Business Ethics

Evaluation of the Case Comment by Jumana Ayoub: This section is very short You need to have sections/headings for each of the risks and write a paragraph or two about each risk This study presents the CSR and how globalization has influenced it Thus, there is a lot you can write in terms of social risks, governance risks ….etc One more thing, you need to extract the ideas of the effective practices from the case study

There are various risks; social risk and problems; governance risks; ethical criteria; financial criteria and quality management. There are risks that are connected with the increase of environmental cost. The environmental cost in TMC incorporate ecological degradation, energy crisis, environmental pollution that might affect the financial position of the company. The increase in the environmental cost have risk in material cost and might affect the sustainability reports of TMC with the real benefit as weighed in cost saving. Social risk that TMC might have the fact that they might have cause pollution which might affect the public and this might mean that they will not have the public support (Mion & Beghini, 2019). Comment by Jumana Ayoub: This is just an assertion; I cannot see explanation for it or supporting ideas related to the above risks

The risk of not following the ethical criteria when it comes to handling the environment. Controlling pollution caused by the products that they deal with is not easy for the organization to represent to the public. The company involves itself with the sustainable plant initiative whereby they deal with the ecological products, energy reduction, and energy conversion along with the local community involvement. It seems the social contribution sustainability is working in handling the issue of global warming for all the sustainable plants (Dang & Reynolds, 2017). Reduction in the cost of environmental cost is not working since every single year there is more need to handle the externalities since the production process is on the go which means more materials and products are being used. The externalities might cause market failure, wear and tear on the roads, environmental externalities and safety externalities. Comment by Jumana Ayoub: Incomplete sentence

Proposed Solution/Changes

Internalizing the externalities: the externalities cause by the TMC which is a private sector can be minimized by internalizing these externalities. This can be done by shifting the cost burden from the negative externalities like traffic congestion or pollution from the outside sector to the internal sectors and this can be facilitated using the government subsidies, property rights or through taxation which is the best way to handle the TMC externalities. The company should incorporate the subsidies offered by the government to handle their externalities. Comment by Jumana Ayoub: There should be an explanation to these concepts “externalities” what do they refer to? Comment by Jumana Ayoub: What is the reference for this paragraph

Price policy: The public policy can be evaluated through increasing the corrective subsidy or tax to equal to any marginal damage caused per every unit of damaged caused by the properties that they produced (Connelly et al., 2017).

Quantity regulation: The government should be involved in this case to force TMC to offer the socially accepted quantity. In this case of Toyota Company there is need for them to offer products are socially efficient to the public and do not affect the public in any way but offer help to the public. The government should intervene to ensure that the organization is in place and is following all the necessary regulation to avoid any kind of issue with the public or the community in question. Comment by Jumana Ayoub: Reference This is a good para.

Recommendations

The relevant strategies to enhance these solution will involve corporate strategies which will include self-regulation by the TMC Company towards the benefits of the public. Sustainability in another strategy that the company should focus on to ensure that the set objective and goals are met. There is need to come up with an outlined plan toward the minimization of the externalities. The pricing strategy will be efficient to minimize the externalities negative in the public areas (Barron et al., 2017).

Marufa, this analysis is very short you have written only 500 words.

As I have explained since week 4, you are expected to write 1500 words to satisfy the assignment requirements. Check the outline that I have created on Learnline for guidance on how this assignment should be structured. I have also emailed it to you and provided you with a sample case study analysis