and they might show that the defects are corrected through the repairs and Zero Pedal would be defect free. This will also free the company’s conscience and would also mean that the product would beof value in the long term. A.2 The buyer who requested for payment is a very peculiar but not random person. I believe that the person requested the special payment because he might be used to requesting payment from many other companies. But I will not allow him to tarnish the image of Green Move so early in its operation. Basically, I will not pay the special fee of 5000 Dollars in order to gain his loyalty as a buyer. Hypothetically, I would have considered paying the fee if the buyer promised to order a massive shipment of our bikes for sale through his store. If paying him would lead to better sales and profits and would consequently show my success in supplying a lot of bikes and getting more shares, I would shake his hand. However, I would ethically consider regulations of the government and those of the company which I believe would direct me otherwise. Such favors for the act of supply are unethical. The payment of the 5000 dollars is both illegal and unethical as the term would not be special payment but a bribe. Paying the bribe would start an ‘evil’ trend for Green Move. In an article on CBS, Bill George, HarvardBusiness School Professor argues against ethical situations that lead to bribes. He expresses that by doing this, the company will not only be hurt when this is found out by competitors and the public but will also be hugely unethical (CBS, ). As an employee of Green Move, I would hate to put my company at such a position and hence I will defer from paying the fee. A.3 The problem is that the defects are in the latency stage and this means that the effects of the bikes are known but have not yet occurred. The problems are in essence, waiting to erupt. In my opinion, Green Move should not use this method as it’s bound to lead to a dire breach of ethics. Alfred Marshall defined the Cost-Benefit Analysis as the difference between the value of money in the benefits to the costs that would be incurred (Arthur, p. 25). A comparison between the financial costs and the benefits would be inconsiderate to the progress of Green Move. As a company, Green Move has the obligation of ensuring the safety of its products and as a result, using this analysis might prove to be a blow as the situation with my predecessor proved. The risks of using this method are that the management might opt to overlook the safety concerns of the product. Given the origin of Green Move, the management is made up of the three primary investors/ entrepreneurs. They will therefore not be objective in case the analysis favors the cost side by being higher than the benefits. This will lead to a decision that prefers the overlooking of the safety concerns and going into business the way the Zero Pedal currently is. This will not only lead to the avoidance of expenditure in the short term but will also tarnish the companys reputation and its employees in the future. I am also one of them and so young in my career, I would not wish to jeopardize myself. Questions B B. 1 After finding out about the conditions at Solar Group, Robert needs to re-examine the terms of agreement with the company as their fates are intertwined. It is true that outsourcing to Bangladesh was a good move for Green Move. First, it meant cheap labor and this is translated to more profits. Second, it created jobs and improved the reputation of Green Move as a ‘responsible company.’ however, armed with this new revelation, Robert needs to meet with the board of Solar Group so as to address this new concerns because if Solar Group garners a negative reputation, this would be reflected on Green Move. However, Robert should not terminate the current agreement. At least, he should exhaust all the necessary channels before finally pulling the plug. Terminating the agreement would be a crucial blow to Green Move since the solar panels produced by Solar Group form a very important element of the structure of the Zero Pedal bicycle. Through the contract, Green Move was able to produce the successful and competitive product in Zero Pedal and her success is owed to the partnership with Sola Group. In this scenario, terminating the agreement would mean that Green Move would be risking going out of production and this would disappoint many buyers and would lead to losses. Also, avoiding the termination of the contract might lead to the damaging of the reputation of Green Move and its success would be at stake. However, this use of child labor goes against Bangladesh government regulations and American principles of Freedom and Protection of the child and he should consider terminating the contract using this premise. B.2 Robert needs to tackle this issue with dire consideration of the conditions set by the International Trade Union Confederation (ITUC) and the International Labor Organization (ILO). He should not only know but also he should understand the conditions that are set for operation by the government of Bangladesh. Since the contract specifically stated that the employment of children was distasteful, this should be adhered to. Recently, Bangladesh reviewed its trade policies. In the report that was tabled to the WTO in 2012, children rights have been addressed. The Bangladesh Labor Act has set the minimum age for working children at 14 although those from 12-14 years can perform light tasks that are not ‘hazardous’ (Internationally Recognized Core Labor Standards in Bangladesh, p.10). In essence, Robert should consider such government regulations in Bangladesh while making this critical administrative decision. This would clear him from any conflicts or sues from human right activists and the workers in Bangladesh. Also, Robert should also consider working regulations set by the United States authorities since as a partner company, Solar Group is in some way answerable to American standards. He should partner with trade unions in Bangladesh to find out the optimal working conditions and advice Solar Group to either adhere with these conditions or to lose the contract. B.3 The blog will have both positive and negative impacts on the reputation of Green Move. The positive include name recognition would go up and global reputation will be gained. On the downside, however, the blog may challenge the Public Relations Department of Green Move which will try to mop up the mess created and which will threaten losses. The brand of Green Move will be positively affected by the blog as more people will come to know of the social responsibilities carried out by the company; creating virtual employment for America. The blog would also popularize the company as many news outlets would carry stories about the company. The downside would be that the revelation would damage the name of the company in the sensitive American market. American consumers are concerned with the reputation of companies they associate themselves with and would be displeased to learn of the evil practices that surround the production of Zero Pedal. This would be basically a nightmare for the PR guys. Question C C.1 Viktor should not participate in the bid for the property lease. This is because, even though the property appears truly desirable, it comes with ‘too many strings attached’ that might later raise ‘red-flags’. Legally, he will have broken the regulations on leasing. Even in Russia, the issuance of the facilitation fee is bound be called a legal offence. Also, giving money through the ‘facilitation’ envelope is likely to place the company in the offence through the committal of corporate crime. This would lead to fines or even the prosecution of Green Move’s management. Ethically, if bidding for the property requires the issuance of the ‘facilitation fee’, it would be unprofessional both for the company and to competitors as it creates an unfair advantage. If the company goes ahead to win the bid, Green Move would end up over-spending on the property which is not the only choice available in the market. Also, if the company beats other competitors through the secret ‘facilitation’, this may lead to curiosity and questions followed by investigations that might lead to the revelation of the company’s ‘ill’ ways and a subsequent poor reputation. C.2 Green Move should not outsource its operations to Russia. The first reason is because the decision has been influenced by the sole opinion just one board member, Viktor. The lack of involvement of the other board members raises questions since a business decision is not an emotional one but a critical and analytical one. The fact that Viktor is of Russian descent and the move is to Russia needs to be evaluated critically for validity. Secondly, outsourcing would create a myriad of problems for Green Move including the loss of a competitive edge, the lack of liability and would also lead to the loss of morale by both employers and the public. In order to succeed in America, Green Move needs to have most of its operations locally like McDonalds. Taking the operation to Russia might lose some suppliers and consumers. Also, even though the move might lead to cheaper costs, it may also slacken the response in case of emergencies and might also lead to loss of confidential data. Moving to Russia will mean that other companies might be involved and Green Move will lose its edge -of authenticity- as some data may be lost in the meantime. Moving would also affect the morale of many workers who will be disappointed by the move and this will in the long term affect response and the timely solving of IT problems which might be sabotaged. This would be the case sincethe employees in Russia have no interaction with the local systems and employees. Questions D D.1 The organizational issues that may have led to the ethical and legal breaches at Green Move may include: the lack of cooperation, lack of trust, lack of personal/ professional responsibility and lack of good consultation and ethical guidelines. I would have breached the conditions by my loose professional conduct by bowing to the pressure and paying the 5000 Dollars. Robert’s lack of professional responsibility would lead to continued cooperation with the Solar Group while conducting ethical slaughter. The company would also lack in ethical adherence of conducts of practice and the effect would have been the payment of the ‘facilitation envelope’. The lack of trust of the management from me as an employee would also lead to me overlooking the defects for fear of being fired and as a result, betraying consumer trust. D.2 The risks for Green Move are both criminal and civil. Criminally, the company and Viktor may be prosecuted for sabotaging a genuine bidding procedure. The company may also be prosecuted if deaths or injuries are caused by the bikes; a tort case may be in the offing. Civil offences would include the payment of the ‘special’ fee so as to facilitate sales. Also, the United States might prosecute the company for wrongs done to workers who operated under poor working conditions. They might also answer to the same charges in Bangladesh. D.3 Short term steps the company should take would be to rethink about the board of managers and consider replacing themselves with professionals. Second, they should ensure that they re-address the defects in the Zero Pedal so as to avoid further problems. Long term steps include the fact that they should plan for the replacement of the Solar Group partners and evaluate other possibilities. They can also study the effects of outsourcing to Russia and come up with alternatives or solutions. This changes would go a long way in ‘fixing’ the problems at Green Move. D.4 The role and responsibility of the government is to carry out training and to issue relevant guidelines and punishments. The government can advise such start-ups through the provision of training for the entrepreneurs and notify them of legal and ethical facts. The lack of knowledge is what might have led to some mistakes e.g. the situation in Bangladesh. The government can also ‘fix’ such companies through the placement of stiff penalties that would deter start-ups like Green Move from engaging in unethical and illegal practices like corruption. Works Cited Arthur, Andrew R. "Employee assistance programmes: The emperors new clothes of stress management?" British Journal of Guidance & Counselling 28.4 (2000): 549-559. FEMA. Decision Making and Problem Solving. Independent Study. November 2005. (Pdf) INTERNATIONALLY RECOGNISED CORE LABOUR STANDARDS IN BANGLADESH. Report for the WTO General Council Review of the trade policies of Bangladesh. (Geneva, 24 and 26 September, 2012). Shawn Silverthorne. CBSNEWS. Pay the Bribe?February 15, 2008. www.cbsnews.com/news/business/ethicspaythebribe?/ Read More